Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 63

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 63
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 the sales of our banking businesses in France and Canada and narrower margins. Compared with 2023, lending balances were broadly stable with growth mainly in mortgages in HSBC UK and our legal entity in the US. This was offset by the reclassification of the France retained loans to Corporate Centre. Unsecured lending balances increased, including in HSBC UK and our legal entities in Asia and Mexico. Deposit balances grew by $24bn, including in our legal entities in Asia and the UK. Other revenue increased by $1.4bn , mainly due to a $1.1bn increase in revenue allocated from Markets Treasury, including from the non-recurrence of 2023 disposal losses on repositioning and risk management, the non- recurrence of a loss on sale of our business in New Zealand in 2023 of $0.1bn and higher interest income earned on own capital. ECL were $1.3bn , an increase of $0.4bn compared with 2023 on a constant currency basis, reflecting higher charges in our legal entity in Mexico, mainly in our unsecured portfolio, due to portfolio growth and unemployment trends. In addition, we had higher charges in our legal entities in Hong Kong and the UK as a result of portfolio growth. Operating expenses of $15.2bn were 6% higher on a constant currency basis, reflecting continued investments in Wealth in Asia, higher spend and investment in technology, higher performance-related pay and from the impact of higher inflation. These were partly offset by continued cost discipline and the impact of the disposals in France and Canada.

| HSBC Holdings plcAnnual Report on Form 20-F | 31 |

Commercial Banking Our CMB business served around 1.2 1 million customers across 48 countries and territories, ranging from small enterprises to large companies operating globally.

Contribution to Group profit before tax $11.9bn 38% Calculation is based on profit before tax of our global businesses excluding Corporate Centre. CMB partnered with businesses around the world, supporting every stage of their growth, international ambitions and sustainability transitions. CMB delivered value to clients through our international network, financing strength, digital capabilities and our universal banking offering, including our global trade and payments solutions. HSBC has been recognised as the World’s best Trade Finance Bank and the World’s best Payments and Treasury Bank (Euromoney Awards) and we continue to invest in capabilities to assist clients in fulfilling their business needs more efficiently. We have completed our first full year of HSBC Innovation Banking with global