Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 293

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 293
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Management judgemental adjustments’ and ‘Other adjustments’

constitute the total value of adjustments to modelled allowance for

ECL. For the wholesale portfolio, defaulted exposures are assessed

individually and management judgemental adjustments are made only

to the performing portfolio.

At 31 December 2024, there was a $ 0.6b n reduction in management

judgemental adjustments compared with 31 December 2023. This

was driven by retail due to reductions in economic uncertainty,

primarily in the UK and Asia, and model redevelopments which

captured macro-economic risks more effectively.

Management judgemental adjustments made in estimating the

scenario-weighted reported allowance for ECL at 31 December 2024

are set out in the following table.

| Management judgemental adjustments to ECL at 31 December 20241     |        |            |       |
|                                                                    | Retail | Wholesale2 | Total |
|                                                                    |    $bn |        $bn |   $bn |
| Modelled ECL (A)3                                                  |    2.6 |        2.0 |   4.6 |
| Banks, sovereigns, government entities and low-risk counterparties |        |        0.0 |   0.0 |
| Corporate lending adjustments                                      |        |        0.1 |   0.1 |
| Inflation related adjustments                                      |    0.0 |            |   0.0 |
| Other credit judgements                                            |    0.0 |            |   0.0 |
| Total management judgemental adjustments (B)4                      |    0.0 |        0.1 |   0.1 |
| Other adjustments (C)5                                             |   -0.0 |        0.1 |   0.1 |
| Final ECL (A + B + C)6                                             |    2.6 |        2.2 |   4.8 |

| Management judgemental adjustments to ECL at 31 December20231,7    |        |            |       |
|                                                                    | Retail | Wholesale2 | Total |
|                                                                    |    $bn |        $bn |   $bn |
| Modelled ECL (A)3                                                  |    2.6 |        2.4 |   5.0 |
| Banks, sovereigns, government entities and low-risk counterparties |        |        0.