Company: HBCYF
Filing Date: 2025-06-02
Form Type: 424B5
Source: 0001193125-25-132352
Chunk: 48

Company: HSBC HOLDINGS PLC
Filing Date: 2025-06-02
Form: 424B5
Chunk 48
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changes thereto. In particular, the continuing progress in the implementation of international principles and EU and domestic rules and regulations (including such rules and regulations in the UK or in other jurisdictions in which the HSBC Group
operates) around additional loss absorbing capacity (such as TLAC and MREL) are expected to increase current capital and leverage requirements. These factors could limit the payment of dividends and distributions to us by our subsidiaries, and to
the extent that we are dependent on the receipt of such dividends and distributions, as opposed to other sources of income, such as interest and other payments from our subsidiaries, this could in time restrict our ability to fund other operations
or to maintain or increase our Distributable Items.

The level of our Distributable Items may be further affected by changes to regulation
or the requirements and expectations of applicable regulatory authorities. In particular, capital or ring fencing requirements, both in the UK and in other jurisdictions where we have significant operations, could adversely affect our Distributable
Items in the future, such as the internal MREL requirements applicable to our UK and EU banking operations, and the regulatory capital and internal TLAC requirements and buffers applicable to intermediate holding companies (“IHCs”) in the
United States and potential restrictions on such IHCs’ ability to engage in capital distributions.

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Further, our Distributable Items may be adversely affected by the performance of the HSBC
Group’s business in general, factors affecting its financial position (including capital and leverage), the economic environment in which the HSBC Group operates and other factors outside of our control. See “—Risks Relating to HSBC’s Business.” In cases of material distress at the group level or at certain subsidiaries, regulatory authorities could write down (including to zero) or convert to common equity loans we have made to subsidiaries that qualify as
internal MREL or internal TLAC, which could adversely affect our Distributable Items.

Our Distributable Items are also sensitive to the
accounting impact of factors such as the redemption of preference shares and impairment charges and the carrying value of our investments in subsidiaries, which are carried at the lower of cost and their prevailing recoverable amount. Recoverable
amounts depend on discounted future cash flows, which can be affected by restructurings, whether carried out for strategic reasons, to give effect to regulatory requirements or otherwise. Any of these factors could limit our ability to maintain
sufficient Distributable Items.

Our holding company structure may mean that our rights to participate in assets of any of our