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Interim Report - 17 of 28

15th Aug 2014 16:31

RNS Number : 2040P

HSBC Holdings PLC

15 August 2014

Renegotiated loans and forbearance

There have been no material changes to our policies and procedures regarding renegotiated loans and forbearance in the first half of 2014.

Current policies and procedures regarding renegotiated loans and forbearance are described on pages 173 and 268-272 of the Annual Report and Accounts 2013.

Renegotiated loans and advances to customers

	At 30 June 2014
	Neither past due nor impaired	Past due but not impaired	Impaired	Total
	US$m	US$m	US$m	US$m

Personal ...................................................................	5,552	2,661	11,435	19,648
- first lien residential mortgages ..........................	4,550	2,356	10,121	17,027
- other personal15 ................................................	1,002	305	1,314	2,621

Corporate and commercial .......................................	2,849	279	8,501	11,629
- manufacturing and international trade services ..	1,527	81	4,057	5,665
- commercial real estate and other property-related ..............................................................	737	112	3,420	4,269
- governments .....................................................	257	-	44	301
- other commercial10 ...........................................	328	86	980	1,394

Financial ..................................................................	358	-	292	650

	8,759	2,940	20,228	31,927

Total renegotiated loans and advances to customers as apercentage of total gross loans and advances to customers1 ...............................................................................					3.0

	At 30 June 2013				At 31 December 2013
	Neither past due nor impaired	Past due but not impaired	Impaired	Total		Neither past due nor impaired	Past due but not impaired	Impaired	Total
	US$m	US$m	US$m	US$m		US$m	US$m	US$m	US$m

Personal ......................	6,953	3,299	16,008	26,260		5,895	3,585	12,092	21,572
- first lien residentialmortgages ............	5,638	2,862	14,498	22,998		4,881	3,219	10,857	18,957
- other personal15 ...	1,315	437	1,510	3,262		1,014	366	1,235	2,615

Corporate and commercial ..............	3,521	292	6,987	10,800		3,147	362	8,493	12,002
- manufacturing andinternational tradeservices ...............	1,944	75	3,190	5,209		1,529	163	4,178	5,870
- commercial real estate and other property-related ..	1,164	115	3,336	4,615		1,050	113	3,385	4,548
- governments .......	150	-	-	150		274	-	43	317
- other commercial10 .......	263	102	461	826		294	86	887	1,267

Financial .....................	262	16	355	633		358	-	243	601

	10,736	3,607	23,350	37,693		9,400	3,947	20,828	34,175

Total renegotiated loans andadvances to customers asa percentage of total grossloans and advances tocustomers1 ................................................................................				4.0					3.4

For footnotes, see page 172.

Renegotiated loans and advances to customers by geographical region

	Europe	Asia9	MENA	North America	Latin America	Total
	US$m	US$m	US$m	US$m	US$m	US$m
At 30 June 2014
Personal ......................................................	2,166	418	123	16,410	531	19,648
- first lien residential mortgages .............	1,743	107	69	15,034	74	17,027
- other personal15 ...................................	423	311	54	1,376	457	2,621

Corporate and commercial ..........................	7,064	454	1,579	508	2,024	11,629
- manufacturing and international tradeservices ................................................	3,534	218	594	151	1,168	5,665
- commercial real estate and otherproperty-related ..................................	2,862	40	564	336	467	4,269
- governments ........................................	-	-	136	-	165	301
- other commercial10 ..............................	668	196	285	21	224	1,394

Financial .....................................................	287	5	356	1	1	650

	9,517	877	2,058	16,919	2,556	31,927

Total impairment allowances onrenegotiated loans ....................................	1,355	73	436	2,025	893	4,782
- individually assessed .............................	1,335	52	436	117	441	2,381
- collectively assessed .............................	20	21	-	1,908	452	2,401

At 30 June 2013
Personal ......................................................	2,339	454	165	22,600	702	26,260
- first lien residential mortgages .............	1,806	128	102	20,896	66	22,998
- other personal15 ...................................	533	326	63	1,704	636	3,262

Corporate and commercial ..........................	6,205	294	1,654	549	2,098	10,800
- manufacturing and international tradeservices ................................................	2,920	109	547	224	1,409	5,209
- commercial real estate and otherproperty-related ..................................	3,060	5	805	314	431	4,615
- governments ........................................	-	-	1	-	149	150
- other commercial10 ..............................	225	180	301	11	109	826

Financial .....................................................	272	3	355	2	1	633

	8,816	751	2,174	23,151	2,801	37,693

Total impairment allowances onrenegotiated loans ....................................	1,596	82	424	2,694	687	5,483
- individually assessed .............................	1,579	62	424	124	263	2,452
- collectively assessed .............................	17	20	-	2,570	424	3,031

At 31 December 2013
Personal ......................................................	2,251	435	149	18,130	607	21,572
- first lien residential mortgages .............	1,820	117	91	16,853	76	18,957
- other personal15 ...................................	431	318	58	1,277	531	2,615

Corporate and commercial ..........................	7,270	330	1,583	658	2,161	12,002
- manufacturing and international tradeservices ................................................	3,709	103	489	198	1,371	5,870
- commercial real estate and otherproperty-related ..................................	2,940	39	662	446	461	4,548
- governments ........................................	-	-	137	-	180	317
- other commercial10 ..............................	621	188	295	14	149	1,267

Financial .....................................................	235	2	362	1	1	601

	9,756	767	2,094	18,789	2,769	34,175

Total impairment allowances onrenegotiated loans ....................................	1,867	101	460	2,285	1,014	5,727
- individually assessed .............................	1,821	78	460	98	464	2,921
- collectively assessed .............................	46	23	-	2,187	550	2,806

For footnotes, see page 172.

The following commentary is on a reported basis.

In the first half of 2014 renegotiated loans declined by US$2.2bn to US$32bn at 30 June 2014 (31 December 2013: US$34bn). The most significant portfolio of renegotiated loans remained in North America, substantially all of which were retail loans held by HSBC Finance.

The next largest portfolio of renegotiated loans was in Europe, largely concentrated in the commercial real estate and other property sectors at 30% (31 December 2013: 30%) and the manufacturing and international trade service sectors at 37% (31 December 2013: 38%).

In the corporate and commercial sector, renegotiated loans reduced by 3.1% compared with the end of 2013.

HSBC Finance loan modifications and re‑ageing

Types of loan renegotiation programme in HSBC Finance

· A temporary modification is a change to the contractual terms of a loan that results in the giving up of a right to contractual cash flows over a pre-defined period. With a temporary modification the loan is expected to revert back to the original contractual terms, including the interest rate charged, after the modification period. An example is reduced interest payments.

