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11 Derivatives (continued)
2012
3 months
or less
$m
More than
3 months
but less than
1 year
$m
More than
1 year
but less than
5 years
$m
5 years
or more
$m
Assets .......................................................................... 17,239 14,621 11,826 119
Liabilities .................................................................... (7,622) (6,048) (4,364) (387)
Net cash inflow/(outflow) exposure ............................ 9,617 8,573 7,462 (268)
The gains and losses on ineffective portions of such derivatives are recognized immediately in ‘Net trading income’.
During 2013, a gain of $5m (2012: gain of $3m) was recognized due to hedge ineffectiveness.
The following tables summarize the fair values of the bank’s derivative portfolio at 31 December segregated between
derivatives that are in a favourable or receivable position and those in an unfavourable or payable position. Fair values
of derivative instruments are determined using observable inputs (note 24).
2013
Trading Hedging
Favourable
position
$m
Unfavourable
position
$m
Net position
$m
Favourable
position
$m
Unfavourable
position
$m
Net position
$m
Total
net position
$m
Interest rate
contracts
Swaps .............. 483 (436) 47 220 (135) 85 132
Caps ................. 4 (4) – – – – –
Other interest rate
contracts .......... 5 (13) (8) – – – (8)
492 (453) 39 220 (135) 85 124
Foreign exchange
contracts
Spot contracts .. 3 (6) (3) – – – (3)
Forward
contracts ........ 602 (565) 37 – – – 37
Currency swaps
and options .... 472 (459) 13 288 (93) 195 208
1,077 (1,030) 47 288 (93) 195 242
Other derivative
contracts
Commodity
contracts ........ 35 (35) – – – – –
1,604 (1,518) 86 508 (228) 280 366
95