Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 328

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 328
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 Group consolidated basis. 2 Balance includes operational risk RWAs for HSBC Bank Canada post the PRA waiver permission granted in October 2024. 3 Credit risk foreign exchange movements in this disclosure are computed by retranslating the RWAs into US dollars based on the underlying transactional currencies, and other movements in the table are presented on a constant currency basis. 4 RWAs balance at 31 December 2024 includes HSBC Argentina operational risk RWAs due to the averaging calculation and will roll off over future reporting cycles.

| HSBC Holdings plcAnnual Report on Form 20-F | 237 |

RWAs decreased by $ 15.8 bn during the year, mainly due to strategic disposals of $ 47.8 bn and foreign currency translation differences of $ 22.2 bn, which were partly offset by asset size movements of $ 49.4 bn. Asset size Asset size RWAs increased by $ 49.4 bn, including a $14.6bn rise in operational risk RWAs driven by an increase in average income. CMB RWAs rose by $ 17.3 bn, including a $6.4bn increase in operational risk RWAs, and additional RWAs contributed by an increase in corporate lending, mainly in HSBC UK Bank plc and higher sovereign exposures in Other trading entities and Asia. GBM RWAs increased by $ 13.9 bn, mainly reflecting an increase in operational risk RWAs of $5.5bn, higher securities financing exposures in HSBC Bank plc, and mark-to-market movements and organic growth in counterparty credit risk, mainly in Asia. Further RWA increases were due to higher sovereign exposures in Asia and Other trading entities. WPB RWAs increased by $ 11.1 bn, including a $4.2bn rise in operational risk RWAs, and due to retail mortgage growth in the US and HSBC UK Bank plc, and higher sovereign exposures in Other trading entities and Asia. Corporate Centre RWAs increased by $ 2.6 bn, primarily due to lending growth in SAB, reflected in Other trading entities. Market risk RWAs increased by $ 4.5 bn, which was mainly attributed to an increase in stressed value at risk due to higher sensitivities to interest rate shocks under the stress scenario, and the higher incremental risk charge due to increased positions, mainly in Asia and HSBC Bank plc. Asset quality The $ 6.3 bn rise in RWAs was mainly due to unfavourable credit migrations in