A substantial number of HSBC Finance modifications involve interest rate reductions. These modifications lower the amount of interest income HSBC Finance is contractually entitled to receive in future periods. Historically, modifications have generally been for six months, although extended modification periods are now more common.

Loans that have been re-aged are classified as impaired with the exception of first-time loan re-ages that were less than 60 days past due at the time of re-age. These remain classified as impaired until they have demonstrated a history of payment performance against their original contracted terms for at least 12 months.

· A permanent modification is a change to the contractual terms of a loan that results in giving up a right to contractual cash flows over the life of the loan. An example is a permanent reduction in the interest rate charged.

Permanent or long-term modifications which are due to an underlying hardship event remain classified as impaired for their full life.

· The term 're-age' describes a renegotiation by which the contractual delinquency status of a loan is reset to current after demonstrating payment performance. The overdue principal and/or interest is deferred and paid at a later date. Loan re-ageing enables customers who have been unable to make a small number of payments to have their loan delinquency status reset to current so that their credit score is not affected by the overdue balances.

Loans that have been re-aged remain classified as impaired until they have demonstrated a history of payment performance against the original contractual terms for at least 12 months.

A temporary or permanent modification may also lead to a re‑ageing of a loan although a loan may be re-aged without any modification to its original terms and conditions.

Where loans have been granted multiple concessions, subject to the qualifying criteria discussed below, the concession is deemed to have been made due to concern regarding the borrower's ability to pay, and the loan is disclosed as impaired. The loan remains disclosed as impaired from that date forward until the borrower has demonstrated a history of repayment performance for the period of time required for either modifications or re-ages, as described above.

HSBC Finance maintains loan modification and re‑age ('loan renegotiation') programmes in order to manage customer relationships, improve collection opportunities and, if possible, avoid foreclosure. The volume of loans that qualify for modification has reduced significantly in recent years. We expect this trend to continue as HSBC Finance believes the percentage of its customers with unmodified loans who would benefit from loan modification in a way that would avoid non-payment of future cash flows is decreasing. In addition, volumes of new loan modifications are expected to decrease due to improvements in economic conditions and the continued run-off of the CML portfolio.

Qualifying criteria

For an account to qualify for renegotiation it must meet certain criteria. However, HSBC Finance retains the right to decline a renegotiation. The extent to which HSBC Finance renegotiates accounts that are eligible under its existing policies will vary depending upon its view of prevailing economic conditions and other factors which may change from year to year. In addition, exceptions to policies and practices may be made in specific situations in response to legal or regulatory agreements or orders.

Renegotiated real estate secured and personal lending receivables are not eligible for a subsequent renegotiation for twelve or six months, respectively, with a maximum of five renegotiations permitted within a five-year period. Borrowers must be approved for a modification and generally make two minimum qualifying monthly payments within 60 days to activate a modification.

In certain circumstances where the debt has been restructured in bankruptcy proceedings, fewer or no payments may be required. Accounts whose borrowers are subject to a Chapter 13 plan filed with a bankruptcy court generally may be re-aged upon receipt of one qualifying payment, whereas accounts whose borrowers have filed for Chapter 7 bankruptcy protection may be re-aged upon receipt of a signed reaffirmation agreement. In addition, for some products, accounts may be re-aged without receipt of a payment in certain special circumstances (e.g. in the event of a natural disaster or a hardship programme).

At 30 June 2014, renegotiated real estate secured accounts represented 54% (31 December 2013: 53%) of HSBC Finance's total renegotiated loans, and US$9bn (31 December 2013: US$10bn) of renegotiated real estate secured loans in HSBC Finance were classified as impaired.

Gross loan portfolio of HSBC Finance real estate secured balances

	Re-aged16	Modified and re-aged	Modified	Total re- negotiated loans	Total non- renegotiated loans		Total gross loans	Total impair- ment allowances	Impair- ment allowances/ gross loans
	US$m	US$m	US$m	US$m		US$m	US$m	US$m	%

30 June 2014 ............	7,389	7,391	664	15,444		11,830	27,274	2,338	9
30 June 2013 ..............	9,237	10,796	961	20,994		15,066	36,060	3,822	11
31 December 2013......	8,167	8,213	768	17,148		13,171	30,319	3,028	10

For footnote, see page 172.

Movement in HSBC Finance renegotiated real estate balances

	Half-year to
	30 June 2014	30 June 2013	31December 2013
	US$m	US$m	US$m

At beginning of period ............................................................................	17,148	22,421	20,994
Additions ......................................................................................................	357	548	419
Payments .....................................................................................................	(675)	(807)	(733)
Write-offs ....................................................................................................	(333)	(641)	(481)
Transfers and disposals .................................................................................	(1,053)	(527)	(3,051)

At end of period ......................................................................................	15,444	20,994	17,148

Number of renegotiated real estate secured accounts remaining in HSBC Finance's portfolio

	Re-aged	Modified and re-aged	Modified	Total	Total number of loans
	(000s)	(000s)	(000s)	(000s)	(000s)

30 June 2014 .........................................	96	71	7	174	325
30 June 2013 ...........................................	113	100	10	223	408
31 December 2013 ..................................	102	78	8	188	352

During the half-year to 30 June 2014, the aggregate number of renegotiated loans reduced, due to the continued run-off of the CML portfolio and lower levels of modifications of real estate and other retail loans resulting from improved economic conditions in the US.

Within the constraints of our Group credit policy, HSBC Finance's policies allow for multiple renegotiations under certain circumstances, and a number of accounts received a second or further renegotiation during the first half of the year which are not duplicated in the statistics presented above. These statistics present a loan as an addition to the volume of renegotiated loans on its first renegotiation only. At 30 June 2014, renegotiated loans were 57% (31 December 2013: 57%) of HSBC Finance's real estate secured accounts.

Impaired loans

Impaired loans and advances are those that meet any of the following criteria:

· wholesale loans and advances classified as Customer Risk Rating ('CRR') 9 or CRR 10. These grades are assigned when the bank considers that either the customer is unlikely to pay its credit obligations in full, without recourse to security, or when the customer is past due 90 days or more on any material credit obligation to HSBC. For further details of the CRR scale, see page 267 of the Annual Report and Accounts 2013;

· retail loans and advances classified as Expected Loss ('EL') 9 or EL 10. These grades are assigned to retail loans and advances greater

than 90 days past due unless individually they have been assessed as not impaired. For further details of the EL scale see page 267 of the Annual Report and Accounts 2013;

· renegotiated loans and advances that have been subject to a change in contractual cash flows as a result of a concession which the lender would not otherwise consider, and where it is probable that without the concession the borrower would be unable to meet its contractual payment obligations in full, unless the concession is insignificant and there are no other indicators of impairment. Renegotiated loans remain classified as impaired until there is sufficient evidence to demonstrate a significant reduction in the risk of non-payment of future cash flows, and there are no other indicators of impairment.

