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HSBC BANK PLC
Notes on the Financial Statements (continued)
185
Nature and risks associated with the group’s interests in unconsolidated structured entities
Group
managed
funds
Non-group
managed
funds
Other
Total
£m
£m
£m
£m
At 31 December 2014
Total assets
10,582
1,132,196
13,156
1,155,934
Group interest – assets
Cash
–
–
–
–
Trading assets
27
85
1,057
1,169
Financial assets designated at fair value
878
3,453
–
4,331
Derivatives
–
–
797
797
Loans and advances to banks
–
84
35
119
Loans and advances to customers
55
–
171
226
Financial investments
40
416
94
550
Other assets
1
–
–
1
Total assets in relation to the group’s interests
in the unconsolidated structured entities
1,001
4,038
2,154
7,193
Group interest – liabilities
Customer accounts
26
–
–
26
Total liabilities in relation to the group’s
interests in the unconsolidated structured entities
26
–
–
26
The group’s maximum exposure
1,001
4,038
2,154
7,193
Total income from the group interests1
3
42
159
204
At 31 December 2013
Total assets
13,674
1,005,343
10,036
1,029,053
Group interest – assets
Cash
—
—
—
—
Trading assets
44
149
985
1,178
Financial assets designated at fair value
1,151
3,055
3,972
8,178
Derivatives
—
23
714
737
Loans and advances to customers
60
—
253
313
Financial investments
74
302
80
456
Other assets
54
25
—-
79
Total assets in relation to the group’s interests
in the unconsolidated structured entities
1,383
3,554
6,004
10,941
Total liabilities in relation to the group’s
interests in the unconsolidated structured entities
78
—
—
78
The group’s maximum exposure
1,383
3,554
6,004
10,941
Total income from the group interests1
2
14
358
374
1. Income includes recurring and non-recurring fees, interest, dividends, gains or loss on the remeasurement or derecognition of interests in
structured entities, any mark-to-market gains/losses on a net basis and gains or losses from the transfer of assets and liabilities to the structured
entity.
Group managed funds
The group has established and manages money market funds and non-money market investment funds to provide
customers with investment opportunities. The group, as fund manager, may be entitled to receive a management
and performance fee based on the assets under management.
Non-group managed funds
The group purchases and holds units of third party managed funds in order to facilitate both business and customer
needs.
Other
The group has established structured entities in the normal course of business for example, structured credit
transactions for customers, to provide finance to public and private sector infrastructure projects, and for asset and
structured finance transactions.
Group sponsored structured entities
Accounting policy
The group is considered to sponsor another entity if, in addition to ongoing involvement with the entity, it had a key role in
establishing that entity or in bringing together the relevant counterparties to a structured transaction, so that the transaction, which is
the purpose of the entity, could occur. The group is generally not considered a sponsor if the only involvement with the entity is
merely administrative in nature.
The amount of assets transferred to and income received from such sponsored entities during 2014 and 2013 was not
significant.