Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 73

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 73
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 to customers and banks, which were classified to assets held for sale, and corresponding allowance

for ECL of $ 6m , reflecting planned business disposals as disclosed in Note 15 on page 98 .

2 This includes $ 7.2b n of gross carrying loans and advances to customers and corresponding allowance for ECL of $ 7m in relation to the retained portfolio of home

and other loans associated with the sale of our retail banking operations in France, which were classified to assets held for sale in 2Q25, reflecting the planned

disposal as disclosed in Note 15 on page 98 .

T he allowance for ECL for loans and advances to customers and banks and relevant loan commitments and financial guarantees in creased by $ 449 m from $ 10,105 m at 31 December 2024, to $ 10,554 m at 30 June 2025. This increase was driven by: – $ 3,044 m relating to underlying credit quality changes, including the credit quality impact of financial instruments transferring between stages; and – foreign exchange and other movements of $ 536 m. These were partly offset by: – $ 2,029 m of assets written off, of which $ 1,227 m in relation to wholesale lending and $ 802m in relation to personal lending; – $ 930 m relating to volume movements, which included the ECL allowance associated with new originations, assets derecognised and further pending repayment; – $ 163 m relating to changes to models used for ECL calculation; and – $ 9 m relating to the c redit-related modifications that resulted in derecognition. The ECL charge for the period of $ 1,951 m presented in the previous table consisted of $ 3,044 m relating to underlying credit quality changes, including the credit quality impact of financial instruments transferring between stages. These were partly offset by $ 930 m relating to underlying net book volume, as well as $ 163 m relating to changes to models used for ECL calculation, which reflected updates to our PD models.

| Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers includingloan commitments and financial guarantees (continued) |                             |                  |                             |                  |                             |                  |                             |                  |                             |                  |
|                                                                                                                                                                                        |         Non-credit impaired |                  |                             |                  |             Credit impaired |                  |                             |                  |                             |                  |