For loans that are assessed for impairment on a collective basis, the evidence to support reclassification as no longer impaired typically comprises a history of payment performance against the original or revised terms, depending on the nature and volume of renegotiation and the credit risk characteristics surrounding the renegotiation. For loans that are assessed for impairment on an individual basis, all available evidence is assessed on a case by case basis.

In HSBC Finance, where a significant majority of HSBC's loan forbearance activity occurs, the history of payment performance is assessed with reference to the original terms of the contract, reflecting the higher credit risk characteristics of this portfolio. The payment performance periods are monitored to ensure they remain appropriate to the levels of recidivism observed within the portfolio.

Further disclosure about loans subject to forbearance is provided on page 268 of the Annual Report and Accounts 2013. Renegotiated loans and forbearance disclosures are subject to evolving industry practice and regulatory guidance.

Impaired loans and advances to customers and banks by industry sector

	Impaired loans and advances at 30 June 2014			Impaired loans and advancesat 30 June 2013			Impaired loans and advancesat 31 December 2013
	Individ- ually assessed	Collect- ively assessed	Total	Individ- ually assessed	Collect- ively assessed	Total	Individ- ually assessed	Collect- ively assessed	Total
	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m

Banks ............................	56	-	56	85	-	85	75	-	75

Customers ......................	18,076	15,804	33,880	17,610	20,510	38,120	19,395	17,033	36,428
- personal .................	2,171	15,367	17,538	2,064	20,022	22,086	2,185	16,613	18,798
- corporate and commercial ................	15,274	436	15,710	14,676	488	15,164	16,457	420	16,877
- financial .................	631	1	632	870	-	870	753	-	753


	18,132	15,804	33,936	17,695	20,510	38,205	19,470	17,033	36,503

On a reported basis, impaired loans and advances were US$33.9bn at 30 June 2014 (30 June 2013: US$38.2bn; 31 December 2013: US$36.5bn). The decrease of US$2.6bn from the end of 2013 was due to a reduction in individually assessed impaired balances, mainly in Europe, as well as fewer collectively assessed impaired balances in the US CML portfolio due to run-off and loan sales.

Impairment of loans and advances

The tables below analyse by geographical region the impairment allowances recognised for impaired loans and advances that are either individually assessed or collectively assessed, and collective impairment allowances on loans and advances classified as not impaired.

Impairment allowances on loans and advances to customers by geographical region

	Europe	Asia9	MENA	North America	Latin America	Total
	US$m	US$m	US$m	US$m	US$m	US$m
At 30 June 2014
Gross loans and advances to customers1
Individually assessed impaired loans17 (A) ................................	10,374	1,605	2,060	1,413	2,624	18,076

Collectively assessed18 (B) ............	474,224	362,018	28,314	131,793	46,786	1,043,135
- impaired loans17 ....................	1,581	176	143	12,289	1,615	15,804
- non-impaired loans19 .............	472,643	361,842	28,171	119,504	45,171	1,027,331


Total (C) ......................................	484,598	363,623	30,374	133,206	49,410	1,061,211

Less: Impairment allowances (c) ...	4,928	1,236	1,464	3,586	2,756	13,970
- individually assessed (a) .........	3,430	650	1,068	384	959	6,491
- collectively assessed (b) ........	1,498	586	396	3,202	1,797	7,479


Net loans and advances .................	479,670	362,387	28,910	129,620	46,654	1,047,241

(a) as a percentage of (A) .............	33.1	40.5	51.8	27.2	36.5	35.9
(b) as a percentage of (B) .............	0.3	0.2	1.4	2.4	3.8	0.7
(c) as a percentage of (C) .............	1.0	0.3	4.8	2.7	5.6	1.3

At 30 June 2013
Gross loans and advances to customers1
Individually assessed impaired loans17 (D) ................................	10,712	1,356	2,108	1,629	1,805	17,610

Collectively assessed18 (E) ............	403,900	326,472	27,507	133,274	45,092	936,245
- impaired loans17 ....................	1,505	185	206	17,059	1,555	20,510
- non-impaired loans19 .............	402,395	326,287	27,301	116,215	43,537	915,735


Total (F) ......................................	414,612	327,828	29,615	134,903	46,897	953,855

Less: Impairment allowances (f) ...	5,341	1,145	1,681	5,042	2,352	15,561
- individually assessed (d) .........	3,853	597	1,235	498	579	6,762
- collectively assessed (e) ........	1,488	548	446	4,544	1,773	8,799


Net loans and advances .................	409,271	326,683	27,934	129,861	44,545	938,294

(d) as a percentage of (D) .............	36.0	44.0	58.6	30.6	32.1	38.4
(e) as a percentage of (E) .............	0.4	0.2	1.6	3.4	3.9	0.9
(f) as a percentage of (F) ..............	1.3	0.3	5.7	3.7	5.0	1.6

At 31 December 2013
Gross loans and advances to customers1
Individually assessed impaired loans17 (G) ................................	11,497	1,450	2,117	1,736	2,595	19,395

Collectively assessed18 (H) ............	450,176	336,661	26,659	130,454	43,887	987,837
- impaired loans17 ....................	1,690	173	148	13,373	1,649	17,033
- non-impaired loans19 .............	448,486	336,488	26,511	117,081	42,238	970,804


Total (I) .......................................	461,673	338,111	28,776	132,190	46,482	1,007,232

Less: Impairment allowances (i) ...	5,563	1,214	1,565	4,237	2,564	15,143
- individually assessed (g) .........	4,019	634	1,131	410	878	7,072
- collectively assessed (h) ........	1,544	580	434	3,827	1,686	8,071


Net loans and advances .................	456,110	336,897	27,211	127,953	43,918	992,089

(g) as a percentage of (G) .............	35.0	43.7	53.4	23.6	33.8	36.5
(h) as a percentage of (H) .............	0.3	0.2	1.6	2.9	3.8	0.8
(i) as a percentage of (I) ...............	1.2	0.4	5.4	3.2	5.5	1.5

For footnotes, see page 172.

