Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 43

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 43
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| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| 22                                                |

| Overview |     | Interim management report |     | Interim condensed consolidatedfinancial statements |     | Additional information |
|          |     | Financial summary         |     |                                                    |     |                        |

Insurance service result of $0.8bn increased by $0.1bn compared with 1H24, primarily due to an increase in the release of the contractual service margin (‘CSM’) of $0.1bn. This primarily reflected a higher CSM balance from higher new business written. Gains less impairment relating to sale of business operations were $34m compared with $3.3bn in 1H24. The 1H24 period included a gain of $4.6bn inclusive of the recycling of $0.6bn in foreign currency translation reserve losses and $0.4bn of other reserves recycling losses on the sale of our banking business in Canada. This was partly offset by an impairment loss of $1.2bn relating to the sale of our business in Argentina. Other operating income/(expense) was an expense of $0.4bn in 1H25, which was $0.3bn higher than the expense of $0.1bn in 1H24. The 1H25 period included a dilution loss of $1.1bn on BoCom following the completion of its capital issuance. This was partly offset by the non- recurrence of adverse hyperinflationary impacts in Argentina in 1H24 of $0.7bn . Change in expected credit losses and other credit impairment charges (‘ECL’) of $1.9bn was $0.9bn higher than in 1H24. The charge in 1H25 included charges of $0.5bn related to the Hong Kong commercial real estate sector. This reflected updates to our models used for ECL calculations, which had an impact of $0.1bn, an increase in allowances for new defaulted exposures, as well as the over-supply of non-residential properties putting continued downward pressure on rental and capital values . The 1H25 period also included allowances to reflect heightened uncertainty and a deterioration in the forward economic outlook due to geopolitical tensions and higher trade tariffs. In 1H24, the ECL charge benefited from allowance releases, mainly in the UK and from a recovery relating to a single CIB client. Ñ For further details on the