Annual Report and Accounts -

RNS Number : 7118P

HSBC Holdings PLC

31 March 2009

 

HSBC HOLDINGS PLC

 

 

 

Report of the Directors: Operating and Financial Review (continued)

Financial summary > Balance sheet > Loan maturities / Deposits

Loan maturity and interest sensitivity analysis 

At 31 December 2008, the geographical analysis of loan maturity and interest sensitivity by loan type on a contractual repayment basis was as follows: 

	Europe		Hong     Kong		Rest      of Asia-     Pacific		North     America		Latin     America		Total
	US$m		US$m		US$m		US$m		US$m		US$m
Maturity of 1 year or less
Loans and advances to banks	58,520		29,258		35,668		10,966		11,919		146,331
Commercial loans to customers
Commercial, industrial and international  trade	83,772		14,666		31,433		5,611		8,827		144,309
Real estate and other property related	18,430		6,253		6,071		9,527		1,497		41,778
Non-bank financial institutions	57,853		1,070		4,188		21,490		1,116		85,717
Governments	1,121		117		1,260		243		309		3,050
Other commercial	35,652		1,919		5,648		8,737		1,955		53,911
	196,828		24,025		48,600		45,608		13,704		328,765
Hong Kong Government Home Ownership Scheme	-		442		-		-		-		442
Residential mortgages and other personal loans	30,336		13,476		13,972		36,119		8,382		102,285
Loans and advances to customers	227,164		37,943		62,572		81,727		22,086		431,492
	285,684		67,201		98,240		92,693		34,005		577,823
Maturity after 1 year but within 5 years
Loans and advances to banks	3,152		388		398		442		190		4,570
Commercial loans to customers
Commercial, industrial and international  trade	23,889		4,943		7,360		8,087		3,640		47,919
Real estate and other property related	13,760		13,716		6,182		8,002		790		42,450
Non-bank financial institutions	3,419		594		1,111		3,112		1,185		9,421
Governments	323		784		355		78		769		2,309
Other commercial	11,839		3,365		4,130		3,214		2,072		24,620
	53,230		23,402		19,138		22,493		8,456		126,719
Hong Kong Government Home Ownership Scheme	-		1,404		-		-		-		1,404
Residential mortgages and other personal loans	31,595		8,991		9,948		52,234		5,755		108,523
Loans and advances to customers	84,825		33,797		29,086		74,727		14,211		236,646
	87,977		34,185		29,484		75,169		14,401		241,216
Interest rate sensitivity of loans and advances  to banks and commercial loans to customers
Fixed interest rate	11,333		185		2,734		5,066		2,460		21,778
Variable interest rate	45,049		23,605		16,802		17,869		6,186		109,511
	56,382		23,790		19,536		22,935		8,646		131,289
Maturity after 5 years
Loans and advances to banks	340		-		75		50		2,463		2,928
Commercial loans to customers
Commercial, industrial and international  trade	13,386		577		1,354		1,480		815		17,612
Real estate and other property related	8,180		4,560		1,019		3,209		512		17,480
Non-bank financial institutions	551		738		88		2,958		63		4,398
Governments	420		50		145		31		539		1,185
Other commercial	15,923		1,514		1,428		991		535		20,391
	38,460		7,439		4,034		8,669		2,464		61,066
Hong Kong Government Home Ownership Scheme	-		2,036		-		-		-		2,036
Residential mortgages and other personal loans	79,601		19,738		13,491		107,181		5,526		225,537
Loans and advances to customers	118,061		29,213		17,525		115,850		7,990		288,639
	118,401		29,213		17,600		115,900		10,453		291,567
Interest rate sensitivity of loans and advances  to banks and commercial loans to customers
Fixed interest rate	7,607		-		942		1,128		619		10,296
Variable interest rate	31,193		7,439		3,167		7,591		4,308		53,698
	38,800		7,439		4,109		8,719		4,927		63,994

Deposits

The following tables summarise the average amount of bank deposits, customer deposits and certificates of deposit ('CDs') and other money market instruments (which are included within 'Debt securities in issue' in the balance sheet), together with the average interest rates paid thereon for each of the past three years. The geographical analysis of average deposits is based on the location of the office in which the deposits are recorded and excludes balances with HSBC companies. The 'Other' category includes securities sold under agreements to repurchase.

