Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001089113-25-000056
Chunk: 42

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 42
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     — |    16,998 |                -8 |      -5 |     -16 |     — |     -29 |            0.1 |     0.4 |     6.5 |     — |   0.2 |
| At Dec 2024                                                                                                                      |                      2,365,477 | 117,824 |  23,976 |    93 | 2,507,370 |            -1,296 |  -2,679 |  -6,171 |   -51 | -10,197 |            0.1 |     2.3 |    25.7 |  54.8 |   0.4 |

1 Represents the maximum amount at risk should the contracts be fully drawn upon and clients default. 2 Purchased or originated credit-impaired financial assets (‘POCI‘). 3 The shift of ‘gross carrying amount’ between stage 1 and 2 arose mainly in Asia from higher average PD for the remaining term at the reporting date, reflecting updates to our PD models and ongoing market challenges. PDs at the reporting date were compared with the PD calculated at origination.

| HSBC Holdings plc Earnings Release 3Q25 on Form 6-K |
| 46                                                  |

Measurement uncertainty and sensitivity analysis of ECL estimates The recognition and measurement of ECL involves the use of significant judgement and estimation. We form multiple scenarios based on economic forecasts and distributional estimates and apply these to credit risk models to estimate future credit losses. The results are then probability-weighted to determine an unbiased ECL estimate. Management assessed the current economic environment, reviewed the latest economic forecasts and discussed key risks before selecting the economic scenarios and their weightings. Management judgemental adjustments are used where modelled allowance for ECL does not fully reflect the identified risks and related uncertainty, or to capture significant late-breaking events. Methodology At 30 September 2025 , four economic scenarios were used to capture the latest economic expectations and to articulate management’s view of the range of risks and potential outcomes. In each quarter, scenarios are updated with the latest economic forecasts and distributional estimates. Three scenarios – the Upside, Central and Downside – are drawn from external consensus forecasts, market data and distributional estimates of the entire range of economic outcomes. The fourth scenario, the Downside 2, represents management’s view of severe downside risks. Scenarios produced to calculate ECL are aligned to HSBC’s top