Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 603

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 603
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, presented in ‘Contractual commitments’, see Note 33 . Further analysis of the movement in the expected credit loss provision is disclosed within the ‘Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan commitments and financial guarantees‘ table on page 192 . Brazil PIS and COFINS tax matters Beginning in the late 1990s, HSBC Bank Brasil S.A. – Banco Múltiplo (‘HSBC Brazil’) and other financial services firms brought legal proceedings in Brazil challenging the assessment of PIS and COFINS taxes, which are federal taxes imposed on gross revenues earned by legal entities in Brazil. The Supreme Court of Brazil selected three cases – one involving an insurer, in 2007, and two involving other banks, in 2011 – to set standards that would apply to all of these proceedings. In June 2023, the court ruled against the financial services firms in all three cases. The standards set by the court in this ruling have not yet been applied to HSBC Brazil’s legacy cases, liability for which remained with HSBC after the sale of HSBC’s operations in Brazil to Bradesco in 2016. There are many factors that may affect the range of outcomes and any resulting financial impact for HSBC. Based upon the information currently available, a provision was recognised in respect of one legacy case. The remaining additional tax liability subject to challenge on all legacy PIS and COFINS cases is up to $ 0.4b n. As at 31 December 2024, no provision has been booked for this amount.

| 438 | HSBC Holdings plcAnnual Report on Form 20-F |

Notes on the financial statements

| 29 | Subordinated liabilities |

| HSBC’s subordinated liabilities    |        |        |
|                                    |   2024 |   2023 |
|                                    |     $m |     $m |
| At amortised cost                  | 25,958 | 24,954 |
| –  subordinated liabilities        | 25,080 | 23,149 |
| –  preferred securities            |    878 |  1,805 |
| Designated at fair value (Note 25) |  9,317 | 11,477 |
| –  subordinated liabilities        |  9,317 | 11,477 |
| –  preferred securities            |      — |      — |
| At 31 Dec