Company: HBCYF
Filing Date: 2025-06-02
Form Type: 424B5
Source: 0001193125-25-132352
Chunk: 42

Company: HSBC HOLDINGS PLC
Filing Date: 2025-06-02
Form: 424B5
Chunk 42
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 it will be
subject to mandatory restrictions on certain distributions or payments, calculated by reference to a maximum distributable amount (which are defined broadly by the PRA Rulebook (or the VREQ, as applicable) as payments or distributions relating to
common equity Tier 1, variable remuneration, or discretionary pension benefits and payments on additional Tier 1 instruments (such as the Securities)). These requirements apply to firms on a consolidated basis. The restrictions for failing to meet
the combined buffer is scaled according to the extent of the use of the combined buffer and currently calculated as a percentage of the profits from the past four calendar quarters, net of distributions or discretionary payment. Such calculation
will result in a maximum distributable amount in each relevant period. As an example, the scaling is such that in the

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bottom quartile of the combined buffer, no discretionary payments will be permitted to be paid. As a consequence, in the event that the consolidated common equity Tier 1 is insufficient to meet
the combined buffer, it may be necessary to reduce discretionary payments in whole or in part, including potentially cancelling (in whole or in part) interest payments in respect of the Securities.

The PRA also has the power under sections 192C and 192T of the FSMA to impose requirements on us, the effect of which may be to restrict or
prohibit payments of interest to you, which is most likely to materialize if at any time we are failing, or are expected to fail, to meet our capital requirements. If the PRA exercises its discretion, we will cancel (in whole or in part, as required
by the PRA) interest payments in respect of the Securities. In addition, as a result of measures introduced by the UK CRD V Regulations, we are subject to direct supervision by the PRA, as an approved holding company, to ensure compliance with
consolidated or sub-consolidated prudential requirements and the PRA has additional powers to enforce our compliance.

The failure to meet the PRA buffer or leverage ratios or buffers will not automatically trigger restrictions on distributions; notwithstanding
this, the PRA may impose requirements which could have the effect of imposing such restrictions under its supervisory powers envisaged in the Relevant Rules and FSMA. In addition, failure to meet the PRA buffer or leverage ratios or buffers could
result in the preparation of a capital restoration plan. Such capital restoration plan may (but will not automatically) impose restrictions on discretionary payments, which may result in