Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001654954-25-008629
Chunk: 3

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 3
---
 Excluding these, revenue increased primarily due to fee and other income growth in Wealth in our IWPB and Hong Kong business segments, supported by higher customer activity, and in Foreign Exchange and in Debt and Equity Markets, driven by volatile market conditions. Constant currency revenue excluding notable items rose by $0.8bn to $17.7bn.

- NIM of 1.56% decreased by 3 bps compared with 1Q25, driven by lower margins in Asia.

- ECL of $1.1bn were $0.7bn higher than in 2Q24. The charge in 2Q25 included charges related to the Hong Kong CRE sector. This reflected updates to our models used for ECL calculations, an increase in allowances for new defaulted exposures, as well as the over-supply of non-residential properties putting continued downward pressure on rental and capital values. In 2Q24, the ECL charge benefited from a release of allowances in the UK and from a recovery relating to a single Corporate and Institutional Banking ('CIB') client.

- Operating expenses of $8.9bn rose by $0.8bn or 10% compared with 2Q24. The increase was related to restructuring and other related costs associated with our organisational simplification, and from higher spend and investment in technology. These increases were partly offset by the impact of the disposal of our business in Argentina.

- Customer lending increased by $37bn compared with 1Q25 on a reported basis and by $5bn on a constant currency basis.

- Customer accounts increased by $52bn compared with 1Q25 on a reported basis and by $2bn on a constant currency basis.

Outlook

- We operate in a global environment characterised by constant change and uncertainty, creating volatility in both economic forecasts and financial markets. The Group is well positioned to manage the impacts of these challenges and is focused on delivering the best outcomes for our customers.

- We continue to target a mid-teens RoTE in each of the three years from 2025 to 2027 excluding notable items. We also continue to expect banking NII of around $42bn in 2025 based on our latest modelling, recognising the favourable impacts of foreign exchange rates and the adverse effect of the fall in the Hong Kong Interbank Offered Rate ('HIBOR'), particularly during 2Q25.

- The Group is well positioned to manage the changes and uncertainties prevalent within the global environment in which we operate, including