Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 591

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 591
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6b n (2023: $ 10.2b n), and a carrying amount of $ 14.0b n (2023: $ 25.8b n).

| Impairment test results          |                   |              |                      |
| Investments                      | Recoverableamount | Discountrate | Long-termgrowth rate |
|                                  |                $m |            % |                    % |
| HSBC North America Holdings Inc. |                   |              |                      |
| At 31 Dec 2024                   |            13,264 |        11.00 |                 2.25 |
| At 31 Dec2023                    |            12,756 |        10.50 |                 2.17 |

Sensitivities of key assumptions in calculating VIU

At 31 December 2024, the recoverable amount of HSBC Overseas Holdings (UK) Limited remained sensitive to reasonably possible changes in

key assumptions impacting its principal subsidiary, HSBC North America Holdings Inc.

In making an estimate of reasonably possible changes to assumptions, management considers the available evidence in respect of each input

to the model. These include the external range of observable discount rates, historical performance against forecast, and risks attached to the

key assumptions underlying cash flow.

The following table presents a summary of the key assumptions underlying the most sensitive inputs to the model for HSBC North America

Holdings Inc., the key risks attached to each, and details of a reasonably possible change to assumptions where, in the opinion of management,

these could result in a change in VIU.

| Reasonably possible changes in key assumptions                                     |                             |                                                                                                     |                                                                                          |                                                              |
|                                                                                    | Input                       | Key assumptions                                                                                     | Associated risks                                                                         | Reasonably possiblechange                                    |
| Investment                                                                         |                             |                                                                                                     |                                                                                          |                                                              |
| HSBC North America Holdings Inc.(subsidiary of HSBC OverseasHoldings (UK) Limited) | Free cash flows projections | –Level of interest rates andyield curves.–Competitors’ positionswithin the market.                  | –Strategic actionsrelating to revenue andcosts are not achieved.                         | –Free cash flowprojections decreaseby 10%.                   |
|                                                                                    | Discount rate               | –Discount rate used is areasonable estimate of asuitable market rate forthe profile of thebusiness. | –External evidence arisesto suggest that the rateused is not appropriateto the business. | –Discount ratedec