Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001654954-25-012267
Chunk: 53

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 53
---
 in buyer sentiment.

In the third quarter of 2025, management adjustments to ECL were applied to reflect sector or portfolio risks that are not fully captured by our models. We continue to monitor, and seek to manage, the potential implications of all the above developments on our customers and our business.

At 30 September 2025 our CET1 ratio decreased to 14.5% from 14.6% at 30 June 2025, and our LCR was 139%, down from 140% at 30 June 2025.

u For further details of our Central and other economic scenarios, see page 46 .

u For further details on our CET1 ratio, see 'Capital risk' on page 53 .

Credit risk

Summary of credit risk

At 30 September 2025, gross loans and advances to customers of $993bn were $53bn higher on a reported basis compared with 31 December 2024. This included total favourable foreign exchange movements of $40.1bn.

On a constant currency basis, the increase of $12.9bn was driven by higher balances in our UK business segment (up $13.0bn), in IWPB (up $7.1bn) and CIB (up $5.6bn). This was partly offset by decreases in our Hong Kong business segment (down $4.8bn) and Corporate Centre (down $7.9bn).

In our UK business, the increase was primarily driven by continued growth in mortgage balances (up $6.1bn), as well as growth in commercial customer lending (up $5.7bn).

The increase in IWPB was driven by higher 'Other personal lending' Private Banking balances in our entities in Asia.

The increase in CIB was driven by higher balances in our entities in Asia, the Middle East and Europe across several industries.

The decrease in our Hong Kong business was primarily driven by lower commercial customer lending, reflecting muted customer demand.

The decrease in Corporate Centre was driven by the reclassification to 'Assets held for sale' of our retained portfolio of home and other loans associated with the sale of our retail banking operations in France.

There was an increase in stage 2 loans and advances to banks and customers of $10.0bn on a constant currency basis. This was mainly driven by updates to our wholesale probability of default ('PD') models at 2Q25, which resulted in a shift of balances between stage 1 and 2, mainly in Asia. The