Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001654954-25-012267
Chunk: 39

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 39
---
 their revenue and expense. The total Markets Treasury revenue component of this allocation for 9M25 was $1,819m (9M24: $1,146m).

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

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

A pre-tax loss of $1.2bn in 9M25 compared with a pre-tax profit of $5.2bn in 9M24 on a constant currency basis. The reduction in profit before tax was primarily due to the adverse impact from notable items. In 9M25, these included legal provisions of $1.4bn, a $1.1bn loss from the dilution of our shareholding and a $1.0bn impairment to the carrying value of the Group's interest in our associate Bank of Communications Co., Limited ('BoCom'). In 9M24, notable items included a net $3.6bn gain related to business disposals in Canada and Argentina, as well as a $0.3bn loss related to the early redemption of legacy securities.

The Group's interest in BoCom reduced from 19.03% to 16.00% following the completion of a capital issuance by BoCom on 17 June 2025. The dilution of the Group's interest resulted in a pre-tax loss of $1.1bn, recognised in other operating income/expense in the Group's consolidated income statement. The loss is not deductible for tax purposes as a consequence of our shareholding in BoCom being held for long-term investment purposes. The Group's investment in BoCom continues to be classified as an associate.

In addition, the Group's impairment test performed on the carrying amount at 30 June 2025 resulted in an impairment of $1.0bn, as the recoverable amount as determined by a value-in-use calculation was lower than the carrying value recognised within impairment of interest in associates. Consistent with prior periods, our value-in-use calculation uses both historical experience and market participant views to estimate future cash flows, relevant discount rates and associated capital assumptions.

Neither the dilution loss nor the impairment loss had a material impact on HSBC's capital ratios or distribution capacity. Both amounts are treated as a material notable item, and therefore are excluded from our dividend payout ratio.

We remain strategically committed to mainland China and continue our valued, strategic partnership with BoCom.

Revenue