Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001089113-25-000046
Chunk: 21

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 21
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 amortised premiums and loan fees, and the average annualised interest rate payable on average interest-bearing funds. 3 Net interest margin is net interest income expressed as an annualised percentage of AIEA. Net interest income NII in 1Q25 was $8.3bn, a decrease of $0.4bn or 4% compared with 1Q24, mainly due to the business disposals in Argentina and Canada, which resulted in reductions of $0.5bn and $0.3bn respectively. Excluding these factors, NII increased from the impact of lower interest rates on funding costs and the benefit of our structural hedge, which more than offset a reduction in asset yields, in part due to a favourable movement in our asset mix. Excluding the adverse effect of foreign currency translation differences, NII was stable compared with 1Q24. NII in 1Q25 compared with 4Q24 was up $0.1bn, as the benefit of our structural hedge, the impact of lower interest rates on funding costs and a favourable movement in our asset mix were partly offset by a reduction of $0.2bn from the disposal of our business in Argentina and a lower number of days in 1Q25 than in 4Q24. Net interest margin NIM for 1Q25 of 1.59% was 4 basis points (‘bps’) lower compared with 1Q24, reflecting lower interest rates. NIM was up 5bps in 1Q25 compared with 4Q24, mainly driven by higher margins in Asia and Europe as the cost of liabilities fell more than asset yields. Excluding the adverse effect of foreign currency translation differences, NIM in 1Q25 was stable compared with 1Q24.

| 14 | HSBC Holdings plcEarnings Release 1Q25 on Form 6-K |

Earnings Release – 1Q25

Interest income and interest expense Interest income in 1Q25 of $24.4bn decreased by $3.9bn or 14% compared with 1Q24, and by $1.6bn or 6% compared with 4Q24, due to the business disposals referred to above and lower market interest rates. Excluding the adverse effect of foreign currency translation differences, interest income fell by $3.1bn compared with 1Q24, and by $1.3bn compared with 4Q24. Interest expense in 1Q25