Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001654954-25-012267
Chunk: 24

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 24
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 the third quarter of 2025.

During the fourth quarter of 2025, we expect to recognise certain key impacts from strategic transactions that will be classified as material notable items and are excluded for the purpose of computing our dividend payout ratio. These impacts include an estimated $1.5bn loss on the recycling of the cumulative fair value changes recognised through other comprehensive income to the income statement on completion of the sale of our French retained portfolio of home and certain other loans, which has no incremental impact on CET1 capital. In addition, we expect to recognise an estimated $0.3bn loss on the reclassification as held for sale of our Malta business, an estimated $0.1bn loss on the recycling of reserves associated with our French life insurance business on completion, an estimated $0.1bn gain on the sale of our German private banking business, which completed on 3 October 2025, and an estimated $0.1bn gain on completion of the sale of our Bahrain retail banking business.

Retained portfolio of home and certain other loans in France

Following the sale of our retail banking operations on 1 January 2024, HSBC Continental Europe retained a portfolio of home and certain other loans, with a carrying value of €7.1bn ($8.3bn) at the time of sale. During the fourth quarter of 2024, we began actively marketing the retained portfolio for sale. As a result, on 1 January 2025 we reclassified the portfolio to a hold-to-collect-and-sell business model, measuring it at fair value through other comprehensive income ('FVOCI'). In the fourth quarter of 2024, we entered into non-qualifying economic hedges to hedge interest rate risk on the portfolio and recognised a $0.1bn mark-to-market gain in 'net income from financial instruments held for trading or managed on a fair value basis' in 2025. The disposal group met held for sale criteria in the second quarter of 2025, with balances remaining classified as held for sale at 30 September 2025 of $6.0bn in loans.

On 18 July 2025, HSBC Continental Europe signed a memorandum of understanding with a consortium comprising Rothesay Life plc and CCF regarding the sale of the portfolio. Following the completion of the requisite works council consultation processes, the parties entered into a sale and purchase agreement on 16 October 2025. The transaction is expected to complete in the fourth quarter of 2025, when