HSBC saw only a marginal decline in its consumer, corporate and
property leasing arm during 2009, according to latest year end 2009
results.
Its total operating leases, which appear under plant, property
and equipment in its accounts, declined by $223 million YoY to
$13.8 billion.
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Depreciation and impairment of its operating leases totalled
$1.7 billion, just $25 million than in 2008.
Gains on disposals of operating leases totalled $1.03 billion,
$152 billion more than last year.
HSBC’s finance leases, which were detailed in the bank’s
statement under loans and advances to customers, fell 4 percent YoY
to $896 billion.
The bank said it had experience “an increase in average term
lending balances in Europe and Asia”.
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By GlobalDataIt added: “Loan impairment charges rose despite an underlying 9
percent decline in gross loans and advances to customers which was
driven mainly by the run-off of the US consumer finance
portfolios.”
The fall in loans was also linked to a “run-off” of consumer
finance businesses and portfolio sales in its North American
arm.
Vehicle loans and equipment leases linked to HSBC’s multi-seller
conduits, which the bank described as “third-party assets financed
by issuing CP or drawing advances from HSBC”, totalled $3 billion
last year, compared with $3.9 billion the year before.
HSBC’s own lease liabilities do not appear in the bank’s balance
sheet, although they feature in its general and administrative
expenses.
Brendan Malkin