Net loan impairment charge to the income statement by geographical region

	Europe	Asia9	MENA	North America	Latin America	Total
	US$m	US$m	US$m	US$m	US$m	US$m
Half-year to 30 June 2014
Individually assessed impairment allowances ..............................................................	328	50	(50)	76	154	558
- new allowances ..................................	634	147	32	152	230	1,195
- release of allowances no longer required .................................................	(292)	(88)	(77)	(63)	(44)	(564)
- recoveries of amounts previously written off ............................................	(14)	(9)	(5)	(13)	(32)	(73)

Collectively assessed impairment allowances ............................................	151	166	(7)	319	838	1,467
- new allowances net of allowance releases .................................................	412	232	12	373	921	1,950
- recoveries of amounts previously written off ............................................	(261)	(66)	(19)	(54)	(83)	(483)


Total charge for impairment losses ...........	479	216	(57)	395	992	2,025
- customers ..........................................	469	216	(57)	395	992	2,015
- banks ................................................	10	-	-	-	-	10


Half-year to 30 June 2013
Individually assessed impairment allowances ..............................................................	714	34	(58)	168	263	1,121
- new allowances ..................................	914	118	67	210	312	1,621
- release of allowances no longer required .................................................	(180)	(68)	(111)	(21)	(20)	(400)
- recoveries of amounts previously written off ............................................	(20)	(16)	(14)	(21)	(29)	(100)

Collectively assessed impairment allowances ............................................	209	146	9	552	1,152	2,068
- new allowances net of allowance releases .................................................	480	216	29	597	1,285	2,607
- recoveries of amounts previously written off ............................................	(271)	(70)	(20)	(45)	(133)	(539)


Total charge for impairment losses ...........	923	180	(49)	720	1,415	3,189
- customers ..........................................	923	180	(49)	720	1,415	3,189


Half-year to 31 December 2013
Individually assessed impairment allowances ..............................................................	662	111	(28)	94	360	1,199
- new allowances ..................................	914	198	129	188	390	1,819
- release of allowances no longer required .................................................	(222)	(77)	(124)	(77)	(11)	(511)
- recoveries of amounts previously written off ............................................	(30)	(10)	(33)	(17)	(19)	(109)

Collectively assessed impairment allowances ............................................	147	192	33	421	867	1,660
- new allowances net of allowance releases .................................................	463	263	53	461	968	2,208
- recoveries of amounts previously written off ............................................	(316)	(71)	(20)	(40)	(101)	(548)


Total charge for impairment losses ...........	809	303	5	515	1,227	2,859
- customers ..........................................	809	303	5	510	1,227	2,854
- banks ................................................	-	-	-	5	-	5

For footnote, see page 172.

Loan impairment charges by geographical region

Loan impairment charges by industry

Loan impairment in the first half of 2014

On a reported basis, loan impairment allowances at 30 June 2014 were US$14.0bn, an 8% decrease compared with the end of 2013. Impaired loans were US$33.9bn, US$2.6bn lower than the balance at 31 December 2013.

The following commentary is on a constant currency basis.

The reduction in loan impairment allowances was mainly due to lower individually assessed new allowances in Europe, as well as a decrease in collectively assessed new allowances in North America and Latin America.

Releases and recoveries of US$1.1bn were 7% higher than in the first half of 2013 due to reduced delinquency and improved market conditions in Europe and higher releases of individually assessed allowances in North America.

In Europe, new loan impairment allowances were US$1.0bn, a 29% decrease on the first half of 2013 with a reduction in both individually and collectively assessed allowances, primarily in the UK, notably in the commercial and corporate sectors, reflecting improved quality in the portfolio and the economic environment.

Impaired loans of US$12.0bn at 30 June 2014 were 11% lower than at 31 December 2013, primarily in the corporate and commercial sectors.

Releases and recoveries in Europe were US$567m, a rise of 13% compared with the first half of 2013, primarily due to higher releases in the corporate and commercial sectors in the UK.

In Asia, new impairment allowances were US$379m, an increase of US$62m from the first half of 2013 due to an increase in individually assessed allowances against a small number of CMB exposures in Hong Kong, as well as higher new collective allowances net of releases as a result of higher releases in the previous year which reflected an overall improvement in the loan portfolio and growth in lending balances.

Impaired loans of US$1.8bn at 30 June 2014 were 8% higher than at 31 December 2013, mainly relating to corporate and commercial exposures in Indonesia, Hong Kong and Malaysia.

Releases and recoveries in the region were US$163m, an increase of 10% compared with the first half of 2013, due to higher individual releases.

In the Middle East and North Africa, new loan impairment allowances were US$44m, a decrease of US$52m compared with the first half of 2013 reflecting lower individually and collectively assessed new allowances in the UAE.

Impaired loans of US$2.2bn at 30 June 2014 were 3% lower than at 31 December 2013, mainly due to a decrease in individually assessed corporate and commercial loans as a result of ongoing loan recoveries.

Releases and recoveries in the region were US$101m, a fall of 31% compared with the first half of 2013, primarily due to fewer significant one-off recoveries.

In North America, new loan impairment allowances decreased by 34% to US$525m. This was driven by reduced collectively assessed new allowances as a result of the continued run-off of the CML portfolio though this was partly offset by lower favourable market value adjustments of the underlying properties as improvements in housing market conditions were less pronounced in the first half of 2014. In addition, collectively assessed allowances increased in CMB and GB&M as we revised certain estimates used in our corporate loan impairment calculation. Individually assessed new allowances also reduced in Canada in CMB.

Impaired loans fell by 9% from the end of 2013 to US$13.7bn, driven by the continued run-off of the CML portfolio and loan sales.

Releases and recoveries in North America were US$130m, a 49% increase compared with the first half of 2013, driven by releases of individually assessed allowances in the wholesale portfolio, due to upgrades of certain customers in the US, and higher releases relating to CMB clients in Canada.

In Latin America, new impairment allowances fell by 21% to US$1.2bn, driven by lower collectively assessed new allowances in Brazil reflecting the change to the impairment model and assumption revisions for restructured loan portfolios in both RBWM and CMB, which occurred in the first half of 2013, though this was partly offset by an increase due to refinements to the impairment model for non-restructured loan portfolios, primarily in RBWM, in the first half of 2014. Individually assessed new allowances also reduced, notably in Mexico, reflecting lower new allowances in CMB, in particular relating to homebuilders.

Impaired loans fell by 4% from the end of 2013 to US$4.2bn, notably in Brazil. This was largely due to the settlement of a significant individually assessed corporate account.

Releases and recoveries in Latin America were US$159m, a reduction of 3% compared with the first half of 2013 due to lower recoveries on collectively assessed balances in the retailportfolio due to a reduction in the number of loans being written off. This was partly offset by releases of individually assessed allowances on a small number of GB&M and CMB exposures.

