Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 237

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 237
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 also ’We could incur losses or be required to hold additional capital as a result of model limitations or failure‘. The occurrence of any of these events or circumstances could have a material adverse effect on our business, financial condition, results of operations, prospects and customers. We are subject to political, social and other risks in the countries in which we operate We operate through an international network of subsidiaries and affiliates across countries and territories around the world. Our global operations are subject to potentially unfavourable political, social, environmental and economic developments in such jurisdictions, which may include: – coups, armed conflict or acts of terrorism; – political and/or social instability; – geopolitical tensions; – epidemics and pandemics (such as the Covid-19 pandemic); – climate change, acts of God and natural disasters (such as floods and hurricanes); and – infrastructure issues, such as transportation and power failures. Each of the above could impact RWAs, and the financial losses caused by any of these risk events or developments could impair asset values and the creditworthiness of customers. These risk events or developments may also give rise to disruption to the Group’s services and some may result in physical damage to our operations and/or risks to the safety of our personnel and customers. Geopolitical tensions could have significant ramifications for the Group and its customers. In particular: – While globalisation appears to remain deeply embedded in the international system, it is increasingly challenged by protectionism, including trade tariffs, which could contribute to weaker global trade, potentially affecting HSBC’s business. The broad geographic footprint and coverage of HSBC may make us and our customers susceptible to protectionist measures taken by national governments and authorities, including imposition of trade tariffs, restrictions on market access, restrictions on the ability to transact on a cross-border basis, expropriation, restrictions on international ownership, interest rate caps, limits on dividend flows and increases in taxation. There may be uncertainty as to the conflicting nature of such measures, their duration, the potential for escalation, and their potential impact on global economies; – Uncertainty about the scope, duration and potential for escalation or resurgence of the conflict in the Middle East presents global economic and political implications. (For further details, see ’Economic and market conditions and geopolitical developments may adversely affect our financial conditions and results’); – The US and UK imposed additional sanctions on Iran in 2024 in response to Iran's activities and the increase in tensions between Israel and Iran. Further sanctions may be imposed and could increase the risk within our operations; – The