Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001654954-25-008629
Chunk: 2

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 2
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 were $0.7bn or 4% higher than in 1H24. Growth reflected restructuring and other related costs associated with our organisational simplification of $0.6bn. It also included higher spend and investment in technology. These increases were partly offset by cost reductions due to our disposals in Canada and Argentina.

- Target basis operating expenses were $0.4bn or 3% higher than in 1H24, primarily due to higher spend and investment in technology and the impacts of inflation.

- Customer lending balances of $982bn increased by $51bn compared with 31 December 2024, including favourable foreign currency translation differences. On a constant currency basis, lending balances increased by $7bn, mainly in our UK business.

- Customer accounts of $1,719bn increased by $64bn compared with 31 December 2024, including favourable foreign currency translation differences. On a constant currency basis, customer accounts decreased by $8bn, mainly from the classification of deposits to held for sale, notably $12bn related to our custody business in Germany, and outflows in CIB in the UK, partly offset by an increase in our Hong Kong business.

- Common equity tier 1 ('CET1') capital ratio of 14.6% decreased by 0.3 percentage points compared with 31 December 2024, driven by an increase in risk-weighted assets ('RWAs'), partly offset by an increase in CET1 capital through profit generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements.

- The Board has approved a second interim dividend of $0.10 per share. We also intend to initiate a share buy-back of up to $3bn, which we expect to complete by our third quarter 2025 results announcement.

Financial performance in 2Q25

- Profit before tax decreased by $2.6bn or 29% to $6.3bn compared with 2Q24, primarily due to the recognition of dilution and impairment losses of $2.1bn in BoCom. Profit after tax of $4.9bn was $2.0bn or 29% lower compared with 2Q24. On a constant currency basis, profit before tax decreased by $2.7bn or 30%.

- Revenue fell by $0.1bn to $16.5bn compared with 2Q24. The reduction included the impact of notable items, as mentioned above.