Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001089113-25-000046
Chunk: 9

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 9
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 this we have attracted net new invested assets of $22bn in the first three months of 2025, with $16bn booked in Asia. In the first three months of 2024, net new invested assets were $27bn, with $19bn booked in Asia. Total Wealth fee and other income across all of our business segments was up $0.4bn or 21% compared with 1Q24, or 23% on a constant currency basis, with the increase mainly in Asia. There was a strong performance in our insurance business, which was up 13%, and growth in insurance manufacturing new business contractual service margin (‘CSM‘) of $1.1bn, up 44% compared with 1Q24. While the external environment is now more uncertain, our strategy remains unchanged and we approach this period from a position of strength. We have assessed plausible downside scenarios that model significantly higher tariffs, and related impacts on growth, policy rates and inflation on our earnings. Under these scenarios, we anticipate a low single-digit percentage direct impact on the Group’s revenue and around $0.5bn in incremental ECLs. The broader impacts of the current conditions are more difficult to quantify, and we will continue to monitor these as we formulate our ongoing outlook.

Business disposals Retained portfolio of home and other loans in France Following the sale of our retail banking operations on 1 January 2024, HSBC Continental Europe retained a portfolio of home and certain other loans, with a carrying value of €7.1bn ($7.9bn) at the time of sale. During the fourth quarter of 2024, we began actively marketing the retained portfolio for sale. As a result, on 1 January 2025 we reclassified the portfolio to a hold-to-collect-and-sell business model, measuring it at fair value through other comprehensive income. Since reclassification and during 1Q25, we recognised a fair value pre-tax loss in other comprehensive income of $1.3bn on the remeasurement of the financial instruments, which resulted in an approximately 0.2 percentage point reduction in the Group’s CET1 ratio. The valuation of this portfolio of loans may be substantially different in the event of a sale due to entity and deal-specific factors, including funding costs and the value of customer relationships. In the event of a sale, upon completion, the cumulative fair value changes recognised through other comprehensive income, which would reflect the terms of an agreed sale, would reclassify to