Company: HBCYF
Filing Date: 2025-06-02
Form Type: 424B5
Source: 0001193125-25-132352
Chunk: 57

Company: HSBC HOLDINGS PLC
Filing Date: 2025-06-02
Form: 424B5
Chunk 57
---
 policy statements setting out the PRA’s expectations in relation to capital and leverage ratios and the quality of capital. Nonetheless, if the PRA rules, guidance or expectations in relation to
capital or leverage were to be amended in the future in a manner other than as set out in the statements, it could be materially more difficult for the HSBC Group to maintain compliance with prudential requirements.

Applicable accounting rules, or changes to regulatory adjustments that modify the regulatory impact of accounting rules, may affect the
calculation of the CET1 Ratio. In addition, we continue to test and refine our

S-35

models for purposes of determining expected credit losses, and any revisions to our models may result in significant changes to our regulatory capital position. Even if changes in applicable
accounting rules, or changes to regulatory adjustments that modify the regulatory impact of accounting rules, are not yet in force as of the relevant calculation date, the Relevant Regulator could require us to reflect such changes in any particular
calculation of the CET1 Ratio. Moreover, the HSBC Group’s CET1 Ratio is a non-IFRS measure, and our interpretation of the Relevant Rules and the basis of our calculation of this financial measure may be
different from those of other financial institutions. The estimates are also based on a number of assumptions. For further information, see the section entitled “Capital Overview” in the 2024 Form 20-F.

Because of the inherent uncertainty regarding whether a Capital Adequacy Trigger
Event will occur, it will be difficult to predict when, if at all, an Automatic Conversion may occur. Accordingly, the trading behavior of the Securities, including prices, volatility and liquidity, may be affected by any threat of a Capital
Adequacy Trigger Event and, as a result, the Securities are not necessarily expected to follow the trading behavior associated with other types of securities, including our debt securities. As a result, you may not be able to sell your Securities
easily, or at all, or at prices that will provide them with a yield comparable to other types of subordinated securities. In addition, the risk of an Automatic Conversion could lead to a decline in the price of our Ordinary Shares, which could have
a material adverse effect on the market value of the Conversion Shares you receive.

The CET1 Ratio, and more generally, our overall capital position, will be affected by our business decisions and our and your interests may not be aligned.

As discussed in
“—Risks Relating to the Securities—