Movement in impairment allowances on loans and advances to customers and banks

	Banks	Customers
	individually assessed	Individually assessed	Collectively assessed	Total
	US$m	US$m	US$m	US$m

At 1 January 2014 .............................................................	58	7,072	8,071	15,201
Amounts written off ..........................................................	(6)	(1,276)	(2,288)	(3,570)
Recoveries of loans and advances previously written off ....	-	74	483	557
Charge to income statement ..............................................	10	548	1,467	2,025
Exchange and other movements22 ......................................	1	73	(254)	(180)

At 30 June 2014 ................................................................	63	6,491	7,479	14,033

Impairment allowances:
on loans and advances to customers ................................		6,491	7,479	13,970
- personal ..................................................................		534	5,372	5,906
- corporate and commercial .......................................		5,708	1,978	7,686
- financial ..................................................................		249	129	378

as a percentage of loans and advances20,21 .......................	0.05	0.61	0.71	1.19

At 1 January 2013 .............................................................	57	6,572	9,540	16,169
Amounts written off ..........................................................	(6)	(823)	(2,614)	(3,443)
Recoveries of loans and advances previously written off ....	-	100	539	639
Charge to income statement ..............................................	-	1,121	2,068	3,189
Exchange and other movements22 ......................................	(1)	(208)	(734)	(943)

At 30 June 2013 ................................................................	50	6,762	8,799	15,611

Impairment allowances:
on loans and advances to customers ................................		6,762	8,799	15,561
- personal ..................................................................		586	6,798	7,384
- corporate and commercial .......................................		5,785	1,925	7,710
- financial ..................................................................		391	76	467

as a percentage of loans and advances20,21 .......................	0.04	0.71	0.92	1.45

At 1 July 2013 ...................................................................	50	6,762	8,799	15,611
Amounts written off ..........................................................	2	(1,114)	(2,100)	(3,212)
Recoveries of loans and advances previously written off ....	-	109	548	657
Charge to income statement ..............................................	5	1,194	1,660	2,859
Exchange and other movements22 ......................................	1	121	(836)	(714)

At 31 December 2013 ........................................................	58	7,072	8,071	15,201

Impairment allowances:
on loans and advances to customers ................................		7,072	8,071	15,143
- personal ..................................................................		589	6,013	6,602
- corporate and commercial .......................................		6,096	1,963	8,059
- financial ..................................................................		387	95	482

as a percentage of loans and advances20,21 .......................	0.05	0.70	0.80	1.35

For footnotes, see page 172.

Charge for impairment losses as a percentage of average gross loans and advances to customers by geographical region1

	Europe	Asia9	MENA	North America	Latin America	Total
	%	%	%	%	%	%
Half-year to 30 June 2014
New allowances net of allowance releases ....	0.39	0.17	(0.23)	0.71	4.72	0.55
Recoveries ...................................................	(0.15)	(0.04)	(0.17)	(0.10)	(0.49)	(0.12)

Total charge for impairment losses .............	0.24	0.13	(0.40)	0.61	4.23	0.43

Amount written off net of recoveries ..........	0.61	0.11	0.38	1.11	3.74	0.65

Half-year to 30 June 2013
New allowances net of allowance releases ....	0.68	0.17	(0.10)	1.16	6.11	0.86
Recoveries ...................................................	(0.16)	(0.05)	(0.23)	(0.10)	(0.63)	(0.14)

Total charge for impairment losses .............	0.52	0.12	(0.33)	1.06	5.48	0.72

Amount written off net of recoveries ..........	0.35	0.12	0.36	1.43	3.69	0.63

Half-year to 31 December 2013
New allowances net of allowance releases ....	0.64	0.24	0.20	0.84	5.51	0.78
Recoveries ...................................................	(0.19)	(0.05)	(0.36)	(0.08)	(0.49)	(0.15)

Total charge for impairment losses .............	0.45	0.19	(0.16)	0.76	5.02	0.63

Amount written off net of recoveries ..........	0.50	0.12	0.42	0.77	3.54	0.57

For footnotes, see page 172.

Loans and advances to customers are excluded from average balances when reclassified to 'Assets held for sale'.

Reconciliation of reported and constant currency changes by geographical region

	31 Dec 13 as reported	Currency translation adjustment23	31 Dec 13 at 30 Jun 14 exchange rates	Movement on a constant currency basis	30 Jun 14 as reported	Reported change24	Constant currency change24
	US$m	US$m	US$m	US$m	US$m	%	%
Impaired loans
Europe ..........................	13,228	217	13,445	(1,453)	11,992	(9)	(11)
Asia9 .............................	1,623	30	1,653	128	1,781	10	8
Middle East and North Africa .......................	2,285	(4)	2,281	(59)	2,222	(3)	(3)
North America .............	15,123	(2)	15,121	(1,419)	13,702	(9)	(9)
Latin America ..............	4,244	161	4,405	(166)	4,239	-	(4)

	36,503	402	36,905	(2,969)	33,936

Impairment allowances
Europe ..........................	5,598	107	5,705	(732)	4,973	(11)	(13)
Asia9 .............................	1,214	15	1,229	7	1,236	2	1
Middle East and North Africa ...........................	1,583	(3)	1,580	(98)	1,482	(6)	(6)
North America .............	4,242	(2)	4,240	(654)	3,586	(15)	(15)
Latin America ..............	2,564	120	2,684	72	2,756	7	3

	15,201	237	15,438	(1,405)	14,033

For footnotes, see page 172.

Concentration of exposure

Concentrations of credit risk are described in the Appendix to Risk on page 273 of the Annual Report and Accounts 2013.

The commentary that follows is on a reported basis.

The geographical diversification of our lending portfolio and our broad range of global businesses and products ensured that we did not overly depend on a few markets to generate growth in the first half of 2014. This diversification also supported our strategies for growth in faster-growing regions and markets with international connectivity. An analysis of credit quality is provided on page 120.

Financial investments

Our holdings of available-for-sale government and government agency debt securities, corporate debt securities, ABSs and other securities were spread over a wide range of issuers and geographical regions, with 13% invested in securities issued by banks and other financial institutions and 73% in government or quasi-government debt. We also held assets backing insurance and investment contracts. For an analysis of financial investments, see Note 12 on the Financial Statements.

Trading assets

	At 30 Jun	At 30 Jun	At 31 Dec
	2014	2013	2013
	US$bn	US$bn	US$bn

Trading securities25 ........	173	218	163
Loans and advances tobanks .........................	41	97	28
Loans and advances to customers ..................	59	118	48

	273	433	239

For footnote, see page 172.

Trading securities remained the largest concentration within trading assets at 63%, compared with 68% at the end of 2013. The largest concentration within the trading securities portfolio was in government and government agency debt securities. We had significant exposures to US Treasury and government agency debt securities (US$27bn) and UK (US$9bn) and Hong Kong (US$5bn) government debt securities.

