Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 52

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 52
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 identify suspicious activities and prevent financial crime. We will continue to evaluate technological solutions to improve our capabilities in the detection and prevention of financial crime.

Credit risk Overview Credit risk is the risk of financial loss if a customer or counterparty fails to meet an obligation under a contract. It arises principally from direct lending, trade finance and leasing business, but also from other products, such as guarantees and credit derivatives or from holding assets in the form of debt securities. Credit risk in the first half of 2025 There were no material changes to credit risk policy in the first half of 2025. Ñ A summary of our current policies and practices for the management of credit risk is set out in ‘Credit risk management’ on page 139 of the Annual Report and Accounts 2024 . At 30 June 2025 , gross loans and advances to banks and customers of $1,099bn increased by $57bn on a reported basis compared with 31 December 2024. Gross loans and advances to customers increased by $51.5bn and gross loans and advances to banks increased by $5.5bn. This included total favourable foreign exchange movements of $48.2bn. On a constant currency basis, the increase of $8.8bn was driven by an $8.5bn rise in wholesale loans and advances to customers and a $1.7bn rise in loans and advances to banks. These were partly offset by a $1.4bn decrease in personal loans and advances to customers. The rise in wholesale loans and advances to customers was driven by an increase in balances in HSBC UK (up $3.4bn) and in Asia (up $3.3bn), across multiple industry sectors; and in the Middle East (up $1.3bn), mainly in manufacturing and ‘wholesale and retail trade, repair of motor vehicles and motorcycles’. The rise in loans and advances to banks was driven by higher exposures in our entities in Asia (up $4.0bn), partly offset by lower balances in HSBC UK (down $1.4bn) and in HSBC Bank plc (down $1.2bn). The decrease in personal loans and advances to customers was driven by the reclassification to ‘Assets held for sale’ of our home and other retail loans retained in France ($7.2bn), as well as lower credit card balances in our entities in Asia (down $1bn). This was partly offset by mortgage growth of $4.3bn, mainly in HSBC UK