HSBC Mexico Financial Report
HSBC Mexico
Administrative expenses and loan impairment charges
Loan impairment charges
MXN m
5,291
HSBC ā
Administrative expenses
MXN m
12,939
1H10
3,202
3,335
10,844
1H11
1H12
11,117
1H10
1H11
1H12
Increased LICs mainly due to a change in the
write-off policy for mortgage loans implemented
in April 2012, generating a one off increase in
loan impairment charges of MXN659m.
Excluding the change in write-off policy, loan
impairment charges decreased 16.4%
compared with the first half of 2011
ā
Cost reduction initiatives implemented in 2011 in
both regional and local operations, such as
rightsizing the regional structures and other
rationalisation programmes, in addition to the
write-off of intangible assets
In June 2012 the bank fully provisioned a fine
imposed by the National Banking and Securities
Commission (CNBV), amounting to MXN379m
Figures in MXN under local gaap
Source: 2Q12 and 2Q11 Press releases, HSBC Mexico
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