Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 584

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 584
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 | Saudi Arabia                                                | Banking services   |             31.00 |

1 There has been no percentage change in HSBC’s shareholding interest in the principal associates when compared with 2023.

| Share of profit in associates and joint ventures |       |        |
|                                                  |  2024 |   2023 |
|                                                  |    $m |     $m |
| Bank of Communications Co., Limited              | 2,241 |  2,250 |
| Saudi Awwal Bank                                 |   596 |    538 |
| Other associates and joint ventures              |    75 |     19 |
| Share of profit in associates and joint ventures | 2,912 |  2,807 |
| Less: Impairment of interest in BoCom            |     — | -3,000 |

A list of all associates and joint ventures is set out in Note 38 . Bank of Communications Co., Limited The Group maintains a 19.03% interest in Bank of Communications Co., Limited (‘BoCom’). The Group’s investment in BoCom is classified as an associate. Significant influence in BoCom was established with consideration of all relevant factors, including representation on BoCom’s Board of Directors and participation in a resource and experience sharing agreement (‘RES’). Under the RES, HSBC staff have been seconded to assist in the maintenance of BoCom’s financial and operating policies. Investments in associates are recognised using the equity method of accounting in accordance with IAS 28 ‘Investments in Associates and Joint Ventures’, whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the Group’s share of associate’s net assets. An impairment test is required if there is any indication of impairment or reversal. At 31 December 2023, the Group performed an impairment test on the carrying amount, which resulted in an impairment of $ 3.0b n, as the recoverable amount as determined by a value in use (‘VIU’) calculation was lower than the carrying amount. No further impairment was required for the year ended 31 December 2024. If the Group did not have significant influence in BoCom, the investment would be carried at fair value rather than the current carrying amount. On 24 September 2024, the People’s Bank of China, National Financial Regulatory Administration and China Securities Regulatory Commission announced several policies aimed at promoting growth and economic development. These included monetary stimulus, property market support and capital market strengthening measures,