Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 78

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 78
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386.1 | 90.5 |            84.3 |       32.5 |     886.9 |

1 Credit risk foreign exchange movements in this disclosure are computed by retranslating RWAs into US dollars based on the underlying transactional currencies and other movements in the table are presented on a constant currency basis. During the first half of the year, RWAs increased by $ 48.6 bn, including a rise of $ 28.7 bn due to foreign currency translation differences. The remaining $ 19.9 bn increase in RWAs was mainly attributable to asset size movements. Asset size CIB RWAs rose by $ 8.4 bn, due to an increase in corporate lending, mainly in the US, UK and Asia. A further increase was due to a rise in the derivatives portfolio driven by client activity and favourable yields, mainly in the UK. In our UK business segment, RWAs increased by $ 7.1 bn, primarily due to higher corporate lending. Corporate Centre RWAs increased by $ 3.5 bn, largely driven by a rise in SAB corporate exposures. IWPB RWAs increased by $ 2.0 bn, mainly due to an increase in our asset management exposures and the value of our insurance business. In our Hong Kong business, RWAs decreased by $ 1.0 bn due to a fall in corporate and retail lending. The $ 3.7 bn decrease in market risk RWAs was attributable to reductions in modelled measures, primarily stressed value at risk (‘SVaR’), as periods of greater volatility dropped out of the data, and changes in the risk profile of interest rates and foreign exchange. Asset quality The $ 5.2 bn increase in RWAs was mainly due to unfavourable credit risk migrations in our Hong Kong, CIB and UK business segments. Acquisitions and disposals RWAs decreased by $ 3.0 bn, due to the PRA waiver granted in 2025 for the exclusion of operational risk RWAs associated with the sale of our retail banking operations in France and disposal of our business in Argentina. Additionally, we sold the ADRs in Galicia received as purchase consideration from the sale of our business in Argentina. Methodology and policy The $ 1.4 bn increase in RWAs was primarily due to methodology changes in CIB, partly offset by credit risk parameter refinements in CIB and our Hong Kong business. Leverage ratio

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