Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 20

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 20
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 On a constant currency basis, profit before tax of $15.8bn was $5.7bn lower than in 1H24, and excluding notable items it increased by $0.9bn or 5% . Reported profit after tax of $12.4bn was $5.2bn or 30% lower compared with 1H24. Revenue Reported revenue of $34.1bn was $3.2bn or 9% lower, reflecting a net adverse movement in notable items of $4.8bn , primarily relating to the non-recurrence of net gains in 1H24 related to our disposals in Canada and Argentina. It also included a dilution loss of $1.1bn following the completion of BoCom’s capital issuance, which reduced our interest from 19.03% to 16.00%. Revenue excluding notable items increased, reflecting higher fee and other income in Wealth. There were strong performances in Insurance, due to a higher contractual service margin (‘CSM’) release, as well as growth in our Private Bank and investment distribution from higher customer activity. Fee and other income rose in Wholesale Transaction Banking, particularly in Global Foreign Exchange from elevated market volatility, as well as in Debt and Equity Markets. NII fell by $0.1bn compared with 1H24, including an adverse impact of foreign currency translation differences of $0.4bn and an adverse impact of $1.3bn from business disposals in Canada and Argentina. Excluding these factors, NII increased as the benefit of our structural hedge and lower costs of funding offset the impact of lower market interest rates on asset re-pricing. The fall in interest rates reduced the funding costs of the trading book, which resulted in a fall in banking NII of $0.9bn to $21.3bn . On a constant currency basis, revenue decreased by $2.9bn or 8% and banking NII fell by $0.5bn . ECL Reported ECL of $1.9bn were $0.9bn or 82% higher than in 1H24. The charge in 1H25 included charges of $0.5bn related to the Hong Kong CRE sector. This reflected updates to our models used for ECL calculations, which had an impact of $0.1bn, an increase in allowances for new defaulted exposures, as well as the over-supply of non- residential properties putting continued downward pressure on rental and capital values. The