Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 17

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 17
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 and the impact of retranslating the prior year results of hyperinflationary economies at constant currency. Our target basis operating expenses includes the impact of simplification-related savings associated with our reorganisation, which aims to generate approximately $0.4bn of cost reductions in 2025, with a commitment to an annualised reduction of $1.5bn in our cost base by the end of 2026. To deliver these reductions, we plan to incur severance and other up-front costs of $1.8bn over 2025 and 2026, which will be classified as notable items. Ñ See page 41 for a reconciliation of target basis operating expenses to reported operating expenses. Capital and dividend policy CET1 ratio 14.6% Second interim dividend per ordinary share in respect of 2025 $ 0.10 At 30 June 2025, our CET1 capital ratio was 14.6% , down 0.3 percentage points from 31 December 2024. This was driven by an increase in RWAs, partly offset by an increase in our CET1 capital through profit generation net of distributions. Alongside our 1H25 results, the Board has announced a second interim dividend of $0.10 per ordinary share. Ñ See page 2 for details on our current outlook on our financial targets.

Basis of presentation Constant currency performance Constant currency performance is computed by adjusting reported results of comparative periods for the effects of foreign currency translation differences, which distort period- on-period comparisons. We consider constant currency performance to provide useful information for investors by aligning internal and external reporting, and reflecting how management assesses period-on-period performance. Notable items We separately disclose ‘notable items‘, which are components of our income statement that management considers as outside the normal course of business and generally non- recurring in nature. Certain notable items are classified as ‘material notable items’, a subset of notable items. Categorisation as a material notable item is dependent on the nature of each item in conjunction with the financial impact on the Group’s income statement, and are excluded from our target basis dividend payout ratio calculation and earnings per share measure. Material notable items in 1H25 or relevant comparative periods relate to the following: – Income statement impacts associated with actions to exit or wind down certain businesses to redeploy costs from non- strategic activities into areas where we have a competitive advantage and accretive returns (reported under ‘Disposals, wind-downs, acquisitions and related costs