Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001654954-25-012267
Chunk: 17

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 17
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 NII. There was a strong performance in Insurance, due to a higher CSM release and favourable experience variances, and growth in our Private Bank and investment distribution from higher customer activity. Fee and other income rose in Wholesale Transaction Banking reflecting a strong performance in the first half of 2025, particularly in Global Foreign Exchange amid elevated market volatility, as well as in Debt and Equity Markets.

NII increased by $1.1bn compared with 9M24, including an adverse impact from business disposals in Argentina and Canada of $1.5bn and an adverse impact of foreign currency translation differences of $0.4bn. Excluding these factors, NII increased due to the benefit of our structural hedge, deposit growth and lower costs of funding, which mitigated the impact of lower market interest rates. It also included a benefit from the non-recurrence of a $0.3bn loss in 3Q24 on the early redemption of legacy securities, classified as a notable item. The fall in interest rates reduced the funding costs of the trading book, which resulted in a reduction in banking NII of $0.4bn to $32.4bn.

On a constant currency basis, revenue decreased by $2.3bn or 4% and banking NII fell by $0.1bn.

Reported ECL of $2.9bn were $0.9bn or 44% higher than in 9M24. The charge in 9M25 included charges of $0.7bn related to the Hong Kong CRE sector, which was $0.6bn higher than in 9M24. This reflected higher allowances for new defaulted exposures, the impact of an over-supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations. The 9M25 period also included a charge against a single Middle Eastern exposure in the third quarter.

In 9M24, the ECL charge benefited from allowance releases, mainly in the UK, and from a recovery relating to a single CIB client.

On a constant currency basis, ECL charges were $1.0bn higher than in 9M24.

Reported operating expenses of $27.1bn were $2.7bn or 11% higher. The increase primarily reflected notable items in 9M25, including legal provisions of $1.4bn, restructuring and other related costs in 9M25 of $0.