Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001089113-25-000046
Chunk: 45

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 45
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 a weight of 25% and 5% assigned to the Downside 2 scenario. The swift implementation and subsequent pause in tariffs for many countries on 9 April 2025 affirmed the high level of uncertainty attached to the economic outlook. The uncertain policy direction has contributed to increased financial market volatility, as well as declines in both business and consumer confidence, supporting the decision for re-weighting scenarios to reflect more significant downside risks. Management judgemental adjustments In the context of IFRS 9, management judgemental adjustments are typically short-term increases or decreases to the modelled allowance for ECL at either a customer, segment or portfolio level where management believes allowances do not sufficiently reflect the credit risk/expected credit losses at the reporting date. These can relate to risks or uncertainties that are not reflected in the models and/or to any late-breaking events with significant uncertainty, subject to management review and challenge. The drivers of management judgemental adjustments continue to evolve with the economic environment and as new risks emerge. Further details can be found in the section ‘Management judgemental adjustments‘ on page 185 of the Annual Report and Accounts 2024 on Form 20-F. Management judgemental adjustments are reviewed under the governance process for IFRS 9, as detailed in the section ‘Credit risk management’ on page 169 of the Annual Report and Accounts 2024 on Form 20-F. At 31 March 2025, management judgmental adjustments were an increase to allowance for ECL of $0.3bn (31 December 2024: $0.1bn increase). Management judgemental adjustments increased $0.2bn from 31 December 2024. At 31 March 2025, wholesale management j udgemental adjustments were an increase to allowance for ECL of $0.2bn (31 December 2024: $0.1bn increase), mostly to reflect heightened uncertainty in specific sectors and geographies, including adjustments to exposures to the real estate sectors booked in Hong Kong, mainland China and the US, and adjustments to exposures to the automotive and industrial sectors in Germany. In the retail portfolio, management judgemental adjustments were an increase to modelled ECL of $0.1bn at 31 March 2025 (31 December 2024: $0.0bn increase). These adjustments were made to address portfolio-specific uncertainties across a number of markets in which HSBC operates.

| 46 | HSBC Holdings plcEarnings Release 1Q25 on Form 6-K |

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