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

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 28
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 that we have put forward a conditional proposal to privatise Hang Seng Bank through a scheme of arrangement. If approved and implemented, this would result in The Hongkong and Shanghai Banking Corporation Limited acquiring all of the remaining shares of Hang Seng Bank held by the minority shareholders, and the withdrawal of the listing of Hang Seng Bank shares from the Hong Kong Stock Exchange. On approval, a financial liability would be recognised in the Group's consolidated financial statements for the present value of the proposed HK$106.1bn ($13.7bn) purchase consideration, and a corresponding adjustment to equity, net of derecognising the non-controlling interest - which stood at $6.8bn as at 30 September 2025 - would also be recognised.

In a 2009 lawsuit in Luxembourg relating to the Bernard L. Madoff Investment Securities LLC fraud, HSBC Securities Services Luxembourg ('HSSL') is defending a claim brought by Herald Fund SPC ('Herald') for restitution of securities and cash. For prior disclosure on this matter, please refer to page 98 of the HSBC Holdings plc 2025 Interim Report. On 24 October 2025, the Luxembourg Court of Cassation denied HSSL's appeal in respect of Herald's securities restitution claim, but accepted HSSL's appeal in respect of Herald's cash restitution claim. HSSL will now pursue a second appeal before the Luxembourg Court of Appeal. If HSSL is unsuccessful in that second appeal, it will contest the amount HSSL is required to pay in subsequent proceedings before the Court of Appeal. Following this development, we recognised a $1.1bn provision, as an adjusting post-balance sheet event, in our consolidated financial results for the third quarter of 2025, an impact of around 15 basis points on the Group's CET1 capital ratio. Given the pendency of the second appeal and the complexities and uncertainties associated with determining the quantum of restitution, the eventual financial impact could be significantly different. The provision was classified as a material notable item and will not impact 2025 RoTE excluding notable items or any dividend.

### Business segments
Our business segments - Hong Kong, UK, Corporate and Institutional Banking and International Wealth and Premier Banking - along with Corporate Centre - are our reportable segments under IFRS 8 'Operating Segments'.

The Group Operating Committee is considered the Chief Operating Decision Maker ('CODM') for the purposes of identifying the Group's reportable segments. Business segment results are assessed by the CODM on the basis