Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 40

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 40
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1Q25, as the benefit of our structural hedge, higher NII in Markets Treasury and a lower funding cost associated with our trading book were partly offset by the impact of lower market interest rates on asset repricing, particularly in Asia due to the reduction in HIBOR. Net interest margin (‘NIM’) for 1H25 of 1.57% was 5 basis points (‘bps’) lower compared with 1H24, mainly due to an adverse impact of foreign currency translation differences and the disposal of our business in Argentina, partly offset by the benefit of our structural hedge . The decrease in NIM in 1H25 included a 4bps unfavourable impact of foreign currency translation differences. NIM for 2Q25 was 1.56% , down 3bps compared with 1Q25, as growth in NII was lower than the increase in average interest-earning assets, mainly in Asia . Interest income for 1H25 of $49.0bn decreased by $6.4bn compared with 1H24. This was primarily due to business disposals in Argentina and Canada, lower market interest rates and a $0.4bn adverse impact from foreign currency translation differences. Interest income of $24.6bn in 2Q25 was $0.2bn higher compared with 1Q25. On a constant currency basis, it decreased by $0.5bn due to the fall in market interest rates.

| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| 21                                                |

| Overview |     | Interim management report |     | Interim condensed consolidatedfinancial statements |     | Additional information |
|          |     | Financial summary         |     |                                                    |     |                        |

Interest expense for 1H25 of $32.2bn decreased by $6.3bn or 16% compared with 1H24. On a constant currency basis, interest expense decreased by $6.2bn, driven by business disposals in Argentina and Canada, and a fall in market interest rates. Interest expense of $16.1bn in 2Q25 was broadly stable compared with 1Q25. On a constant currency basis, it decreased by $0.5bn predominantly due to lower market interest rates. Banking net interest income ø

| Banking net interest income                                                                                                          |              |             |             |             |             |
|                                                                                                                                      | Half-year to |             |  Quarter to