HSBC 2013 Annual Report Download - page 14

Liabilities
Excluding repurchase agreements, deposits and customer accounts balances were as follows:
2013
$m
2012
$m 2011 $m
Deposits by banks ................................................................................. 636 1,156 1,222
Customer accounts ................................................................................ 50,926 46,292 46,205
Repurchase agreements ......................................................................... 1,487 3,029 516
Total liabilities at 31 December 2013 were $79.2bn, an
increase of $3.8bn from 31 December 2012, primarily
due to increases of $4.6bn in customer accounts
excluding repurchase agreements and $1.7bn in trading
liabilities. The increase was partially offset by decreases
of $1.5bn in repurchase agreements, $0.6bn in debt
securities in issue and $0.5bn in deposits by banks
excluding repurchase agreements.
The increase in customer accounts is primarily due
to growth in savings, deposits and current accounts.
The increase in trading liabilities is primarily as
a result of increased activity in the rates business.
Repurchase agreements decreased primarily as a result
of reduced customer facilitating activity and balance
sheet management activities. Debt securities in issue
decreased primarily as a result of the maturity of $2.6bn
in secured funding and bearer deposit notes, partially
offset by replacement wholesale term funding of $2.0bn.
Deposits by banks excluding repurchase agreements
decreased primarily due to a reduction in treasury
money market term deposits.
Equity
Total equity at 31 December 2013 was $5.1bn, a
decrease of $0.3bn from 31 December 2012, primarily
due to the purchase and cancellation of $346m preferred
share capital and $30m in non-controlling interests in
accordance with the bank’s capital plan. The decrease in
equity was partially offset by profits generated in the year.
Global lines of business
We manage and report our operations around the
following global lines of business: Commercial
Banking; Global Banking and Markets, and, Retail
Banking and Wealth Management.
As a result of the bank’s previous decision to
wind-down the consumer finance business in Canada
and in order to more appropriately reflect the bank’s
active global lines of business, effective for 2013,
results previously reported as the ‘Consumer Finance’
segment have been included under Retail Banking and
Wealth Management, with exception of results relating
to corporate credit cards, which are included under
Commercial Banking. The results for the comparative
period have been restated to reflect this change.
Commercial Banking
Commercial Banking offers a full range of commercial
financial services and tailored solutions to more
than 30 thousand customers ranging from small
and medium-sized enterprises (‘SMEs’) to publicly
quoted companies.
Products and services
We segment our Commercial Banking business into
Corporate, to serve both large and mid-market companies
with more sophisticated financial needs, and Business
Banking, to serve SMEs, enabling differentiated
coverage of our target customers. This allows us to
provide continuous support to companies as they grow
both domestically and internationally, and ensures a clear
focus on internationally aspirant customers.
We place particular emphasis on international
connectivity to meet the needs of our business
customers. We aim to be recognized as the leading
international trade and business bank by focusing on
target segments, repositioning towards international
business and enhancing collaboration across the Group.
This will be underpinned by reducing complexity and
operational risk and driving efficiency gains through
adopting a global operating model.
– Credit and Lending: we offer a broad range of
domestic and cross-border financing, including
overdrafts, term loans, leasing, and syndicated,
leveraged, acquisition and project finance.
HSBC BANK CANADA
Management’s Discussion and Analysis (continued)
12