Company: HBCYF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0001654954-25-004763
Chunk: 53

Company: HSBC HOLDINGS PLC
Filing Date: 2025-04-29
Form: 6-K
Chunk 53
---
 to macroeconomic variables.

Group ECL sensitivity results

The allowance for ECL of the scenarios and management judgemental adjustments is highly sensitive to movements in economic forecasts. If the Group allowance for ECL balance was estimated solely on the basis of the Central scenario, Downside scenario or the Downside 2 scenario at 31 March 2025, it would increase/(decrease) as presented in the below table.

|                                  | Retail | Wholesale1 |
| Total Group ECL at 31 Mar        
 20252                            |    $bn |        $bn |
| Reported ECL                     |    2.5 |        2.4 |
| Scenarios                        |        |            |
| 100% consensus Central scenario  |   -0.1 |       -0.3 |
| 100% consensus Upside scenario   |   -0.1 |       -0.7 |
| 100% consensus Downside scenario |    0.0 |        0.5 |
| 100% Downside 2 scenario         |    1.4 |        4.1 |

| Total Group ECL at 31 Dec 20242  |      |      |
| Reported ECL                     |  2.4 |  2.2 |
| Scenarios                        |      |      |
| 100% consensus Central scenario  | -0.1 | -0.2 |
| 100% consensus Upside scenario   | -0.1 | -0.6 |
| 100% consensus Downside scenario |  0.0 |  0.7 |
| 100% Downside 2 scenario         |  1.5 |  4.3 |

1 Includes low credit-risk financial instruments, such as debt instruments at FVOCI, which have high carrying values but low ECL under all the scenarios.

2 ECL sensitivities exclude portfolios utilising less complex modelling approaches for the retail portfolio and defaulted obligors for the wholesale portfolio.

At 31 March 2025, the Group allowance for ECL increased by $0.1bn and $0.2bn in the retail and wholesale portfolios respectively, compared with 31 December 2024.

For the wholesale and retail portfolios, the allowance for ECL under each of the consensus scenarios remained stable when compared with 31 December 2024. As a result of the re-weighting of scenarios, the reported ECL is now more reflective of the downside risks and