Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 587

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 587
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 and advances to customers: ranges from 0.74% to 0.93% (2023: 0.80% to 0.97% ) in the short to medium term, reflecting reported credit experience in mainland China. For periods after 2028, the ratio is 0.97% (2023: 0.97% ), which is higher than BoCom’s average ECL as a percentage of loans and advances to customers in recent years prior to the Covid-19 pandemic. – Risk-weighted assets as a percentage of total assets: ranges from 62.0% to 62.5% (2023: 62.0% to 63.7% ) in the short to medium term, reflecting higher risk-weights in the short term followed by an expected reversion to recent historical levels. For periods after 2028, the ratio is 62.0% (2023: 62.0% ), which continues to be similar to BoCom’s actual results in recent years. – Loans and advances to customers growth rate: ranges from 7.5% to 9.5% (2023: 9.0% to 10.0% ) in the short to medium term, which is similar to BoCom’s actual results in recent years. Changes in the forecast growth rate of loans and advances to customers are likewise reflected in the forecast ECL. – Operating income growth rate: ranges from 0.1% to 9.9% (2023: - 0.4% to 9.7% ) in the short to medium term, which is similar to BoCom’s actual results in recent years, and is impacted by projections of net interest income in the short term as a consequence of recent macroeconomic, policy and industry factors in mainland China. – Cost-income ratio: ranges from 34.6% to 39.8% (2023: 35.5% to 39.8% ) in the short to medium term. These ratios are similar to BoCom’s actual results in recent years. – Long-term effective tax rate: 15.0% (2023: 15.0% ) for periods after 2028, which is higher than the recent historical average, and aligned to the minimum tax rate as proposed by the OECD/Group of 20 (‘G20’) Inclusive Framework on Base Erosion and Profit Shifting. – Capital requirements: capital adequacy ratio