Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001089113-25-000056
Chunk: 12

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 12
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 points, which would be recognised following the approval of the relevant resolutions by the requisite majority at each of the Hang Seng Bank Court Meeting and the Hang Seng Bank General Meeting. Having announced our intention not to initiate any further buy-backs for three quarters following the date of the announcement relating to the transaction, we expect CET1 capital to increase prior to completion of the transaction, which subject to Court procedures and the satisfaction of related conditions, including approval of the relevant resolutions by the requisite shareholder majority, is expected in the first half of 2026. While our CET1 capital ratio may fall below our target operating range of 14.0%–14.5% on recognition of the day one capital impact, we expect to restore our capital to within this range through a combination of organic capital generation and the decision not to initiate buy-backs. A decision to recommence buy-backs will be subject to our normal buy-back considerations and process on a quarterly basis.

Reshaping the Group for growth At our 2024 full-year results we announced measures to simplify the Group, and we have committed to deliver an annualised reduction of around $1.5bn in our cost base, expected by the end of 2026 from our organisational simplification programme. We are on track to deliver on our cost commitments. During 9M25, we incurred $0.8bn in costs in relation to our organisational simplification, primarily related to severance. In this period, we have identified and actioned annualised cost saves of approximately $1bn, which resulted in a reduction of around $0.3bn in operating expenses in the income statement in 9M25. We are also focused on opportunities where we have a clear competitive advantage and accretive returns, and we aim to redeploy approximately $1.5bn of additional costs from non-strategic activities into these areas over the medium term. So far in 2025, we have announced 11 transactions, which are set to create incremental investment capacity for growth. This includes two transactions announced in the third quarter: the potential sale of our majority shareholding in HSBC Bank Malta plc and the planned sale of our Sri Lanka retail banking business, subject to works council consultations and regulatory approvals, as relevant. We have also commenced a strategic review of our Egypt retail banking business alongside the previously announced targeted strategic reviews of our retail businesses in Australia and Indonesia, which remain underway and on which no decisions have been made. Our CIB businesses in these markets are unaffected