Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001089113-25-000046
Chunk: 17

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 17
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24 |                          -3,971 |

1 For details, see ‘Strategic transactions supplementary analysis‘ on page 27 .

| HSBC Holdings plcEarnings Release 1Q25 on Form 6-K | 11 |

1Q25 compared with 1Q24 – performance commentary Profit before tax Reported profit before tax of $9.5bn was $3.2bn lower than in 1Q24, primarily reflecting the impact of notable items. These included the non- recurrence of a $4.8bn gain in 1Q24 on the disposal of our banking business in Canada, partly offset by a loss of $1.1bn in 1Q24 on classification of our business in Argentina as held for sale. The reduction in profit before tax was partly offset by strong performances in fee and other income in Wealth in our IWPB and Hong Kong business segments, and Wholesale Transaction Banking in our CIB segment, which mitigated a reduction in banking NII. Reported operating expenses were broadly stable, while ECL increased, mainly due to an increased weighting of economic assumptions to the downside scenarios. Reported profit after tax of $7.6bn was $3.3bn lower than in 1Q24. On a constant currency basis, profit before tax of $9.5bn was $3.0bn lower than in 1Q24. Revenue Reported revenue of $17.6bn was $3.1bn or 15% lower than in 1Q24, reflecting a net adverse movement in notable items of $3.7bn, primarily relating to our disposals in Canada and Argentina. Revenue excluding notable items increased, reflecting higher fee and other income in Wealth, mainly from strong performances in Global Private Banking and investment distribution reflecting increased customer activity, and in Insurance from a higher CSM release. Fee and other income also increased in Wholesale Transaction Banking, particularly in Global Foreign Exchange from elevated market volatility, as well as in Debt and Equity Markets. NII fell by $0.4bn compared with 1Q24, including an adverse impact of foreign currency translation differences of $0.3bn and the impact of business disposals in Canada and Argentina. Excluding these factors, NII increased from the impact of lower interest rates on funding costs and the benefit of our structural hedge, which more than offset a reduction in asset yields, in part due to a favourable movement in our asset mix. The fall in interest rates reduced the funding costs associated with generating revenue that is recognised in ‘