Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 53

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 53
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 will be classified as notable items. Capital and dividend policy CET1 ratio 14.9 % Dividend payout ratio in respect of 2024 50% on a dividend payout ratio target basis. At 31 December 2024, our CET1 capital ratio was 14.9 % which was higher than our medium-term target range of 14% to 14.5%. We intend to continue to manage the CET1 ratio to within this range. The total dividend per share in 2024 of $0.87 included a special dividend of $0.21 per share that was paid in June following the completion of the sale of HSBC Bank Canada. On a dividend payout ratio target basis, this resulted in a payout ratio of 50% of earnings per share. For the purposes of computing our target basis dividend payout ratio, we exclude from dividends per share the special dividend of $0.21 per share, and we exclude from earnings per share material notable items and related impacts. See page 130 for our calculation of earnings per share. The Board has established a target basis dividend payout ratio of 50% for 2025 , subject to meeting capital requirements. This policy is designed to provide sustainable cash dividends, while retaining the flexibility to invest and grow the business, supplemented by additional shareholder distributions, if appropriate.

| HSBC Holdings plcAnnual Report on Form 20-F | 25 |

Key financial metrics

| Reported results                                                                                                                                     | For the year ended 31 Dec 
                      2024 |      2023 |      2022 |
|:-----------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------:|----------:|----------:|
| Profit before tax ($m)                                                                                                                               |                    32,309 |    30,348 |    17,058 |
| Profit after tax ($m)                                                                                                                                |                    24,999 |    24,559 |    16,249 |
| Revenue ($m)                                                                                                                                         |                    65,854 |    66,058 |    50,620 |
| Cost efficiency ratio (%)                                                                                                                            |                      50.2 |      48.5 |      64.6 |
| Net interest margin (%)                                                                                                                              |                      1.56 |      1.66 |      1.42 |
| Basic earnings per share ($)                                                                                                                         |                      1.25 |      1.15 |      0.72 |
| Diluted earnings per share ($)                                                                                                                       |                      1.24 |