Derivatives

Derivative assets were US$270bn at 30 June 2014 (31 December 2013: US$282bn), of which the largest concentrations were interest rate and, to a lesser extent, foreign exchange derivatives. Our exposure to derivatives decreased by 4% reflecting upward movements in yield curves in major currencies which led to a decline in the fair value of interest rate contracts, largely in Europe, as well as a fall in Asia relating to foreign exchange derivatives, in part due to maturities. This was partly offset by a reduction in netting. For an analysis of derivatives, see Note 10 on the Financial Statements.

Loans and advances

Gross loans and advances to customers (excluding the financial sector) of US$1,008bn at 30 June 2014 increased by US$51bn compared with 31 December 2013 on a reported basis. On a constant currency basis they were US$38bn higher.

Gross loans and advances by industry sector1

	At 31 December 2013	Currency effect	Movement	At 30 June 2014
	US$m	US$m	US$m	US$m

Personal .............................................................................	410,728	6,021	(997)	415,752
- first lien residential mortgages5 ...................................	299,875	5,025	535	305,435
- other personal15 ..........................................................	110,853	996	(1,532)	110,317

Corporate and commercial .................................................	543,265	7,217	38,949	589,431
- manufacturing ............................................................	113,850	1,903	14,413	130,166
- international trade and services ..................................	184,668	2,325	5,255	192,248
- commercial real estate ................................................	74,846	786	(367)	75,265
- other property-related ................................................	44,832	296	5,631	50,759
- government ................................................................	7,277	45	(565)	6,757
- other commercial10 .....................................................	117,792	1,862	14,582	134,236

Financial ............................................................................	50,523	717	2,268	53,508
- non-bank financial institutions ...................................	48,537	700	1,085	50,322
- settlement accounts ....................................................	1,986	17	1,183	3,186

Asset-backed securities reclassified .....................................	2,716	82	(278)	2,520

Total gross loans and advances to customers (A)26 .............	1,007,232	14,037	39,942	1,061,211

Gross loans and advances to banks ......................................	120,104	525	6,821	127,450

Total gross loans and advances ...........................................	1,127,336	14,562	46,763	1,188,661

Impaired loans and advances to customers ..........................	36,428	400	(2,948)	33,880
- as a percentage of (A) ................................................	3.6			3.2

Impairment allowances on loans and advances to customers .......................................................................................	15,143	236	(1,409)	13,970
- as a percentage of (A) ................................................	1.5			1.3

	Half-year to 30 June 2013			Half-year to30 June 2014
	US$m			US$m

Charge for impairment losses in the period ........................	3,189	(102)	(1,062)	2,025
- new allowances net of allowance releases ....................	3,828	(98)	(1,149)	2,581
- recoveries ...................................................................	(639)	(4)	87	(556)

For footnotes, see page 172.

The following commentary is on a constant currency basis.

At 39% of gross lending to customers at 30 June 2014, personal lending balances were broadly in line with 31 December 2013 at US$416bn. Movements in these balances are explained under 'Total personal lending' (see page 113). First lien residential mortgage lending continued to represent the Group's largest concentration in a single exposure type, the most significant balances being in the UK (44%), Hong Kong (18%) and the US (13%).

Corporate and commercial lending was 56% of gross lending to customers at 30 June 2014, representing our largest lending category. International trade and services was the biggest portion of the corporate and commercial lending category, which increased by 3% compared with 31 December 2013, driven by growth in Europe, the Middle East and North Africa and North America.

Commercial real estate lending represented 7% of total gross lending to customers, which was broadly unchanged from December 2013. The main concentrations of commercial real estate lending were in Hong Kong and the UK.

Lending to non-bank financial institutions was US$50bn, an increase of US$1.1bn compared with 31 December 2013 primarily due to a US$2.3bn increase in Asia, partly offset by a US$1.5bn reduction in North America. Our exposure was spread across a range of institutions, with the most significant exposures in the UK, Hong Kong and the US.

Loans and advances to banks were widely distributed across many countries and increased by 6%. This was driven by higher placements with financial institutions in Europe, the Middle East and North Africa and Latin America.

The following tables analyse loans by industry sector and by the location of the principal operations of the lending subsidiary or, in the case of the operations of The Hongkong and Shanghai Banking Corporation, HSBC Bank plc, HSBC Bank Middle East and HSBC Bank USA, by the location of the lending branch. The commentary on these loans and advances can be found in the 'Total personal lending' and 'Wholesale lending' sections on pages 113 and 118, respectively.

Gross loans and advances to customers by industry sector and by geographical region1

	Gross loans and advances to customers
	Europe	Asia9	MENA	North America	Latin America	Total	As a % of total gross
	US$m	US$m	US$m	US$m	US$m	US$m	loans
At 30 June 2014
Personal .............................	194,898	129,680	6,553	69,573	15,048	415,752	39.2
- first lien residential mortgages5 ......................	144,225	95,489	2,543	58,677	4,501	305,435	28.8
- other personal15 ..........	50,673	34,191	4,010	10,896	10,547	110,317	10.4

Corporate and commercial .	257,715	221,852	20,983	55,916	32,965	589,431	55.5
- manufacturing .............	65,374	35,210	2,445	12,941	14,196	130,166	12.3
- international trade and services ...........................	79,981	80,574	10,072	13,087	8,534	192,248	18.1
- commercial real estate	30,935	34,727	434	6,677	2,492	75,265	7.1
- other property-related	7,444	32,730	1,593	8,644	348	50,759	4.8
- government ................	2,404	1,082	1,696	568	1,007	6,757	0.6
- other commercial10 .....	71,577	37,529	4,743	13,999	6,388	134,236	12.6

Financial ............................	29,603	12,091	2,838	7,579	1,397	53,508	5.0
- non-bank financial institutions .....................	26,990	11,686	2,837	7,579	1,230	50,322	4.7
- settlement accounts ....	2,613	405	1	-	167	3,186	0.3

Asset-backed securities reclassified ......................	2,382	-	-	138	-	2,520	0.3

Total gross loans and advances to customers (A)26 ................................	484,598	363,623	30,374	133,206	49,410	1,061,211	100.0

Percentage of (A) by geographicalregion ..............................	45.6	34.3	2.9	12.5	4.7	100.0

Impaired loans ....................	11,955	1,781	2,203	13,702	4,239	33,880
- as a percentage of (A) ...	2.5	0.5	7.3	10.3	8.6	3.2
-....
Total impairment allowances ..........................	4,928	1,236	1,464	3,586	2,756	13,970
- as a percentage of (A) ...	1.0	0.3	4.8	2.7	5.6	1.3

