Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001089113-25-000046
Chunk: 37

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 37
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BC entities. The performance of the Hong Kong commercial real estate market is differentiated across asset segments, with commercial property continuing to suffer from weak demand, while the residential property market has seen some stabilisation as transaction levels have increased following government policy relaxation. Price pressure nevertheless continues as developers accelerate de-stocking and valuation agents recalibrate their assessments in view of recent market benchmarks. Resultant changes in property valuations and loan-to-value ratios are monitored closely for appropriate portfolio actions. Broader economic sentiment in Hong Kong remains cautious, with interest rates subject to increased uncertainty given possible inflationary pressures from ongoing trade tensions. Commercial real estate market conditions in mainland China remain challenging, although some positive sales momentum has been observed in tier one cities. A full recovery is likely to be protracted and dependent on a sustained improvement in underlying sentiment, as well as further government support. We continue to closely monitor market conditions and take steps to proactively manage our commercial real estate portfolios. In the first quarter of 2025, management adjustments to ECL were applied to reflect sector or portfolio risks that are not fully captured by our models. We continue to monitor, and seek to manage, the potential implications of all the above developments on our customers and our business. At 31 March 2025 our CET1 ratio decreased to 14.7 % from 14.9 % at 31 December 2024, and our liquidity coverage ratio (‘LCR’) was 139 %, up from 138% at 31 December 2024. u For further details of our Central and other economic scenarios, see ‘Measurement uncertainty and sensitivity analysis of ECL estimates’ on page 41 . u For further details of management adjustments to ECL, see page 45 . u For further details on our CET1 ratio, see ‘Capital risk‘ on page 48 .

| HSBC Holdings plcEarnings Release 1Q25 on Form 6-K | 37 |

Credit risk Summary of credit risk At 31 March 2025 , gross loans and advances to customers of $955bn were $14.4bn higher on a reported basis compared with 31 December 2024. This included total favourable effects of foreign currency translation differences of $12.2bn. On a constant currency basis, the increase of $2.2bn was driven by higher balances in CIB (up $7.2bn), IWPB (up $1.9bn) and in our UK business (up $1.9bn). These were partly offset by