Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001654954-25-004763
Chunk: 40

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 40
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 view of recent market benchmarks. Resultant changes in property valuations and loan-to-value ratios are monitored closely for appropriate portfolio actions. Broader economic sentiment in Hong Kong remains cautious, with interest rates subject to increased uncertainty given possible inflationary pressures from ongoing trade tensions.

Commercial real estate market conditions in mainland China remain challenging, although some positive sales momentum has been observed in tier one cities. A full recovery is likely to be protracted and dependent on a sustained improvement in underlying sentiment, as well as further government support. We continue to closely monitor market conditions and take steps to proactively manage our commercial real estate portfolios.

In the first quarter of 2025, management adjustments to ECL were applied to reflect sector or portfolio risks that are not fully captured by our models. We continue to monitor, and seek to manage, the potential implications of all the above developments on our customers and our business.

At 31 March 2025 our CET1 ratio decreased to 14.7% from 14.9% at 31 December 2024, and our liquidity coverage ratio ('LCR') was 139%, up from 138% at 31 December 2024.

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For further details of our Central and other economic scenarios, see 'Measurement uncertainty and sensitivity analysis of ECL estimates' on page 40 .

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For further details of management adjustments to ECL, see page 44 .

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For further details on our CET1 ratio, see 'Capital risk' on page 47 .

Credit risk

Summary of credit risk

At 31 March 2025, gross loans and advances to customers of $955bn were $14.4bn higher on a reported basis compared with 31 December 2024. This included total favourable effects of foreign currency translation differences of $12.2bn.

On a constant currency basis, the increase of $2.2bn was driven by higher balances in CIB (up $7.2bn), IWPB (up $1.9bn) and in our UK business (up $1.9bn). These were partly offset by decreases in our Hong Kong business (down $1.6bn) and Corporate Centre (down $7.2bn).

The increase in CIB was driven by higher lending in our legal entities in Asia (up $3.7bn), HSBC Bank plc (up $1.5bn), the Middle East (up $0.8bn) and the US (up $0.6bn