Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 69

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 69
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impairment charges                                           | Change in expected credit losses and other creditimpairment charges as a % of advances: Retail (WPB) | ≤0.50%       | 0.27% |
| Change in expected credit losses and other creditimpairment charges as a % of advances: Wholesale(GBM, CMB) | ≤0.45%                                                                                               | 0.37%        |       |

HSBC’s operations are subject to changes in the economy, financial conditions and geopolitical developments that could have a material impact on the Group’s operations and financial risks. These factors are a significant source of uncertainty that we monitor and review continuously. Despite political and economic uncertainties, global economic growth was resilient in 2024. This was led by strong growth in the US and a mild recovery in the EU, while key emerging markets were supported by monetary policy easing. In the US, performance was supported by household consumption and government spending. In mainland China activity by sector has been uneven, but fiscal and monetary support ensured that the official economic growth target was still met. UK growth remained low despite a fall in inflation and lower interest rates, as consumers continued to prioritise saving. Continued moderate growth is expected in 2025, but the trajectory of US economic and trade policies in the aftermath of the US election, and geopolitical risks such as the ongoing Russia-Ukraine war and conflict in the Middle East, remain key sources of forecast uncertainty. Inflation and high interest rates remain key considerations for policymakers. In the US and Europe, headline inflation rates trended downwards towards central bank target ranges, despite high and persistent services price increases. Disinflation enabled the US Federal Reserve and the ECB to cut their policy rates by 100bps and 75bps respectively, and the Bank of England by 50bps in 2024. Further cuts in interest rates are expected in the US, although the resilience of the economy and the perceived supply chain and inflation risks attached to new and prospective US tariff policies, have led markets to pare back their expectations for rate cuts in 2025. In the Eurozone, interest rates are expected to be cut in order to support growth. Markets also expect the Bank of England to continue to reduce the bank rate throughout 2025. In mainland China, authorities have reduced benchmark policy interest rates to support private sector borrowing as demand for loans has weakened. Further fiscal and monetary easing is expected to support local consumption and offset some of the impact of US tariffs. Fiscal policy, public deficits and indebtedness influence our