At 30 June 2013
Personal .............................	173,270	120,822	6,377	78,959	15,081	394,509	41.4
- first lien residential mortgages5 ......................	127,434	90,080	2,296	66,277	3,561	289,648	30.4
- other personal15 ..........	45,836	30,742	4,081	12,682	11,520	104,861	11.0

Corporate and commercial .	211,128	198,457	21,416	48,327	30,451	509,779	53.4
- manufacturing .............	46,202	30,244	3,409	9,609	12,128	101,592	10.6
- international trade and services ...........................	66,317	77,798	9,458	13,082	7,771	174,426	18.3
- commercial real estate	30,764	33,416	898	6,064	2,328	73,470	7.7
- other property-related	7,403	23,715	1,526	7,725	285	40,654	4.3
- government ................	1,834	3,220	1,664	348	1,431	8,497	0.9
- other commercial10 .....	58,608	30,064	4,461	11,499	6,508	111,140	11.6

Financial ............................	26,895	8,549	1,822	7,470	1,365	46,101	4.8
- non-bank financial institutions .....................	25,361	7,789	1,821	7,470	1,274	43,715	4.6
- settlement accounts ....	1,534	760	1	-	91	2,386	0.2

Asset-backed securities reclassified ......................	3,319	-	-	147	-	3,466	0.4

Total gross loans and advances to customers (B)26 ................................	414,612	327,828	29,615	134,903	46,897	953,855	100.0

Percentage of (B) by geographicalregion ..............................	43.5	34.4	3.1	14.1	4.9	100.0

Impaired loans ....................	12,217	1,541	2,314	18,688	3,360	38,120
- as a percentage of (B) ..	2.9	0.5	7.8	13.9	7.2	4.0
-....
Total impairment allowances ..........................	5,341	1,145	1,681	5,042	2,352	15,561
- as a percentage of (B) ..	1.3	0.3	5.7	3.7	5.0	1.6

	Gross loans and advances to customers
	Europe	Asia9	MENA	North America	Latin America	Total	As a % of total gross
	US$m	US$m	US$m	US$m	US$m	US$m	loans
At 31 December 2013
Personal ..............................	192,107	124,529	6,484	72,690	14,918	410,728	40.8
- first lien residential mortgages5 .......................	140,474	92,047	2,451	60,955	3,948	299,875	29.8
- other personal15 ...........	51,633	32,482	4,033	11,735	10,970	110,853	11.0
-.....
Corporate and commercial ...	239,116	203,894	19,760	50,307	30,188	543,265	53.9
- manufacturing ..............	55,920	30,758	3,180	11,778	12,214	113,850	11.3
- international trade and services ............................	76,700	79,368	8,629	11,676	8,295	184,668	18.3
- commercial real estate .	31,326	34,560	639	5,900	2,421	74,846	7.4
- other property-related .	7,308	27,147	1,333	8,716	328	44,832	4.5
- government .................	3,340	1,021	1,443	499	974	7,277	0.7
- other commercial10 ......	64,522	31,040	4,536	11,738	5,956	117,792	11.7
-....
Financial ..............................	27,872	9,688	2,532	9,055	1,376	50,523	5.0
- non-bank financial institutions .......................	26,314	9,359	2,532	9,055	1,277	48,537	4.8
- settlement accounts .....	1,558	329	-	-	99	1,986	0.2
-....
Asset-backed securities reclassified ...........................	2,578	-	-	138	-	2,716	0.3
-.....
Total gross loans and advances to customers (C)26 .................................	461,673	338,111	28,776	132,190	46,482	1,007,232	100.0

Percentage of (C) by geographicalregion ..............................	45.8	33.6	2.9	13.1	4.6	100.0

Impaired loans .....................	13,187	1,623	2,265	15,109	4,244	36,428
- as a percentage of (C) ..	2.9	0.5	7.9	11.4	9.1	3.6

Total impairment allowances .............................................	5,563	1,214	1,565	4,237	2,564	15,143
- as a percentage of (C) ..	1.2	0.4	5.4	3.2	5.5	1.5

For footnotes, see page 172.

Loans and advances to banks by geographical region1

	Europe	Asia9	MENA	North America	Latin America	Total	Impair- ment allowances27
	US$m	US$m	US$m	US$m	US$m	US$m	US$m

At 30 June 2014 ...........................	27,763	72,222	8,644	6,252	12,569	127,450	(63)
At 30 June 2013 .............................	26,741	72,483	9,054	8,614	10,968	127,860	(50)
At 31 December 2013 ....................	24,273	72,814	6,419	6,420	10,178	120,104	(58)

For footnotes, see page 172.

Reverse repos - non-trading by geographical region

Following the change in balance sheet presentation explained on page 41, non-trading reverse repos are presented separately on the face of the balance sheet and are no longer included in 'Loans and advances to customers' and 'Loans and advances to banks'.Comparative data have been re‑presented accordingly. As a result, any analysis in the Credit Risk section that references loans and advances to customers or banks excludes non-trading reverse repos to customers or banks, respectively. For reference, the amount of non-trading reverse repos to customers and banks is set out below.

	Europe	Asia9	MENA	North America	Latin America	Total
	US$m	US$m	US$m	US$m	US$m	US$m

At 30 June 2014
With customers ...................................	37,095	6,463	-	37,152	-	80,710
With banks ..........................................	63,749	23,199	20	24,851	5,772	117,591

	100,844	29,662	20	62,003	5,772	198,301

Reverse repos - non-trading by geographical region (continued)

	Europe	Asia9	MENA	North America	Latin America	Total
	US$m	US$m	US$m	US$m	US$m	US$m

At 30 June 2013
With customers ...................................	24,165	2,275	-	4,633	15	31,088
With banks ..........................................	41,540	9,775	400	3,204	2,393	57,312

	65,705	12,050	400	7,837	2,408	88,400

At 31 December 2013
With customers ...................................	48,091	6,448	-	33,676	-	88,215
With banks ..........................................	49,631	12,973	24	23,744	5,103	91,475

	97,722	19,421	24	57,420	5,103	179,690

For footnote, see page 172.

