Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 517

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 517
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 for capital adequacy ratio and tier 1 capital adequacy ratio, and long-term effective tax rate, long-term profit growth rate and long-term asset growth rate. The principal considerations for our determination that performing procedures relating to the impairment assessment of the investment in BoCom is a critical audit matter are: (i) the significant judgement by management when determining significant assumptions for the discount rate, operating income growth rate, cost-income ratio, ECL as a percentage of loans and advances to customers, risk-weighted assets as a percentage of total assets, loans and advances to customers growth rate, capital requirements for capital adequacy ratio and tier 1 capital adequacy ratio, long-term effective tax rate, long-term profit growth rate and long-term asset growth rate; (ii) a high degree of auditor judgement, subjectivity and effort in performing procedures and evaluating management's estimate of the VIU and evaluating audit evidence; and (iii) the audit effort involved the use of professionals with specialised skills and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s impairment assessment of the investment in BoCom. These procedures also included, amongst others: (i) evaluating management’s VIU determination and aforementioned underlying significant assumptions; (ii) developing an independent range for discount rate; (iii) evaluating the appropriateness of the methodology used to estimate the VIU; (iv) testing inputs used in the determination of the significant assumptions; and (v) evaluating the disclosures made in the consolidated financial statements in relation to BoCom. Professionals with specialised skill and knowledge were used to assist in assessing the VIU methodology and developing an independent range for discount rate. /s/ PricewaterhouseCoopers LLP London, United Kingdom 20 February 2025 We have served as the Group's auditor since 2015.

| HSBC Holdings plcAnnual Report on Form 20-F | 363 |

Financial statements

| Consolidated income statement                                                                                                                         
 for the year ended 31 December2024                                                                                                                    |        |    2024 |    2023 |    2022 |
|:------------------------------------------------------------------------------------------------------------------------------------------------------|-------:|--------:|--------:|--------:|
|                                                                                                                                                       | Notes* |      $m |      $m |      $m |
| Net interest income                                                                                                                                   |        |  32,733 |  35,796 |  30,377 |
| –  interest