Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 583

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 583
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 Dec 2024                                                                       |        -1,056 |              -23 |

| Cash flow hedging reserve at 1 Jan 2023                                                                        | -3,387 | -421 |
| Fair value gains/(losses)                                                                                      |  1,512 |  977 |
| Fair value (gains)/losses reclassified from the cash flow hedge reserve to the income statement in respect of: |        |      |
| Hedged items that have affected profit or loss1                                                                |  2,196 | -718 |
| Income taxes                                                                                                   |   -937 |  -29 |
| Others                                                                                                         |   -285 |   59 |
| Cash flow hedging reserve at 31 Dec 2023                                                                       |   -901 | -132 |

1 Hedged items that have affected profit or loss are primarily recorded within interest income.

| HSBC Holdings plcAnnual Report on Form 20-F | 421 |

Net investment hedges

The Group applies hedge accounting in respect of certain net investments in non-US dollar functional currency foreign operations for changes in

spot exchange rates only. Hedging could be undertaken for Group structural exposure to changes in the US dollar to foreign currency exchange

rates using forward foreign exchange contracts or by financing with foreign currency borrowings. An economic relationship exists between the

hedged net investment and hedging instrument due to the shared foreign currency risk exposure. For further details of our structural foreign

exchange exposures, see page 212 .

The aggregate positions at the reporting date and the performance indicators of both live and de-designated hedges are summarised below.

| Hedges of net investment in foreign operations           |                  |                       |               |                          |                      |                                                    |
|                                                          |  Carrying amount |                       | Nominalamount | Amountsrecognisedin OCI1 | Change infair value2 | Hedge ineffectivenessrecognised in incomestatement |
|                                                          | Derivativeassets | Derivativeliabilities |               |                          |                      |                                                    |
| Description of hedged risk                               |               $m |                    $m |            $m |                       $m |                   $m | $m                                                 |
| 2024                                                     |                  |                       |               |                          |                      |                                                    |
| Pound sterling-denominated structural foreign exchange   |              397 |                    -1 |        15,407 |                      833 |                  229 | —                                                  |
| Swiss franc-denominated structural foreign exchange      |               10 |                     — |