	2008				2007				2006
	Average    balance	Average     rate			Average     balance		Average     rate		Average     balance		Average     rate
	US$m		%		US$m		%		US$m		%
Deposits by banks
Europe
Demand and other - non-interest  bearing	5,231		-		6,359		-		9,814		-
Demand - interest bearing	19,204		3.2		11,036		3.8		8,368		3.7
Time	43,695		3.9		38,470		4.7		27,447		4.0
Other	31,098		4.4		28,770		4.8		23,396		3.5
	99,228				84,635				69,025
Hong Kong
Demand and other - non-interest  bearing	1,375		-		1,331		-		1,031		-
Demand - interest bearing	2,780		2.0		2,420		4.3		2,428		4.6
Time	1,583		2.7		3,267		4.5		2,016		4.3
Other	178		3.4		251		0.4		362		3.3
	5,916				7,269				5,837
Rest of Asia-Pacific
Demand and other - non-interest  bearing	1,911		-		1,897		-		1,618		-
Demand - interest bearing	4,332		2.3		3,167		2.4		1,960		2.4
Time	10,342		3.5		6,433		5.1		3,645		4.8
Other	3,769		3.3		2,768		4.8		2,157		4.5
	20,354				14,265				9,380
North America
Demand and other - non-interest  bearing	761		-		827		-		767		-
Demand - interest bearing	5,684		1.7		3,759		4.8		3,033		5.3
Time	7,941		2.3		6,746		6.0		3,543		5.4
Other	449		1.6		169		7.1		699		5.6
	14,835				11,501				8,042
Latin America
Demand and other - non-interest  bearing	366		-		808		-		702		-
Demand - interest bearing	81		2.5		153		5.9		96		6.3
Time	3,357		5.6		2,690		6.5		1,732		5.5
Other	1,254		7.8		1,010		8.0		683		9.4
	5,058				4,661				3,213
Total
Demand and other - non-interest  bearing	9,644		-		11,222		-		13,932		-
Demand - interest bearing	32,081		2.7		20,535		3.8		15,885		4.5
Time	66,918		3.7		57,606		4.9		38,383		4.5
Other	36,748		4.5		32,968		5.0		27,297		3.9
	145,391				122,331				95,497

 

	2008				2007				2006
	Average    balance	Average     rate			Average     balance		Average     rate		Average     balance		Average     rate
	US$m		%		US$m		%		US$m		%
Customer accounts
Europe
Demand and other - non-interest  bearing	39,610		-		34,585		-		33,000		-
Demand - interest bearing	225,034		2.9		210,692		3.5		173,150		2.7
Savings	73,479		4.3		62,002		4.6		50,525		3.9
Time	83,208		3.8		69,476		4.9		59,374		4.2
Other	26,651		3.9		14,741		4.5		9,249		4.1
	447,982				391,496				325,298
Hong Kong
Demand and other - non-interest  bearing	15,620		-		14,214		-		13,011		-
Demand - interest bearing	126,199		0.4		107,053		2.2		88,754		2.4
Savings	65,068		2.4		63,649		3.9		58,883		3.8
Time	27,659		2.3		26,712		3.9		20,454		3.6
Other	1,563		1.2		1,164		4.3		51		3.9
	236,109				212,792				181,153
Rest of Asia-Pacific
Demand and other - non-interest  bearing	22,721		-		16,438		-		13,107		-
Demand - interest bearing	55,653		1.9		41,089		2.4		29,816		2.1
Savings	68,968		3.6		57,950		4.2		42,153		4.3
Time	15,226		3.3		11,538		4.6		10,246		4.5
Other	1,359		2.8		1,835		4.5		2,233		3.5
	163,927				128,850				97,555
North America
Demand and other - non-interest  bearing	16,759		-		15,175		-		13,662		-
Demand - interest bearing	18,261		1.6		15,389		3.3		14,406		2.9
Savings	87,001		2.5		79,529		3.3		65,216		2.8
Time	17,838		3.2		17,655		5.9		21,124		5.4
Other	5,123		2.4		3,234		3.7		3,339		2.0
	144,982				130,982				117,747
Latin America
Demand and other - non-interest  bearing	12,507		-		10,530		-		7,995		-
Demand - interest bearing	4,994		1.9		5,662		2.1		5,438		1.6
Savings	31,442		10.3		24,861		8.8		16,512		11.3
Time	15,179		5.2		12,443		5.9		7,665		5.9
Other	949		8.2		1,212		9.5		2,145		13.4
	65,071				54,708				39,755
Total
Demand and other - non-interest  bearing	107,217		-		90,942		-		80,775		-
Demand - interest bearing	430,141		1.9		379,885		3.0		311,564		2.6
Savings	325,958		3.9		287,991		4.4		233,289		4.1
Time	159,110		3.6		137,824		4.9		118,863		4.5
Other	35,645		3.6		22,186		4.7		17,017		4.8
	1,058,071				918,828				761,508
CDs and other money market  instruments
Europe	74,007		4.5		66,164		5.0		48,238		4.2
Hong Kong	745		3.0		941		3.9		1,191		3.5
Rest of Asia-Pacific	7,614		6.4		7,230		6.0		6,621		5.6
North America	22,278		3.3		23,735		5.4		23,472		4.6
Latin America	3,036		7.8		1,526		6.8		318		10.7
	107,680		4.5		99,596		5.2		79,840		4.5

