Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001089113-25-000046
Chunk: 24

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 24
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 accounts decreased by $9bn . The following movements are on a constant currency basis. In our Hong Kong and UK business segments, customer accounts remained stable. In CIB, customer accounts decreased by $12bn . This was driven by lower balances in our legal entities in Asia and the US, primarily reflecting seasonal outflows in 1Q25. In IWPB, customer accounts rose by $5bn , primarily driven by growth in Global Private Banking in our legal entity in Hong Kong and in HSBC Bank plc, mainly in term deposits. Financial investments As part of our interest rate hedging strategy, we hold a portfolio of debt instruments, reported within financial investments, which are classified as hold-to-collect-and-sell. As a result, the change in value of these instruments is recognised through ‘debt instruments at fair value through other comprehensive income’ in equity. At 31 March 2025, we had recognised a pre-tax cumulative unrealised loss reserve through other comprehensive income of $2.7bn related to these hold-to-collect-and-sell positions, excluding investments held in our insurance business. This compared with an unrealised loss of $3.8bn at 31 December 2024, and reflected a $1.1bn pre-tax gain in 1Q25, inclusive of movements on related fair value hedges. On 1 January 2025, we reclassified a portfolio of home and other loans associated with the sale of our retail banking operations in France to a hold-to-collect-and-sell business model, measuring it in loans and advances at fair value through other comprehensive income. Since reclassification and during 1Q25, we recognised a fair value post-tax loss in other comprehensive income of $1.3bn on the remeasurement of these financial instruments. Overall, the Group is positively exposed to rising interest rates through NII, although there is an adverse impact on our capital base in the early stages of a rising interest rate environment due to the fair value of hold-to-collect-and-sell instruments. Over time, these adverse movements will unwind as the instruments reach maturity, although not all will necessarily be held to maturity, or as interest rates begin to fall. We also hold a portfolio of financial investments measured at amortised cost, which are classified as hold-to-collect and are held to manage our interest rate exposure. At 31 March 2025, the debt instruments within this portfolio had a cumulative unrecognised loss of $1.0bn, representing a $1