Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001654954-25-004763
Chunk: 5

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 5
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&A and equity capital markets capabilities in Asia and the Middle East. In addition, we have made progress on our announced divestments in our private banking business in Germany, our business in South Africa, and the planned sale of our France life insurance business. We have also launched a strategic review of our business in Malta. The review is at an early stage and no decisions have been made.

Strategic growth opportunities include further enhancing our Wholesale Transaction Banking capabilities, expanding our international businesses and building our Wealth business, particularly in Asia. We also aim to continue to grow in our home markets in Hong Kong and the UK, focusing on small and medium-size enterprises, digital capabilities and improving our product proposition.

In 1Q25, we generated fee and other income of $2.9bn from Wholesale Transaction Banking, an increase of 10% compared with 1Q24, or 13% on a constant currency basis, reflecting growth in Global Foreign Exchange. Wealth balances as at 31 March 2025, across all of our business segments, were $1.9tn, an increase of 7% compared with the same period last year. Within this we have attracted net new invested assets of $22bn in the first three months of 2025, with $16bn booked in Asia. In the first three months of 2024, net new invested assets were $27bn, with $19bn booked in Asia. Total Wealth fee and other income across all of our business segments was up $0.4bn or 21% compared with 1Q24, or 23% on a constant currency basis, with the increase mainly in Asia. There was a strong performance in our insurance business, which was up 13%, and growth in insurance manufacturing new business contractual service margin ('CSM') of $1.1bn, up 44% compared with 1Q24.

While the external environment is now more uncertain, our strategy remains unchanged and we approach this period from a position of strength. We have assessed plausible downside scenarios that model significantly higher tariffs, and related impacts on growth, policy rates and inflation on our earnings. Under these scenarios, we anticipate a low single-digit percentage direct impact on the Group's revenue and around $0.5bn in incremental ECLs. The broader impacts of the current conditions are more difficult to quantify, and we will continue to monitor these as we formulate our ongoing outlook.

Business disposals

Retained portfolio of home and other loans in France

Following the sale of our