Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001089113-25-000046
Chunk: 18

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 18
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net income from financial instruments held for trading or managed on a fair value basis‘, arising from the deployment of our commercial surplus to the trading book. The reduction in funding costs of the trading book and the decrease in NII led to a fall in banking NII of $0.7bn to $10.6bn . On a constant currency basis, revenue decreased by $2.7bn or 13% , and included a reduction of $4.4bn relating to the impact of strategic transactions. Banking NII fell by $0.3bn on a constant currency basis. ECL Reported ECL of $0.9bn were $0.2bn higher than in 1Q24, as we increased allowances to reflect heightened uncertainty and deterioration in the forward economic outlook due to geopolitical tensions and higher trade tariffs . ECL in 1Q25 included charges of $0.1bn against exposures in the onshore Hong Kong commercial real estate sector. On a constant currency basis, ECL charges were $0.2bn higher than in 1Q24. u For further details of the calculation of ECL, including the measurement uncertainties and significant judgements applied to such calculations, the impact of the economic scenarios and management judgemental adjustments, see pages 41 to 46 . Operating expenses Reported operating expenses of $8.1bn were broadly stable . There were reductions due to the completion of disposals in Canada and Argentina and a favourable impact from foreign currency translation differences of $0.2bn . These reductions were partly offset by $0.1bn of restructuring and other related costs in 1Q25 related to our organisational simplification, mainly severance costs that are classified as notable items. Cost growth also reflected higher spend and investment in technology and the impacts of inflation. On a constant currency basis, operating expenses increased by $0.2bn or 2% . Target basis operating expenses were $0.3bn or 3.5% higher than in 1Q24. Share of profit from associates and JVs Reported share of profit from associates and joint ventures of $0.8bn was $44m or 6% higher. This included a higher share of profit from Saudi Awwal Bank (‘SAB‘) and BoCom. Tax expense Tax in 1Q25 was a charge of $1.9bn , representing an effective tax rate of 20.2%. The effective tax rate for 1Q25 increased by 0.7% due to