Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001654954-25-012267
Chunk: 2

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 2
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Q25. ECL in 3Q24 included charges against exposures in the onshore Hong Kong CRE and mainland China CRE sectors.

- Operating expenses of $10.1bn were $1.9bn or 24% higher compared with 3Q24. The increase reflected notable items, including legal provisions of $1.4bn on historical matters, comprising $1.1bn in connection with developments in a claim in Luxembourg relating to the Madoff securities fraud, and $0.3bn relating to certain historical trading activities in HSBC Bank plc. Notable items also included restructuring and other related costs associated with our organisational simplification of $0.2bn. In addition, there was higher planned spend and investment in technology and the impacts of inflation. These increases were partly offset by the impact of the disposal of our business in Argentina and the benefits of our restructuring activities. Target basis operating expenses were $8.4bn, $0.3bn or 3% higher than in 3Q24.

- Customer lending balances increased by $1.2bn compared with 2Q25, including adverse foreign currency translation differences. On a constant currency basis, lending balances increased by $5.6bn, including growth in commercial customer lending and mortgages in our UK business and an increase in IWPB from Private Bank lending in Hong Kong and Singapore, and mortgage balance growth in Singapore and Australia.

- Customer accounts increased by $18.6bn compared with 2Q25, including adverse foreign currency translation differences. On a constant currency basis, customer accounts increased by $25.5bn, driven by growth in CIB in Asia, Europe, the UK, the Middle East and the US.

- Common equity tier 1 ('CET1') capital ratio of 14.5% decreased by 0.1 percentage points compared with 2Q25, driven by a reduction in CET1 capital, which reflected the recognition of $1.4bn of legal provisions in 3Q25, partly offset by a decrease in risk-weighted assets ('RWAs'). The decrease in RWAs was mainly driven by a reduction in market risk RWAs, and methodology and policy changes in credit risk RWAs.

- The Board has approved a third interim dividend for 2025 of $0.10 per share. On 24 October, we completed the $3bn share buy-back announced at our interim results on 30 July 2025.

Financial performance in 9M25

- Reported profit before