Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 330

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 330
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 PRA. 3 HSBC Bank plc includes overseas branches and special purpose entities consolidated by HSBC for financial statements purposes. 4 The Hongkong and Shanghai Banking Corporation – Hong Kong branch represents the material activities of The Hongkong and Shanghai Banking Corporation Limited. It is monitored and controlled for liquidity and funding risk purposes as a stand-alone operating entity. 5 HSBC Singapore includes HSBC Bank Singapore Limited and The Hongkong and Shanghai Banking Corporation – Singapore branch. Liquidity and funding risk is monitored and controlled at country level in line with the local regulator’s approval. Consolidated liquidity metrics Net stable funding ratio We manage funding risk based on the PRA’s NSFR rules. The Group’s NSFR at 31 December 2024, calculated from the average of the four preceding quarters, was 143%.

|                                      |      At1,2 |            |            |
|                                      | 31 Dec2024 | 30 Jun2024 | 31 Dec2023 |
|                                      |        $bn |        $bn |        $bn |
| Total available stable funding ($bn) |      1,523 |      1,544 |      1,602 |
| Total required stable funding ($bn)  |      1,064 |      1,115 |      1,162 |
| NSFR ratio (%)                       |        143 |        138 |        138 |

1 We enhanced our liquidity consolidation process in 2Q24 by revising provisions that addressed historical limitations. As our Group NSFR is reported on an average basis, the benefit of these changes incrementally increased our NSFR by circa 11% during the year by reducing required stable funding. This reduction was partly offset by a rise in financial investments and derivatives activities, resulting in a net 5% increase of NSFR compared with year ended 31 December 2023. 2 We enhanced our calculation process during 1Q24 and our NSFR comparatives have been restated.

| HSBC Holdings plcAnnual Report on Form 20-F | 239 |

Liquidity coverage ratio At 31 December 2024, the average high-quality liquid assets (‘HQLA‘) held at entity level amounted to $790bn (31 December 2023: $795bn). The Group consolidation methodology includes a deduction to reflect the impact of limitations in the transferability of entity liquidity around the Group. That resulted in an adjustment of $141bn to LCR HQLA and $6bn