Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 56

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 56
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 The increase in reported profit before tax also included revenue growth from Wealth products in WPB and in Equities and Securities Financing in GBM. Reported operating expenses increased by $1.0bn , mainly due to higher spend and investment in technology and the impacts of inflation, partly offset by reductions related to our business disposals in Canada and France, and from a reduction in levies in the UK and the US. Target basis operating expenses rose by 5% compared with 2023, in line with our cost growth target. Reported profit after tax of $25.0bn was $0.4bn higher than in 2023. This included the impact of an increase in the Group’s effective tax rate, notably due to the impact of our business disposals in Canada and Argentina. Reported revenue Reported revenue of $65.9bn was broadly stable. There was growth in revenue from higher customer activity in Wealth in WPB, and in Equities and Securities Financing in GBM. In addition, reported revenue in 2023 included disposal losses of $1.0bn related to Treasury repositioning and risk management. These items were broadly offset by the net adverse impact of certain strategic transactions described above, as well as a $0.2bn loss on the early redemption of legacy securities, and a reduction from the results of the businesses that have now been disposed. NII of $32.7bn fell by $3.1bn , and included the adverse impact of foreign currency translation differences of $1.6bn and the impact from the early redemption of legacy securities of $0.2bn . The reduction included the effect of the disposal of our banking business in Canada. The fall in NII also reflected an increase of $2.7bn in funding costs associated with the redeployment of our commercial surplus into the trading book, where the related revenue is recognised in ’net income on financial instruments held for trading or managed on a fair value basis’. These reductions were in part mitigated by higher NII in HSBC UK, including the benefit of our structural hedge. In Markets Treasury NII increased due to reinvestments in our portfolio at higher yields. Banking NII of $43.7bn fell by $0.4bn or 1%, as increased deployment of our commercial surplus to the trading book partly mitigated the reductions in NII. Revenue in 2024 was adversely affected by a $0.8bn impact of hyperinflationary accounting in Argentina, including the devaluation of the Argentin