Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001654954-25-012267
Chunk: 63

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 63
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 |       3,693 |
| Credit impaired                                                   |       6,357 |       5,141 |       4,554 |
| At                                                                |      31,033 |      31,918 |      33,201 |
| Allowance for ECL                                                 |      -1,062 |        -877 |        -405 |

1 The shift of 'gross carrying amount' between stage 1 and 2 arose mainly in Asia from higher average PD for the remaining term at the reporting date, reflecting updates to our PD models and ongoing market challenges. PDs at the reporting date were compared with the PD calculated at origination.

The Hong Kong CRE portfolio (excluding exposure to mainland China borrowers) saw further allowances for ECL in the third quarter of 2025 driven by continued negative migration in the secured book, which accounts for 59% of the total portfolio (30 June 2025: 58% and 31 December 2024: 54%), as well as sustained pressure on property prices, particularly in the 'credit impaired' portfolio.

'Sub-standard' and 'credit-impaired' exposures increased to $8.9bn (30 June 2025: $8.5bn and 31 December 2024: $8.2bn), of which 95% was secured (30 June 2025: 94% and 31 December 2024: 92%). As at 31 August 2025, the weighted average loan to value ('LTV'):

- of performing exposures rated 'sub-standard' was 43% (30 June 2025: 45% and 31 December 2024: 46%). There was immaterial exposure with an LTV of greater than 70%, unchanged compared with 30 June 2025 (31 December 2024: $0.1bn); and

- of 'credit-impaired' exposures was 65% (30 June 2025: 67% and 31 December 2024: 58%). Within this portfolio, $1.7bn had an LTV of greater than 70% (30 June 2025: $1.4bn and 31 December 2024: $1.2bn).

Collateral information and LTV calculations were based on total limits, inclusive of off-balance sheet commitments of $43.7bn as of 31 August 2025 (30 June 2025: $43.9bn and 31