Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 42

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 42
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 we also provide banking NII sensitivity to demonstrate our revenue sensitivity to interest rate movements. Management uses these measures to determine the deployment of our surplus funding, and to help optimise our structural hedging and risk management actions. Ñ For further details on banking NII sensitivity, see page 71 . Net fee income of $6.6bn was $0.4bn higher than in 1H24, including an adverse impact of $0.2bn due to the impact of the disposal of our banking business in Canada and business in Argentina. On a constant currency basis, net fee income was $0.5bn higher, driven by growth in fees from Wealth products in our Hong Kong business and in IWPB in Hong Kong, mainland China, Taiwan and Singapore. Net fee income was broadly stable in our other segments. Net income from financial instruments held for trading or managed on a fair value basis of $10.5bn was stable compared with 1H24. This reflected higher income in CIB, notably as higher market volatility benefited Global Foreign Exchange and Debt and Equity Markets. The funding costs associated with generating this income fell as a result of lower interest rates, which resulted in a corresponding increase in net interest income. The reduction of trading income in Corporate Centre also included an adverse movement of $0.1bn in 1H25 on American Depositary Receipts received as purchase consideration from the sale of our business in Argentina, which we disposed of in 2Q25. It also included the non-recurrence of favourable fair value movements of $0.3bn in 1H24 on the foreign exchange hedging of the proceeds of the sale of our banking business in Canada until the completion of the sale. Net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss of $5.1bn was $2.7bn higher than in 1H24. This increase was mainly in Hong Kong, reflecting favourable fair value movements on debt securities due to movements in interest rates. This favourable movement resulted in a corresponding movement in insurance finance expense, which has an offsetting impact for the related liabilities to policyholders. Insurance finance expense of $5.3bn was $2.8bn higher than in 1H24, reflecting the impact of investment returns on underlying assets on the value of liabilities to policyholders, which moves inversely with ‘net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss’.