Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 172

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 172
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 — |   -38,656 |
| Combined customer deposits at constant currency                                       | 1,660,354 | 1,658,941 |

1 On 9 April 2024, HSBC Latin America B.V. entered into a binding agreement to sell its business in Argentina to Grupo Financiero Galicia (‘Galicia‘). The sale was completed on 6 December 2024, so is not included in the table above. Balance sheet commentary compared with 31 December 2023 At 31 December 2024, total assets of $3.0tn were $22bn or 1% lower on a reported basis and increased by $45bn or 1% on a constant currency basis. Reported loans and advances to customers as a percentage of customer accounts was 56.2% compared with 58.2% at 31 December 2023. The movement in this ratio reflected a higher growth in customer accounts than in lending. Assets Cash and balances at central banks decreased by $18bn or 6% , which included an $11bn adverse impact of foreign currency translation differences. The decrease was mainly in HSBC UK, reflecting a reduction in repurchase agreements, as well as an increase in the deployment of our cash surplus into financial investments. Cash also decreased in our legal entities in the US to a partial redeployment of surplus liquidity to reverse repurchase agreements, and in Hong Kong due to lower balances maintained for faster payment system flow. This was partly offset by increases in HSBC Bank plc from an increase in deposit bank balances and issuances of new commercial paper and certificates of deposit. Trading assets increased by $26bn or 9% , mainly as we captured increased client activity in equity and debt securities, particularly in our legal entity in Hong Kong and in HSBC Bank plc. The increase in trading assets also reflected the use of surplus liquidity to fund trading activities given the subdued demand for customer lending. Derivative assets increased by $39bn or 17% , reflecting an increase in foreign exchange contracts, mainly in HSBC Bank plc and our legal entities in Asia, as a result of foreign exchange rate movements. The increase in derivative assets was consistent with the increase in derivative liabilities, as the underlying risk is broadly matched. Loans and advances to customers of $931bn decreased by $8bn or 1% on a reported basis. This included an adverse impact of foreign currency translation differences of $21bn . Loans and advances to customers are net of allowances for ECL. On a