Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 98

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 98
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 in sales practices, and is not necessarily initiated by regulatory action.

For further details of the impact of IFRS 9 on undrawn loan commitments and financial guarantees, presented in ‘Contractual commitments’,

see Note 12. Further analysis of the movement in the ECL provision is disclosed within the ‘Reconciliation of changes in gross carrying/nominal

amount and allowances for loans and advances to banks and customers including loan commitments and financial guarantees‘ table on page 55 .

Brazil PIS and COFINS tax matters

Beginning in the late 1990s, HSBC Bank Brasil S.A. – Banco Múltiplo (‘HSBC Brazil’) and other financial services firms brought legal proceedings

in Brazil challenging the assessment of Contribution to the Social Integration Programme (‘PIS’) and Contribution for the Financing of Social

Security (‘COFINS’) taxes, which are federal taxes imposed on gross revenues earned by legal entities in Brazil. The Supreme Court of Brazil

selected three cases – one involving an insurer, in 2007, and two involving other banks, in 2011 – to set standards that would apply to all of

these proceedings. In June 2023, the court ruled against the financial services firms in all three cases. The standards set by the court in this

ruling have not yet been applied to HSBC Brazil’s legacy cases, liability for which remained with HSBC after the sale of HSBC’s operations in

Brazil to Bradesco in 2016. In May 2025, the first instance judicial court delivered a favourable judgment in HSBC Brazil’s second largest legacy

PIS and COFINS case. This judgment is subject to appeal by the Brazilian Tax Authority. There are many factors that may affect the range of

outcomes and any resulting financial impact for HSBC. Based upon the information currently available, a provision was recognised in respect of

one legacy case. The remaining additional tax liability subject to challenge on all legacy PIS and COFINS cases is up to $ 0.4b n, and no provision

has been booked for this amount.

12 Contingent liabilities, contractual commitments and guarantees

|                                                                   |          At |             |
|                                                                   | 30 Jun 2025 | 31 Dec 2024 |
|                                                                   |          $m |          $m |
| Guarantees and other contingent liabilities:                      |             |             |
| –  financial guarantees                                           |      16,605 |      16,