Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 305

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 305
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 commitments and financial guarantees following the sale of our banking business in Argentina during 2024. As shown in the above table, the allowance for ECL for loans and advances to customers and banks and relevant loan commitments and financial guarantees decreased by $ 1,044m during the period from $ 8,603m at 31 December 2023 to $ 7,559m at 31 December 2024 . This decrease was driven by: – $ 2,925m of assets written off; – $ 1,372m relating to volume movements, which included the allowance for ECL associated with new originations, assets derecognised and further lending/repayments; and – $ 144m relating to changes to models used for ECL calculation. These were partly offset by: – $ 3,306m relating to credit quality changes, including the credit quality impact of financial instruments transferring between stages; – foreign exchange and other movements of $ 67m ; and – $ 24m relating to the net remeasurement impact of stage transfers. The ECL charge for the period of $ 1,814m presented in the previous table consisted of $ 3,306m relating to credit quality changes, including the credit quality impact of financial instruments transferring between stages and $ 24m relating to the net remeasurement impact of stage transfers. This was partly offset by $ 1,372m relating to underlying net book volume movement and $ 144 m in changes to models used for ECL calculation. During the period, there was a net transfer between stage 1 and stage 2 of $ 15,809m gross carrying/nominal amounts. It was primarily driven by our entities in Asia ( $ 12,878m ), mainly due to deterioration in the real estate and construction sectors, and in our main entity in the US ( $ 1,986m ) and Mexico ( $ 1,805m ), partly offset by improvements in the economic outlook that led to upgrades to stage 1 exposures, primarily in our legal entities in the UK( $ 3,077m ). A summary of basis of preparation is available on page 191.

| 204 | HSBC Holdings plcAnnual Report on Form 20-F |

Risk review

| Wholesale lending – reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks andcustomers including loan commitments and financial guarantees |                             |                  |                             |                  |                             |                  |                             |                  |