Company: HBCYF
Filing Date: 2025-02-25
Form Type: 424B5
Source: 0001193125-25-034819
Chunk: 38

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-25
Form: 424B5
Chunk 38
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2A requirements”). At December 31, 2024, our Pillar 2A requirements (set by the PRA) were US$21.8 billion, equivalent to 2.6% of risk weighted assets, of which 1.5% must be met by common equity Tier 1. In addition to the minimum requirements described above, UK credit institutions are required to meet several capital buffers, on a consolidated basis, with common equity Tier 1 capital. The combination of the following buffers constitutes the “combined buffer”: (i) the capital conservation buffer (“CCB”) (which is 2.5% of risk weighted assets); (ii) the global systemically important institutions (“G-SII”)buffer (which, as of January 1, 2025, is 2% of risk weighted assets, and may vary from time to time); and (iii) the countercyclical capital buffer (“CCyB”) (which is a buffer of common equity Tier 1 capital equivalent to the risk weighted assets multiplied by the weighted average of various countercyclical buffer rates that vary over time depending on the S-27

effective rates set by regulators in countries where we have relevant credit exposures – the current UK CCyB rate is 2%). As of December 31, 2024, the HSBC Group’s combined buffer
was 5.2% of risk weighted assets (comprising a CCB, a G-SII and a CCyB buffer of 2.5%, 2.0% and 0.7%, respectively).

In addition to the Pillar 1 requirements and Pillar 2A requirements and the combined buffer, there are other tools that the PRA and other
relevant authorities in the UK have available to them to require UK firms to hold additional capital to address micro-prudential or macro-prudential risks as assessed by
the relevant authorities in the UK. For example, the PRA introduced a firm-specific Pillar 2B buffer (the “PRA buffer”), which is an amount of capital firms should maintain in addition to the total
capital requirements (Pillar 1 requirements and Pillar 2A requirements) and the combined buffer. The PRA buffer absorbs losses which could arise under a severe stress scenario, and is set at a level that the PRA believes will ensure that the firm
can continue to meet minimum Pillar 1 requirements and Pillar 2A requirements as well as to address any