Finance lease receivables

12 Months Ended

Dec. 31, 2020

Leases1 [Abstract]

Finance lease receivables

33 Finance lease receivables

HSBC leases a variety of assets to third parties under finance leases, including transport assets (such as aircraft), property and general plant and machinery. At the end of lease terms, assets may be sold to third parties or leased for further terms. Rentals are calculated to recover the cost of assets less their residual value, and earn finance income.

	2020			2019
	Total future minimum payments	Unearned finance income	Present value	Total future minimum payments	Unearned finance income	Present value
	$m	$m	$m	$m	$m	$m
Lease receivables:
No later than one year	3,108	(257)	2,851	1,674	(157)	1,517
One to two years	2,476	(196)	2,280	1,634	(155)	1,479
Two to three years	2,055	(143)	1,912	1,889	(151)	1,738
Three to four years	1,380	(109)	1,271	1,704	(136)	1,568
Four to five years	787	(80)	707	1,558	(132)	1,426
Later than one year and no later than five years	6,698	(528)	6,170	6,785	(574)	6,211
Later than five years	4,221	(451)	3,770	6,136	(614)	5,522
At 31 Dec	14,027	(1,236)	12,791	14,595	(1,345)	13,250