Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001654954-25-012267
Chunk: 64

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 64
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 December 2024: $49.2bn).

The unsecured portfolio remained stable in size and quality, with limited 'credit impaired' levels and 92% rated 'strong' or 'good' (30 June 2025: 93% and 31 December 2024: 93%). Unsecured exposures are typically granted to strong, listed Hong Kong CRE developers, which are commonly members of conglomerate groups with diverse cash flows.

We continue to expect market conditions to remain challenging in the near term as a result of overall weak leasing and investment demand. While local sentiment has improved in response to improved financial market performance, we are yet to see signs of a meaningful stabilisation outside of the residential sector, where an uptick in rents and government stimulus measures introduced in 4Q24 have underpinned a recovery in transaction levels. The commercial property sector continues to face downward pressure, with both rental and capital values impacted by over-supply, particularly in the office market. The retail property sector has experienced a slight rebound as a result of sales growth since April 2025, although a meaningful recovery is expected to take time as landlords adapt to the structural changes in consumer spending habits. Against this backdrop, further credit migration and property price pressure is likely until we see a deeper reduction in interest rates and a more structural improvement in local economic conditions.

We continue to closely assess and manage the risk in the portfolio, including through portfolio reviews and stress testing. Vulnerable borrowers, including those with debt serviceability challenges and higher LTV levels, are subject to heightened monitoring and management.

Capital risk

Capital overview

| Capital and liquidity adequacy metrics |             |             |
|                                        |          At |             |
|                                        | 30 Sep 2025 | 30 Jun 2025 |
| Risk-weighted assets ('RWAs') ($bn)    |             |             |
| Credit risk                            |       698.5 |       703.6 |
| Counterparty credit risk               |        42.4 |        41.4 |
| Market risk                            |        28.9 |        32.5 |
| Operational risk                       |       109.0 |       109.4 |
| Total risk-weighted assets             |       878.8 |       886.9 |
| Capital ($bn)                          |             |             |
| Common equity tier 1 capital           |       127.8 |       129.8 |
| Tier 1 capital                         |       148.