Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 23

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 23
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 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 CIB client. Operating expenses Reported operating expenses of $8.9bn were $0.8bn or 10% higher. There were $0.5bn of costs in 2Q25 related to our organisational simplification, mainly severance costs, and $0.2bn related to strategic disposals and activities to redeploy costs into areas of strategic focus, including asset impairments in Europe. In addition, growth included higher spend and investment in technology, the impacts of inflation and an adverse impact from foreign currency translation differences. These increases were partly offset by a favourable impact from the disposal of our business in Argentina.

| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| 10                                                |

| Overview |     | Interim management report |     | Interim condensed consolidatedfinancial statements |     | Additional information |

On a constant currency basis, operating expenses increased by $0.7bn or 8% . Target basis operating expenses were $0.1bn or 2% higher than in 2Q24, primarily due to higher spend and investment in technology and the impacts of inflation . Share of profit from associates and JVs less impairment Reported share of profit from associates and joint ventures less impairment of $0.2bn was $1.0bn lower, due to the recognition of an impairment of $1.0bn following an impairment test on the carrying value of the Group’s investment in BoCom. Tax expense Tax in 2Q25 was a charge of $1.5bn, representing an effective tax rate of 23.0%, which compared with a charge of $2.1bn in 2Q24, representing an effective tax rate of 23.3%. Both periods included certain material notable items that were not subject to tax , excluding which the effective rate for 2Q25 was 19.2%. The effective tax rate for 2Q24 was increased by 2.5% by charges in respect of prior periods. Ñ For further details on tax notable items, see page 22 .

Balance sheet and capital Balance sheet strength Total assets of $3.2tn were $197bn higher than at 31 December 2024 on a reported basis, and included