Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001654954-25-004763
Chunk: 45

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 45
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 Loan and other credit-related commit-ments                     |                        597,231 |  21,175 |     958 |     3 |   619,367 |              -137 |    -121 |     -90 |     - |    -348 |              - |     0.6 |     9.4 |     - |   0.1 |
| Financial guarantees                                           |                         15,353 |   1,397 |     248 |     - |    16,998 |                -8 |      -5 |     -16 |     - |     -29 |            0.1 |     0.4 |     6.5 |     - |   0.2 |
| At 31 Dec 2024                                                 |                      2,365,477 | 117,824 |  23,976 |    93 | 2,507,370 |            -1,296 |  -2,679 |  -6,171 |   -51 | -10,197 |            0.1 |     2.3 |    25.7 |  54.8 |   0.4 |

1 Represents the maximum amount at risk should the contracts be fully drawn upon and clients default.

2 Purchased or originated credit-impaired ('POCI').

Measurement uncertainty and sensitivity analysis of ECL estimates

The recognition and measurement of ECL involves the use of significant judgement and estimation. We form multiple scenarios based on economic forecasts and distributional estimates and apply these to credit risk models to estimate future credit losses. The results are then probability-weighted to determine an unbiased ECL estimate.

Management assessed the current economic environment, reviewed the latest economic forecasts and discussed key risks before selecting the economic scenarios and their weightings.

The Central scenario is constructed to reflect current macroeconomic expectations. Outer scenarios incorporate the crystallisation of economic and geopolitical risks.

Management judgemental adjustments are used where modelled allowance for ECL does not fully reflect the identified risks and related uncertainty, or to capture significant late-breaking events.

Methodology

At 31 March 2025, four economic scenarios were used to capture the latest economic expectations and to articulate management's view of the range of risks and potential outcomes. In each quarter, scenarios are updated with the latest economic forecasts and distributional estimates. Three scenarios - the Upside, Central and Downside - are drawn from external consensus forecasts, market data and distributional estimates of the