Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 302

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 302
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31 Dec2023                                     |   288,959 |  12,037 |   7,897 |    805 |      5 |   309,703 |     -97 |   309,606 |

1 For the purposes of this disclosure, gross carrying amount is defined as the amortised cost of a financial asset before adjusting for any loss allowance. As such,

the gross carrying amount of debt instruments at FVOCI as presented above will not reconcile to the balance sheet as it excludes fair value gains and losses.

| HSBC Holdings plcAnnual Report on Form 20-F | 199 |

Credit-i mpaired loans (Audited) We determine that a financial instrument is credit impaired and in stage 3 by considering relevant objective evidence, primarily whether: – contractual payments of either principal or interest are past due for more than 90 days; – there are other indications that the borrower is unlikely to pay, such as when a concession has been granted to the borrower for economic or legal reasons relating to the borrower’s financial condition; and – the loan is otherwise considered to be in default. If such unlikeliness to pay is not identified at an earlier stage, it is deemed to occur when an exposure is 90 days past due. Therefore, the definitions of credit impaired and default are aligned as far as possible so that stage 3 represents all loans that are considered defaulted or otherwise credit impaired . Forbearance The following table shows the gross carrying amount and allowance for ECL of the Group’s holdings of forborne loans and advances to customers by industry sector and by stages. A summary of our current policies and practices for forbearance is set out in ‘Credit risk management’ on page 169 .

| Forborne loans and advances to customers at amortised cost by stage allocation |         |                         |      |                |
| Performing forborne                                                            |         | Non-performing forborne |      | Total forborne |
|                                                                                | Stage 2 |                 Stage 3 | POCI |          Total |
|                                                                                |      $m |                      $m |   $m |             $m |
| Gross carrying amount                                                          |         |                         |      |                |
| Personal                                                                       |     545 |                   1,424 |    — |          1,969 |
| –  first lien residential mortgages                                            |     266 |                   1,040 |    — |          1,306 |
| –  second lien residential mortgages                                           |       1 |                       3 |