Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001654954-25-012267
Chunk: 18

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 18
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8bn related to our organisational simplification, mainly severance costs that are classified as notable items, and $0.2bn related to strategic transactions. In addition, growth in reported operating expenses included higher planned spend and investment in technology, and the impacts of inflation. These increases were partly offset by reductions following the completion of business disposals in Canada and Argentina, the benefits delivered by our restructuring activities, and a favourable impact from foreign currency translation differences of $36m.

On a constant currency basis, operating expenses increased by $2.7bn or 11%. Target basis operating expenses were $0.7bn or 3% higher than in 9M24 due to higher planned spend and investment in technology and the impacts of inflation.

The number of employees expressed in full-time equivalent staff at 30 September 2025 was 212,409, an increase of 1,105 compared with 31 December 2024. The number of contractors at 30 September 2025 was 4,086, a decrease of 140 from 31 December 2024.

Reported share of profit from associates and joint ventures less impairment of $1.2bn was $1.0bn or 44% lower, primarily due to an impairment loss of $1.0bn recognised on BoCom following our value-in-use assessment made at 30 June 2025. This was partly offset by an increase in the share of profit from Saudi Awwal Bank ('SAB').

Tax expense in 9M25 was a charge of $5.2bn, representing an effective tax rate of 22.3% (9M24: 18.7%). The effective tax rate for 9M25 was increased by the non-deductible impairment and dilution loss in BoCom and legal provisions on which no tax benefit is recorded. Excluding these items, the effective rate for 9M25 was 19.9% (9M24: 21.1%, excluding the impact of the non-taxable gains and losses on the sale of our banking business in Canada and our business in Argentina). The decrease in effective tax rate, excluding these items from 9M24 to 9M25, was primarily the result of movements in uncertain tax positions and prior year adjustments.

Net interest income

|                                 | Nine months ended 
       30 Sep 2025 | 30 Sep 2024 | Quarter ended 
   30 Sep 2025 | 30 Jun 2025