HSBC 2015 Annual Report Download - page 166

Report of the Directors: Risk (continued)
Liquidity and funding
HSBC HOLDINGS PLC
164
Additional contractual obligations
Under the terms of our current collateral obligations under
derivative contracts (which are ISDA compliant CSA
contracts and contracts entered into for pension
obligations and exclude the contracts entered for
special purpose vehicles and additional termination
events), and based on the positions at 31 December 2015,
we estimate that we could be required to post additional
collateral of up to $0.4bn (2014: $0.5bn) in the event of
a one-notch downgrade in credit ratings, which would
increase to $0.7bn (2014: $1.2bn) in the event of a
two-notch downgrade.
Contractual maturity of financial liabilities
The balances in the table below do not agree directly with
those in our consolidated balance sheet as the table
incorporates, on an undiscounted basis, all cash flows
relating to principal and future coupon payments (except
for trading liabilities and derivatives not treated as hedging
derivatives). Undiscounted cash flows payable in relation to
hedging derivative liabilities are classified according to their
contractual maturities. Trading liabilities and derivatives
not treated as hedging derivatives are included in the ‘On
demand’ time bucket and not by contractual maturity.
A maturity analysis of repos and debt securities in issue included in
trading liabilities is presented in Note 31 on the Financial
Statements.
In addition, loans and other credit-related commitments
and financial guarantees and similar contracts are generally
not recognised on our balance sheet. The undiscounted
cash flows potentially payable under financial guarantees
and similar contracts are classified on the basis of the
earliest date they can be called.
Cash flows payable by HSBC under financial liabilities by remaining contractual maturities
(Audited)
On
demand
$m
Due within
3 months
$m
Due between 3
and 12 months
$m
Due between
1 and 5 years
$m
Due after
5 years
$m
Deposits by banks 42,182 6,643 1,452 4,029 107
Customer accounts 1,076,595 160,368 43,289 10,964 263
Repurchase agreements
–
non-trading 13,181 64,109 2,144 535 543
Trading liabilities 141,614
–
–
–
–
Financial liabilities designated at fair value 327 4,077 6,149 24,642 41,365
Derivatives 276,141 255 970 1,721 1,652
Debt securities in issue 377 25,910 23,886 35,499 6,993
Subordinated liabilities
–
803 971 10,151 28,132
Other financial liabilities 59,298 17,476 7,226 10,188 1,014
1,609,715 279,641 86,087 97,729 80,069
Loan and other credit-related commitments 425,000 93,149 73,115 60,078 15,089
Financial guarantees and similar contracts 12,579 5,727 15,091 9,915 2,805
At 31 December 2015 2,047,294 378,517 174,293 167,722 97,963
Deposits by banks 52,682 17,337 3,600 3,580 390
Customer accounts 1,088,769 187,207 61,687 15,826 390
Repurchase agreements
–
non-trading 8,727 91,542 6,180 23 1,057
Trading liabilities 190,572
–
–
–
–
Financial liabilities designated at fair value 365 2,201 9,192 28,260 39,397
Derivatives 335,168 375 1,257 4,231 1,517
Debt securities in issue 9 32,513 30,194 37,842 7,710
Subordinated liabilities
–
737 1,256 10,003 42,328
Other financial liabilities 41,517 23,228 4,740 1,893 988
1,717,809 355,140 118,106 101,658 93,777
Loan and other credit-related commitments 406,561 101,156 64,582 62,312 16,769
Financial guarantees and similar contracts 13,166 6,306 13,753 9,575 4,278
At 31 December 2014 2,137,536 462,602 196,441 173,545 114,824