Investor Presentaiton
HSBC Group - Loan impairment charges and expected credit losses
Credit outlook remains stable
Loan impairment charges and expected credit losses, $m
Analysis by stage as at 30 Jun 2018
By global business
RBWM
CMB
GB&M
GPB
Corporate
Centre
254
IAS 39
2Q17
1Q18
IFRS 9
$bn
2Q18
30 Jun 2018
Stage 3 as
Stage 1
Stage 2
Stage 3
Total5
a % of
Total
Loans and advances to customers
898.9
68.8
14.2
982.2
1.4%
417
237
Allowance for ECL
1.3
2.0
5.3
8.7
161
31 Mar 2018
296
240
119
Loans and advances to customers
906.3
68.1
15.4
990.5
1.6%
Allowance for ECL
1.3
2.2
5.7
9.4
119
63
20
(19)
(3)
(1) (2)
(66)
(86)
(119)
◆ Expected credit losses of $237m in 2Q18 related mainly to charges in RBWM,
notably in Mexico and the UK, against our unsecured lending portfolios
◆ North America ECLs benefited from a release in the oil and gas sector
By region, $m
Europe
(14)
60
125
◆ The credit environment remains stable
- of which UK
(16)
56
99
Asia
282
32
84
- of which Hong Kong
231
14
6
MENA
65
3
99
99
North America
(32)
(47)
(187)
Latin America
116
113
116
Total
417
161
237
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