Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 157

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 157
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 dividend payout ratio.

Use of alternative performance measures Our reported results are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (‘IFRS Accounting Standards’), as detailed in the financial statements starting on page 363 . To measure our performance, we supplement our IFRS Accounting Standards figures with non-IFRS Accounting Standards measures, which constitute alternative performance measures under European Securities and Markets Authority guidance and non-GAAP financial measures defined in and presented in accordance with US Securities and Exchange Commission rules and regulations. These measures include those derived from our reported results that eliminate factors distorting year-on-year comparisons. The ‘constant currency performance’ measure used throughout this report is described below. Definitions and calculations of other alternative performance measures

| HSBC Holdings plcAnnual Report on Form 20-F | 85 |

are included in our ‘Reconciliation of alternative performance measures’ on page 129 . Also, the insurance-specific non-GAAP measure ‘Insurance equity plus CSM net of tax‘, is provided on page 115 , along with its definition and reconciliation to the GAAP measure. All alternative performance measures are reconciled to the closest reported performance measure. The global business segmental results are presented on a constant currency basis in accordance with IFRS 8 ‘Operating Segments’ as detailed in Note 10 ‘Segmental analysis’ on page 405 . Constant currency performance Constant currency performance is computed by adjusting reported results for the effects of foreign currency translation differences, which distort year-on-year comparisons. We consider constant currency performance to provide useful information for investors by aligning internal and external reporting, and reflecting how management assesses year-on-year performance. Notable items and material notable items We separately disclose ‘notable items’, which are components of our income statement that management would consider as outside the normal course of business and generally non-recurring in nature. Certain notable items are classified as ‘material notable items’, which are a subset of notable items. Categorisation as a material notable item is dependent on the nature of each item in conjunction with the financial impact on the Group’s income statement. We exclude material notable items when computing our dividend payout ratio target basis. Material notable items currently comprise the sale of our retail operations in France and our banking business in Canada, the sale of our business in Argentina, the acquisition of SVB UK and the impairment of our investment in BoCom. The tables on pages 108 to 110 and pages 122 to 127 detail the effects of notable items on each of our global business segments,