 

       

Certificates of deposit and other time deposits

At 31 December 2008, the maturity analysis of CDs and other wholesale time deposits, by remaining maturity, was as follows:

	3 months      or less		After      3 months      but within     6 months		After      6 months      but within     12 months		After     12 months		Total
	US$m		US$m		US$m		US$m		US$m
Europe
Certificates of deposit	23,911		483		192		-		24,586
Time deposits:
- banks	34,951		1,943		2,418		4,649		43,961
- customers	78,562		5,140		4,135		1,598		89,435
	137,424		7,566		6,745		6,247		157,982
Hong Kong
Certificates of deposit	145		137		280		904		1,466
Time deposits:
- banks	1,031		5		-		67		1,103
- customers	21,898		1,057		274		419		23,648
	23,074		1,199		554		1,390		26,217
Rest of Asia-Pacific
Certificates of deposit	2,324		1,383		928		248		4,883
Time deposits:
- banks	3,912		887		310		164		5,273
- customers	13,106		1,651		670		1,490		16,917
	19,342		3,921		1,908		1,902		27,073
North America
Time deposits:
- banks	10,209		2		5		201		10,417
- customers	13,882		720		248		310		15,160
	24,091		722		253		511		25,577
Latin America
Certificates of deposit	1,161		640		60		316		2,177
Time deposits:
- banks	2,360		1,446		389		264		4,459
- customers	10,357		1,389		1,071		359		13,176
	13,878		3,475		1,520		939		19,812
Total
Certificates of deposit	27,541		2,643		1,460		1,468		33,112
Time deposits:
- banks	52,463		4,283		3,122		5,345		65,213
- customers	137,805		9,957		6,398		4,176		158,336
	217,809		16,883		10,980		10,989		256,661

 

The geographical analysis of deposits is based on the location of the office in which the deposits are recorded and excludes balances with HSBC companies. The majority of certificates of deposit and time deposits are in amounts of US$100,000 and over or the equivalent in other currencies.

Critical accounting policies

(Audited)

Introduction

The results of HSBC are sensitive to the accounting policies, assumptions and estimates that underlie the preparation of its consolidated financial statements. The significant accounting policies used in the preparation of the consolidated financial statements are described in Note 2 on the Financial Statements. 

When preparing the financial statements, it is the Directors' responsibility under UK company law to select suitable accounting policies and to make judgements and estimates that are reasonable and prudent. 

The accounting policies that are deemed critical to HSBC's results and financial position, in terms of the materiality of the items to which the policy is applied, and which involve a high degree of judgement including the use of assumptions and estimation, are discussed below. 

 

END

 

 

ACSSDSFESSUSESD