Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 36

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 36
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 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 operating expenses associated with actions to exit or wind down non-strategic businesses. They also include a dilution loss and the recognition of an impairment of our investment in BoCom, as well as the impacts of transactions completed in previous periods, including the sale of our retail banking operations in France, the sale of our banking business in Canada and the disposal of our business in Argentina. Ñ The tables on pages 26 to 27 and pages 34 to 36 detail the effects of notable items on each of our business segments, legal entities and selected countries/territories in 1H25 and 1H24. Impact of strategic transactions In addition to the items categorised as material notable items, the impacts of strategic transactions include the distorting impact observed between the periods of the operating income statement results related to acquisitions and disposals that affect period-on-period comparisons. Once a transaction has completed, the impact will include the operating income statement results of each business, which are not classified as notable items, in any comparative period if there are no results in the current period. We consider the monthly impact of distorting income statement results when calculating the impact of strategic transactions. Impact of hyperinflationary accounting The sale of our business in Argentina, previously treated as a hyperinflationary economy for accounting purposes, was completed in 2024. We continue to treat Türkiye as a hyperinflationary economy for accounting purposes. The impact of applying International Accounting Standard (‘IAS’) 29 ‘Financial Reporting in Hyperinflationary Economies’ and the hyperinflation provisions of IAS 21 ’The Effects of Changes in Foreign Exchange Rates’ in the current period for our operations in Türkiye was a decrease in the Group’s profit before tax of $78m (1H24: $89m), comprising a decrease in revenue, including loss on net monetary position, of $79m (1H24: $85m) and a decrease in ECL and operating expenses of $1m (1H24: increase of $4m). The consumer price index at 30 June 2025 for Türkiye was 3,132, with an increase in the period of 448 (1H24: 460 increase).

Use of alternative performance measures Our reported results are prepared in accordance with International Financial Reporting Standards as