Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 298

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 298
---
1 |
|                                     |     $bn |        $bn |
| Reported allowance for ECL          |     2.4 |        2.2 |
| Scenarios                           |         |            |
| 100%Consensus Central scenario      |    -0.1 |       -0.2 |
| 100%Consensus Upside scenario       |    -0.1 |       -0.6 |
| 100%Consensus Downside scenario     |     0.0 |        0.7 |
| 100%Downside 2 scenario             |     1.5 |        4.3 |

| Total Group ECL at 31 December2023 |      |      |
| Reported allowance for ECL         |  3.0 |  2.5 |
| Scenarios                          |      |      |
| 100%Consensus Central scenario     | -0.1 | -0.2 |
| 100%Consensus Upside scenario      | -0.5 | -0.7 |
| 100%Consensus Downside scenario    |  0.4 |  0.8 |
| 100%Downside 2 scenario            |  2.1 |  4.5 |

1 On the same basis as retail and wholesale sensitivity analysis.

At 31 December 2024, the Group allowance for ECL decreased in the

retail portfolio by $ 0.6b n and decreased by $ 0.3b n in the wholesale

portfolio, compared with 31 December 2023.

There was also a reduction in allowance for ECL sensitivity across all

scenarios within the retail and wholesale portfolios since

31 December 2023, primarily as a result of the sale of our Canada

banking business, the sale of our retail banking operations in France,

and various other business sales during the first half of 2024.

For the wholesale portfolio this was the main driver of the decrease in

Downside 2 ECL sensitivity.

For the retail portfolios the ECL sensitivity decrease across all

scenarios including the Downside 2 was also primarily due to the

r eduction of management judgemental adjustments, model

redevelopments and scenario evolution.

| Reconciliation from reported exposure and ECL to sensitised exposure and weighted ECL                                                                             |                               |                  |                               |                  |                               |                  |
|                                                                                                                                                                   |                     Wholesale |                  |                        Retail |                  |