Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001654954-25-012267
Chunk: 30

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 30
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5 |        37.3 |               |      |                    |
| RoTE excluding notable items (annualised)3(%)       |              34.5 |        37.3 |               |      |                    |

1 For a description of how we derive banking NII, see page 14 . In the Hong Kong business, there are no adjustments to NII to derive banking NII.

2 Includes revenue from Markets Treasury. It also includes other non-product-specific income and notional tax credits.

3 For details of our RoTE calculation by business segment, see page 40 .

4 Impact of strategic transactions classified as material notable items. For further details, see 'Strategic transactions supplementary analysis' on page 31 .

Profit before tax of $7.1bn increased by $0.2bn or 2% compared with 9M24 on a constant currency basis.

Revenue of $11.8bn was $0.6bn or 5% higher on a constant currency basis.

Banking NII of $8.8bn decreased by $0.1bn or 1%. The decrease was due to the impact of lower margins, including a reduction due to lower Hong Kong interbank offered rates ('HIBOR') during the second and third quarters of 2025 relative to 9M24, and from lower lending balances. This was partly offset by deposit balance growth of $24bn or 5% since 30 September 2024 and a lower cost of funding as interest rates fell.

Fee and other income of $3.0bn grew by $0.7bn or 31%, primarily reflecting an increase of $0.6bn or 50% in Wealth from a strong performance in investment distribution due to higher client activity.

ECL of $1.2bn in 9M25 increased by $0.4bn compared with 9M24 on a constant currency basis, including charges in both periods related to the Hong Kong CRE sector. In 9M25, the increased charge in this sector reflected higher allowances for new defaulted exposures, the impact of an over-supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations.

Operating expenses of $3.5bn were $20m lower on a constant currency basis, reflecting the impact of lower operations costs. This was broadly offset by increases reflecting higher planned spend on technology, including the development of our Wealth proposition, and the impact