Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001654954-25-012267
Chunk: 15

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 15
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%. Banking NII rose by $0.4bn on a constant currency basis.

Reported ECL of $1.0bn were stable compared with 3Q24. The charge in 3Q25 primarily related to stage 3 charges on wholesale exposures, including incremental charges related to the Hong Kong CRE sector of $0.2bn, a charge against a Middle Eastern exposure of $0.1bn and charges against a small number of exposures in our UK business. This was partly offset by releases due to a stabilisation in the macroeconomic outlook during 3Q25. ECL in 3Q24 included charges against exposures in the onshore Hong Kong CRE ($0.1bn) and mainland China CRE ($0.1bn) sectors.

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For further details of the calculation of ECL, including the measurement uncertainties and significant judgements applied to such calculations, the impact of the economic scenarios and management judgemental adjustments, see pages 46 to 51 .

Reported operating expenses of $10.1bn were $1.9bn or 24% higher. The increase reflected notable items in 3Q25, including legal provisions of $1.4bn on historical matters, comprising $1.1bn in connection with developments in a claim in Luxembourg relating to the Bernard L. Madoff Investment Securities LLC fraud, and $0.3bn relating to certain historical trading activities in HSBC Bank plc. Notable items also included $0.2bn of restructuring and other related costs in 3Q25 related to our organisational simplification, mainly severance costs. Reported operating expenses growth also reflected higher planned spend and investment in technology and the impacts of inflation. These increases were partly offset by reductions following the completion of the disposal of our business in Argentina, the benefits from our restructuring activities and an adverse impact from foreign currency translation differences of $0.1bn.

On a constant currency basis, operating expenses increased by $1.9bn or 23%. Target basis operating expenses were $0.3bn or 3% higher than in 3Q24.

Reported share of profit from associates and joint ventures of $0.6bn was $16m or 3% lower.

Tax expense in 3Q25 was a charge of $1.8bn, representing an effective tax rate of 24.6%. The effective tax rate for 3Q25 was increased by 4.4% due to legal provisions on which no tax benefit is recorded. Tax