Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 11

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 11
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 their equivalent reported measures. Ñ See pages 18 to 19 for a further explanation of RoTE excluding notable items, banking NII, target basis operating expenses and dividend payout ratio target basis. For further information on our CET1 ratio, see page 67 .

Reshaping the Group for growth – At our 2024 full-year results we announced measures to simplify the Group, and we have committed to deliver an annualised reduction of around $1.5bn in our cost base, expected by the end of 2026 from our organisational simplification programme. We are on track to deliver on our cost commitments. During 1H25, we incurred $0.6bn in costs in relation to our organisational simplification. These were primarily related to severance, with an estimated annualised reduction in our cost base of $0.7bn. By the end of 2025, we expect to have identified and actioned annualised cost saves of approximately $1bn, which would result in a reduction of around $0.4bn in operating expenses in the income statement in 2025. – We are also focused on opportunities where we have a clear competitive advantage and accretive returns, and we aim to redeploy approximately $1.5bn of additional costs from non-strategic activities into these areas over the medium term. – We continue to make progress on actions previously announced, including the wind- down of our mergers and acquisitions (‘M&A’) and equity capital markets activities in the UK, Europe and the US, and planned divestments of our private banking business in Germany, our business in South Africa, our France life insurance business and our Bahrain retail banking operations, subject to local legal and other requirements. – During 2Q25, we announced the planned sale of our custody business in Germany and completed the sale of our stake in Grupo Galicia. In July 2025, we agreed the sale of our UK life insurance business, our fund administration business in Germany, our business in Uruguay, and our retained portfolio of home and certain other loans associated with the disposal of our retail banking operations in France. The portfolio sale will result in the recycling to the income statement of $1.4bn (as at 30 June 2025) in accumulated fair value losses recognised through other comprehensive income at completion, expected in the second half of 2025. – Earlier this year, we also commenced targeted strategic reviews of four retail businesses in Asia: Australia, Indonesia and Sri Lanka,