Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 53

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 53
---
 (up $3.5bn), and higher other personal lending in our entities in Asia (up $2.6bn). There was an increase in stage 2 loans and advances to banks and customers of $16.7bn on a constant currency basis. This was mainly driven by updates to our wholesale probability of default (‘PD’) models, which resulted in a shift of balances between stage 1 and 2, mainly in Asia. The balances transferred to stage 2 consisted of up-to- date loans mainly in the ‘Good’ and ‘Satisfactory’ credit quality buckets.

| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| 43                                                |

| Overview |     | Interim management report |     | Interim condensed consolidatedfinancial statements |     | Additional information |
|          |     | Risk                      |     |                                                    |     |                        |

At 30 June 2025 , the allowance for ECL of $10.8bn increased by $0.5bn compared with 31 December 2024, including adverse foreign exchange movements of $0.4bn, and write-offs of $2.0bn. The $10.8bn allowance comprised $10.3bn in respect of assets held at amortised cost, $0.4bn in respect of loan commitments and financial guarantees, and $0.1bn in respect of debt instruments measured at fair value through other comprehensive income (‘FVOCI’). On a constant currency basis, the allowance for ECL in relation to personal and wholesale loans and advances to customers remained stable from 31 December 2024. This was attributable to: – a broadly unchanged allowance for ECL in wholesale loans and advances to customers, which included a $0.1bn increase in stages 1 and 2, offset by a $0.1bn decrease in stage 3; and – a broadly unchanged allowance for ECL in personal loans and advances to customers across all stages. The ECL charge for 1H25 was $1.9bn (1H24: $1.1bn), inclusive of recoveries. The ECL charge comprised: $1.1bn in respect of wholesale lending, of which the stage 3 charge was $0.8bn; and $0.8bn in respect of personal lending, of which $0.5bn was in stage 3. Wholesale lending charges were recognised mainly in our legal entities in Hong Kong ($0.7bn).