Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 30

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 30
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 by a reduction in costs following our business disposals in Canada and Argentina.

| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| 15                                                |

| Overview |     | Interim management report |     | Interim condensed consolidatedfinancial statements |     | Additional information |

Corporate Centre The results of Corporate Centre primarily comprise the financial impact of certain acquisitions and disposals, and the share of profit, dilution and impairment loss impacts from interests in our associates and joint ventures. It also includes Central Treasury, stewardship costs and consolidation adjustments.

Financial performance Profit before tax of $0.6bn was $5.4bn lower than in 1H24 on a constant currency basis. This included a $1.1bn loss from the dilution of our shareholding and a $1.0bn impairment to the carrying value of the Group’s interest in BoCom. The Group’s interest in BoCom reduced from 19.03% to 16.00% following the completion of a capital issuance by BoCom on 17 June 2025. The dilution of the Group’s interest resulted in a pre-tax loss of $1.1bn, recognised in other operating expense in the Group’s consolidated income statement. The loss is not deductible for tax purposes as a consequence of our shareholding in BoCom being held for long-term investment purposes. The Group’s investment in BoCom continues to be classified as an associate. In addition, the Group performed an impairment test on the carrying amount at 30 June 2025, which resulted in an impairment of $1.0bn, as the recoverable amount as determined by a value-in-use calculation was lower than the carrying value, recognised within impairment of interest in associates. Consistent with prior periods, our value-in-use calculation uses both historical experience and market participant views to estimate future cash flows, relevant discount rates and associated capital assumptions. Neither the dilution loss nor the impairment loss had a material impact on HSBC’s capital ratios or distribution capacity. Both amounts are treated as a material notable item, and therefore are excluded from our dividend payout ratio. We remain strategically committed to mainland China and continue our valued, strategic partnership with BoCom. The reduction in profit before tax also included an adverse impact from the non- recurrence of 1H24 notable items in revenue of $3.5bn related to business disposals in Canada and Argentina. Revenue was $4.4bn lower on a constant currency basis. This primarily reflected the impact of notable