Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001654954-25-004763
Chunk: 56

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 56
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 -1.8 |       15.0 |
| RWAs at 31 Mar 20253                           |                                                 143.7 | 139.8 | 367.6 | 86.4 |             81.4 |        34.4 |      853.3 |

1 Constitutes operational risk RWAs balance for the disposal of our retail banking operations in France following receipt of a PRA waiver granted in February 2025.

2 Credit risk foreign exchange movements in this disclosure are computed by retranslating RWAs into US dollars based on the underlying transactional currencies, and other movements in the table are presented on a constant currency basis.

3 RWAs balance includes HSBC Argentina operational risk RWAs due to the averaging calculation and will roll off over future reporting cycles.

RWAs increased by $15.0bn during 1Q25, including a rise of $8.0bn due to foreign currency translation differences. The remaining $7.0bn increase in RWAs was predominantly attributed to asset quality and asset size movements.

Asset size

In our Hong Kong business, RWAs decreased by $1.1bn due to a fall in corporate lending.

In our UK business, RWAs increased by $1.1bn, primarily due to higher corporate lending.

CIB RWAs increased by $4.5bn, primarily due to higher corporate exposures, mainly in India, Singapore, Australia, the US and HSBC Bank plc.

Corporate Centre RWAs increased by $1.4bn, largely driven by higher central bank balances, and lending growth in SAB.

Market risk RWAs decreased by $1.8bn as periods of greater volatility dropped out of the data on which stressed value at risk is calculated, and due to a fall in foreign exchange risk.

Asset quality

The $4.7bn rise in RWAs was primarily due to unfavourable credit risk migrations and portfolio mix changes, mainly in Hong Kong and the UK.

Methodology and policy

The decrease of $1.7bn was primarily due to credit risk parameter refinements in CIB, mainly in Asia and Hong Kong. A further decrease in RWAs was driven by restructuring of securitisation legacy positions in HSBC Bank plc, partly offset by an increase in the Middle East, both in Corporate Centre.

Regulatory and other developments

The Prudential Regulation Authority ('PRA') published the second part of its near-final rules on the UK's implementation of Basel 3.1 on 12