Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 599

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 599
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 6.9b n) at 31 December 2024. As a result, we reclassified the portfolio to a hold-to-collect-and-sell business model from

1 January 2025 and will measure it prospectively from the first quarter of 2025 at fair value through other comprehensive income. We expect to

recognise an estimated $ 1b n fair value pre-tax loss in other comprehensive income on the remeasurement of the financial instruments. The

valuation of this portfolio of loans may be substantially different in the event of a sale due to entity and deal-specific factors, including funding

costs and the value of customer relationships. In the event of a sale, upon completion, the cumulative fair value changes recognised through

other comprehensive income, which would reflect the terms of an agreed sale, would reclassify to the income statement. In December 2024,

we entered into non-qualifying economic hedges, hedging interest rate risk on the portfolio and recognised a $ 0.1b n mark-to-market gain year-

to-date.

Canada banking business

On 28 March 2024, HSBC Overseas Holdings (UK) Limited, a direct subsidiary of HSBC Holdings plc, completed the sale of HSBC Bank Canada

to the Royal Bank of Canada.

The completion of the transaction resulted in a gain on sale of $ 4.8b n, inclusive of the recycling of $ 0.6b n in foreign currency translation reserve

losses and $ 0.4b n in other reserves losses. The gain on sale also included $ 0.3b n in fair value gains recognised on the related foreign exchange

hedges in the first quarter of 2024. There was no tax on the gain recognised at completion due to the substantial shareholding exemption rule

in the UK.

Following the completion of this transaction, the Board approved a special dividend of $ 0.21 per share, which was paid in June 2024 alongside

the first interim dividend.

| 434 | HSBC Holdings plcAnnual Report on Form 20-F |

Notes on the financial statements

Argentina business On 6 December 2024, HSBC Latin America B.V. completed the sale of its business in Argentina to Grupo Financiero Galicia (‘Galicia‘). Galicia acquired all of HSBC Argentina’s business covering banking, asset management and insurance, together with $ 100m of subordinated debt issued by HSBC Argentina and held by HSBC Latin