Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001654954-25-004763
Chunk: 41

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 41
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).

The increase in IWPB was primarily driven by growth in our main legal entity in Hong Kong (up $1.4bn).

In our UK business segment, the increase was primarily driven by mortgage growth.

The decrease in our Hong Kong business segment was primarily driven by lower exposures across different products, including mortgages and cards.

The decrease in Corporate Centre was driven by the reclassification of a retained portfolio of home and other loans following the disposal of our retail banking operations in France to debt instruments measured at fair value through other comprehensive income ('FVOCI'), as a result of a change in the IFRS 9 measurement category of the portfolio.

At 31 March 2025, the allowance for ECL of $10.7bn comprised $10.2bn in respect of assets held at amortised cost, $0.4bn in respect of loan commitments and financial guarantees, and $0.1bn in respect of debt instruments measured at FVOCI.

On a constant currency basis, the allowance for ECL in relation to loans and advances to customers increased by $0.3bn. This was attributable to:

- a $0.1bn increase in stages 1 and 2; and

- a $0.2bn increase in stage 3.

The ECL charge for the first three months of 2025 was $0.9bn (1Q24: $0.7bn), inclusive of recoveries. The ECL charge included the impact of a deterioration in the forward economic outlook. It comprised: $0.3bn in respect of the Hong Kong business segment; $0.2bn in respect of the UK business segment; $0.2bn in respect of CIB; and $0.2bn in respect of IWPB.

At 31 March 2025, the shift in weightings to reflect the uncertainty of the forward economic outlook resulted in an ECL charge of $150m.

For further details on ECL charges in each of our business segments, see pages 16 and 38 .

ECL charges in the mainland China commercial real estate sector were immaterial in 1Q25. ECL charges in the Hong Kong commercial real estate sector excluding exposure to mainland China borrowers of $0.1bn in 1Q25 were due to ongoing pressures in the sector.

| Summary of financial instruments to which the impairment            
 requirements in IFRS 9 are applied - by business segment at 31      
 March 2025                                                          |                               |