Gross loans and advances to customers by country1

	First lien residential mortgages US$m	Other personal US$m	Property- related US$m	Commercial, international trade and other US$m		Total US$m
At 30 June 2014
Europe .....................................................	144,225	50,673	38,379		251,321	484,598
UK .......................................................	135,701	22,121	28,124		204,624	390,570
France ..................................................	3,131	14,177	8,322		23,292	48,922
Germany ..............................................	6	205	146		8,080	8,437
Malta ...................................................	2,030	505	391		1,613	4,539
Switzerland ...........................................	352	8,189	248		461	9,250
Turkey .................................................	788	3,915	276		4,368	9,347
Other ...................................................	2,217	1,561	872		8,883	13,533

Asia9 ........................................................	95,489	34,191	67,457		166,486	363,623
Hong Kong ..........................................	54,988	21,777	49,209		84,002	209,976
Australia ..............................................	10,214	915	2,805		7,135	21,069
India ....................................................	1,169	303	593		4,993	7,058
Indonesia .............................................	70	469	75		5,632	6,246
Mainland China ....................................	5,516	151	6,228		24,349	36,244
Malaysia ..............................................	5,463	1,892	1,988		5,181	14,524
Singapore .............................................	10,330	6,118	4,351		12,803	33,602
Taiwan .................................................	4,193	691	127		6,960	11,971
Other ...................................................	3,546	1,875	2,081		15,431	22,933

Middle East and North Africa (excluding Saudi Arabia) .......................	2,543	4,010	2,027		21,794	30,374
Egypt ...................................................	1	493	104		2,264	2,862
Qatar ...................................................	12	367	318		1,333	2,030
UAE.....................................................	2,168	1,815	1,314		13,379	18,676
Other ...................................................	362	1,335	291		4,818	6,806

North America ........................................	58,677	10,896	15,321		48,312	133,206
US.........................................................	39,939	5,842	10,609		34,279	90,669
Canada..................................................	17,174	4,769	4,210		13,064	39,217
Bermuda................................................	1,564	285	502		969	3,320

Latin America..........................................	4,501	10,547	2,840		31,522	49,410
Argentina .............................................	16	1,158	84		1,837	3,095
Brazil ...................................................	2,232	6,360	1,273		19,555	29,420
Mexico ................................................	2,155	2,987	1,428		9,128	15,698
Other ...................................................	98	42	55		1,002	1,197


	305,435	110,317	126,024		519,435	1,061,211

	First lien residential mortgages US$m	Other personal US$m	Property- related US$m	Commercial, international trade and other US$m		Total US$m
At 30 June 2013
Europe .....................................................	127,434	45,836	38,167		203,175	414,612
UK .......................................................	120,740	20,395	28,615		160,347	330,097
France ..................................................	2,563	11,533	7,775		23,581	45,452
Germany ..............................................	6	193	126		5,488	5,813
Malta ...................................................	1,848	531	454		1,560	4,393
Switzerland ...........................................	350	8,506	94		288	9,238
Turkey .................................................	952	4,152	280		3,908	9,292
Other ...................................................	975	526	823		8,003	10,327

Asia9 ........................................................	90,080	30,742	57,131		149,875	327,828
Hong Kong ..........................................	53,475	18,813	41,340		74,594	188,222
Australia ..............................................	9,183	1,284	2,064		6,350	18,881
India ....................................................	1,060	360	455		4,578	6,453
Indonesia .............................................	81	526	104		5,592	6,303
Mainland China ....................................	4,210	285	5,226		22,658	32,379
Malaysia ..............................................	5,079	2,027	1,900		5,917	14,923
Singapore .............................................	9,999	4,840	4,060		10,980	29,879
Taiwan .................................................	3,495	631	107		4,500	8,733
Other ...................................................	3,498	1,976	1,875		14,706	22,055

Middle East and North Africa (excluding Saudi Arabia) .......................	2,296	4,081	2,424		20,814	29,615
Egypt ...................................................	1	479	150		2,455	3,085
Qatar ...................................................	10	379	263		1,000	1,652
UAE ....................................................	1,879	1,826	1,391		12,457	17,553
Other ...................................................	406	1,397	620		4,902	7,325

North America ........................................	66,277	12,682	13,789		42,155	134,903
US ........................................................	47,186	6,805	9,532		27,370	90,893
Canada .................................................	17,455	5,540	3,679		13,607	40,281
Bermuda ...............................................	1,636	337	578		1,178	3,729

Latin America .........................................	3,561	11,520	2,613		29,203	46,897
Argentina .............................................	25	1,487	66		2,340	3,918
Brazil ...................................................	1,715	7,052	1,193		17,715	27,675
Mexico ................................................	1,821	2,981	1,336		8,440	14,578
Other ...................................................	-	-	18		708	726


	289,648	104,861	114,124		445,222	953,855

Gross loans and advances to customers by country (continued)

	First lien residential mortgages US$m	Other personal US$m	Property- related US$m	Commercial, international trade and other US$m		Total US$m

At 31 December 2013
Europe .....................................................	140,474	51,633	38,634		230,932	461,673
UK .......................................................	132,174	22,913	28,127		185,534	368,748
France ..................................................	2,661	13,840	8,442		23,962	48,905
Germany ..............................................	7	218	127		6,361	6,713
Malta ...................................................	2,007	526	434		1,627	4,594
Switzerland ...........................................	364	8,616	269		320	9,569
Turkey .................................................	833	4,002	305		4,059	9,199
Other ...................................................	2,428	1,518	930		9,069	13,945

Asia9 ........................................................	92,047	32,482	61,707		151,875	338,111
Hong Kong ..........................................	53,762	19,794	44,904		75,547	194,007
Australia ..............................................	9,468	1,236	2,511		7,138	20,353
India ....................................................	1,080	297	425		4,231	6,033
Indonesia .............................................	69	447	78		5,361	5,955
Mainland China ....................................	4,880	300	5,808		22,149	33,137
Malaysia ..............................................	5,140	1,994	1,997		5,420	14,551
Singapore .............................................	10,283	5,754	3,953		12,188	32,178
Taiwan .................................................	3,797	660	158		5,198	9,813
Other ...................................................	3,568	2,000	1,873		14,643	22,084

Middle East and North Africa(excluding Saudi Arabia) .......................	2,451	4,033	1,972		20,320	28,776
Egypt ...................................................	1	477	146		2,232	2,856
Qatar ...................................................	13	377	261		1,245	1,896
UAE ....................................................	2,082	1,842	1,331		12,344	17,599
Other ...................................................	355	1,337	234		4,499	6,425

North America ........................................	60,955	11,735	14,616		44,884	132,190
US ........................................................	42,317	6,257	10,174		30,952	89,700
Canada .................................................	17,036	5,116	3,912		13,079	39,143
Bermuda ...............................................	1,602	362	530		853	3,347

Latin America .........................................	3,948	10,970	2,749		28,815	46,482
Argentina .............................................	20	1,425	62		2,103	3,610
Brazil ...................................................	1,811	6,466	1,268		17,132	26,677
Mexico ................................................	2,117	3,079	1,398		8,994	15,588
Other ...................................................	-	-	21		586	607


	299,875	110,853	119,678		476,826	1,007,232

For footnotes, see page 172.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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