Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 329

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 329
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 Asia, including in the Hong Kong commercial real estate sector, which was partly offset by favourable credit risk migrations in Sri Lanka and Other trading entities. A further RWA increase in HSBC UK Bank plc was mainly attributed to changes in the loan-to-value mix of our mortgages portfolio. Model updates The $ 7.4 bn RWAs increase mainly followed a revision to the definition of default in our PD models for exposures to financial institutions, and an increase in the post-model adjustments for the Hong Kong models. Methodology and policy The $ 8.9 bn decrease in RWAs largely reflected a $7.5bn fall due to regulatory changes related to the risk-weighting of residential mortgages in Hong Kong. Credit risk parameter refinements, mainly in Asia, further contributed to the fall in RWAs. Acquisitions and disposals RWAs decreased by $ 47.8 bn, predominantly from the disposal of our banking business in Canada, including operational risk RWAs post the PRA waiver permission granted in October 2024, the sale of our business in Argentina and the sale of our retail banking operations in France. Leverage ratio

|                               |         At |            |
|                               | 31 Dec2024 | 31 Dec2023 |
|                               |        $bn |        $bn |
| Tier 1 capital (leverage)     |      144.1 |      144.2 |
| Total leverage ratio exposure |    2,571.1 |    2,574.8 |
|                               |          % |          % |
| Leverage ratio                |        5.6 |        5.6 |

Our leverage ratio was 5.6 % at 31 December 2024 , unchanged from 31 December 2023 . Leverage exposures decreased primarily due to strategic disposals and adverse foreign currency translation differences, which exceeded the increase in the underlying balance sheet. This was offset by a fall in the tier 1 capital. At 31 December 2024 , our UK minimum leverage ratio requirement of 3.25% was supplemented by a leverage ratio buffer of 0.9%, which consists of an additional leverage ratio buffer of 0.7% and a countercyclical leverage ratio buffer of 0.2%. These buffers translated into capital values of $18.0bn and $5.1bn respectively. Regulatory transitional arrangements for IFRS 9 ‘Financial Instruments’ We have adopted the regulatory transitional arrangements of the Capital Requirements Regulation for IFRS