HSBC 2015 Annual Report Download - page 65

HSBC HOLDINGS PLC
63
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Trading liabilities fell by $49bn, mainly in North America
and Europe reflecting the reduction in trading assets and
our focus on optimising the funding of trading assets.
The decrease in derivative liabilities was in line with that of
derivative assets as the underlying risk was broadly
matched.
Equity
Total shareholders’ equity fell by $2.0bn or 1%. The effects
of profits generated in the year and the issue of new
contingent convertible securities were more than offset by
the combined effect of dividends paid and an increase in
accumulated foreign exchange losses, which reflected the
marked appreciation in the US dollar against a number of
currencies, notably sterling and the euro. We recorded fair
value gains in our available-for-sale reserve relating to our
equity interest in Visa Europe of $432m. These were more
than offset by fair value gains transferred to the income
statement and fair value losses on debt securities during
the year. The gains on Visa Europe were assessed against
the expected consideration to be received from the
proposed sale to Visa Inc. This transaction is expected to
complete in 2016, at which point we will transfer the fair
value gains to the income statement.
Risk-weighted assets
Risk-weighted assets (‘RWA’s) totalled $1,103bn at
31 December 2015, a decrease of $117bn during 2015.
After foreign currency translation differences, RWAs
reduced by $65bn in 2015, driven by targeted RWA
initiatives of $124bn, partly offset by business growth of
$35bn, and from growth in our associates of $14bn. The
RWA initiatives included:
• the accelerated sell-down of our consumer mortgage
portfolio in the US and the GB&M legacy book, together
contributing $30bn to the reduction; and
• exposure reductions, process improvements and refined
calculations, which reduced RWAs by $93bn, 61% of
which were in GB&M.
The business growth of $35bn was from higher term
lending to corporate customers in CMB and from higher
general lending to corporates in GB&M. There was an
increase of $14bn in our associates, BoCom and The Saudi
British Bank.
Customer accounts by country
2015
$m
2014
$m
Europe 497,876 545,959
–
UK 404,084 439,313
–
France23 35,635 40,750
–
Germany 13,873 15,757
–
Switzerland 10,448 11,058
–
other 33,836 39,081
Asia 598,620 577,491
–
Hong Kong 421,538 389,094
–
Australia 17,703 19,312
–
India 11,795 11,678
–
Indonesia 5,366 5,788
–
Mainland China 46,177 46,588
–
Malaysia 14,114 16,292
–
Singapore 41,307 43,731
–
Taiwan 11,812 14,901
–
other 28,808 30,107
Middle East and North Africa (excluding Saudi Arabia) 36,468 39,720
–
Egypt 6,602 7,663
–
United Arab Emirates 18,281 19,771
–
other 11,585 12,286
North America 135,152 138,884
–
US 86,322 84,894
–
Canada 39,727 43,871
–
other 9,103 10,119
Latin America 21,470 48,588
–
Mexico 15,798 18,360
–
other 5,672 30,228
included in other: Brazil22
–
23,204
At 31 December 1,289,586 1,350,642
For footnotes, see page 99.