Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001654954-25-004763
Chunk: 28

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 28
---
als of our businesses in Canada and Argentina. The underlying growth was driven by strong momentum in fee and other income in Wholesale Transaction Banking and Debt and Equity Markets.

Banking NII of $3.4bn decreased by $0.2bn or 7%, including a reduction of $0.4bn due to business disposals in Canada and Argentina. Banking NII reflected the impact of lower interest rates on margins and changes in product mix in Global Payments Solutions ('GPS'), although this was offset by 6% growth in average GPS balances. Banking NII increased in Global Trade Solutions ('GTS') due to higher balances and higher margins, mainly in our legal entities in Asia. In addition, there was lower allocated interest expense from HSBC Holdings.

Fee and other income of $3.7bn increased by $0.7bn or 25%.

- In Wholesale Transaction Banking, fee and other income increased by $0.3bn or 14%, mainly due to higher income in Global Foreign Exchange from elevated market volatility in 1Q25 despite continued margin compression.

- In Debt and Equity Markets, fee and other income was up $0.3bn or 47%, driven by new client onboarding in prime finance and robust institutional financing demand. Revenue from equity derivatives benefited from the rise in market volatility resulting from the uncertain macroeconomic outlook.

- In Other, fee and other income decreased by $0.1bn, largely due to adverse hyperinflationary impacts in Argentina in 1Q24 which did not recur following the disposal of our business there.

ECL charges of $0.2bn were broadly stable on a constant currency basis.

Operating expenses of $3.5bn were $0.2bn or 4% higher than in 1Q24 on a constant currency basis. The increase included restructuring and other related costs, and costs associated with business wind-downs. It also reflected higher spend and investment in technology, and inflationary impacts. These increases were in part mitigated by continued cost discipline and the impact of the sale of our banking business in Canada.

International Wealth and Premier Banking - constant currency basis

| Results - on a constant currency basis         | Quarter ended |             |             |               |     |                    |
|:-----------------------------------------------|--------------:|------------:|------------:|--------------:|----:|-------------------:|
|                                                |               |             |             |      Variance |     |                    |
|                                                |               |             |             | 1Q25 vs.