Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001654954-25-004763
Chunk: 30

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 30
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| Currency translation on operating expenses notable    
 items                                                 |             - |           1 |           2 |

1 1Q25 includes fair value losses on ADRs in Galicia received as part of the sale consideration for HSBC Argentina; 1Q24 included gains on the disposal of our banking business in Canada, inclusive of foreign exchange hedging of the sale proceeds, the recycling of foreign currency translation and other reserve losses. 1Q24 also included an impairment recognised in relation to the sale of our business in Argentina; 4Q24 included losses on the completion of our disposal of our business in Argentina, including the recycling of foreign currency and other reserve losses.

1Q25 compared with 1Q24

Profit before tax of $0.7bn was $3.5bn lower than in 1Q24 on a constant currency basis. This reduction primarily reflected the non-recurrence of a 1Q24 gain of $4.8bn following the sale of our banking business in Canada, inclusive of fair value gains on the hedging of the sales proceeds and recycling of related reserves. This was partly offset by the non-recurrence of an impairment of $1.1bn in 1Q24 recognised following the classification of our business in Argentina as held for sale.

Revenue of $0.1bn was $3.7bn lower on a constant currency basis, primarily due to the impact of notable items. In 1Q24, these included the impacts related to business disposals in Canada and Argentina, as mentioned above. In 1Q25, notable items included $0.1bn of fair value losses on ADRs in Galicia received as part of the sale consideration for HSBC Argentina.

Banking NII was a net expense of $0.2bn. This was stable compared with 1Q24 on a constant currency basis. Banking NII in 1Q25 excluded the internal cost to fund trading and fair value net assets, predominantly in CIB, of $2.4bn (1Q24: $2.7bn).

Fee and other income of $0.2bn was $0.1bn higher, primarily due to $0.1bn of fair value gains on non-qualifying hedges related to our retained French portfolio of home and certain other loans.

Operating expenses reduced by $0.1bn on a constant currency basis. The reduction included the non-recurrence of a 1Q24