Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 68

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 68
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C) refers to adjustments to allowance for ECL made to address process limitations, data/model deficiencies, and can also include, where appropriate, the impact

of new models where governance has sufficiently progressed to allow an accurate estimate of ECL allowance to be incorporated into the total reported ECL. At

30 June 2025 a qualitative industry sector framework adjustment increased the Wholesale portfolio allowance for ECL by $ 0.1b n.

6 As presented within our internal credit risk governance (see page 139 of the Annual Report and Accounts 2024).

In the wholesale portfolio, management judgemental adjustments

were an increase to modelled allowance for ECL of $ 0.2 bn

(31 December 2024: $ 0.1 bn increase), mostly to reflect heightened

uncertainty in specific sectors and geographies, including real estate

sector adjustments as a result of ongoing market challenges.

Compared with 31 December 2024, management judgemental

adjustments increased by $ 0.1b n at 30 June 2025.

In the retail portfolio, management judgemental adjustments were an

increase to modelled allowance for ECL of $ 0.1b n at 30 June 2025

(31 December 2024: $ 0.0b n). Management judgemental adjustments

in relation to other credit judgements increased allowance for ECL by

$ 0.1b n (31 December 2024: $ 0.0b n). Adjustments relate to market-

specific uncertainties across a number of geographies.

Economic scenarios sensitivity analysis of ECL estimates The economic scenarios sensitivity analysis of ECL estimates is detailed on page 156 of the Annual Report and Accounts 2024. Wholesale and retail sensitivity The wholesale and retail sensitivity tables present the 100% - weighted results for each of the four scenarios. These exclude portfolios held by the insurance business, private banking and small portfolios, and as such cannot be directly compared with personal and wholesale lending presented in other credit risk tables. In both the wholesale and retail analysis, the comparative period results for Downside 2 scenarios are also not directly comparable with the current period, because they reflect different risks relative to the consensus scenarios for the period end. The wholesale and retail sensitivity analysis is stated inclusive of management judgemental adjustments, as appropriate to each scenario. For both retail and wholesale portfolios, the gross carrying amount of financial instruments is the same under each scenario. For exposures with similar risk profile and product characteristics, the