Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001654954-25-012267
Chunk: 54

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 54
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 balances transferred to stage 2 consisted of up-to-date loans mainly in the 'Good' and 'Satisfactory' credit quality buckets.

At 30 September 2025, the allowance for ECL of $11.1bn comprised $10.6bn in respect of assets held at amortised cost, $0.4bn in respect of loan commitments and financial guarantees, and $0.1bn in respect of debt instruments measured at FVOCI.

On a constant currency basis, the allowance for ECL in relation to loans and advances to customers increased by $0.4bn, mainly due to increases in stage 3.

The ECL charge for the first nine months of 2025 was $2.9bn (9M24: $2.1bn), inclusive of recoveries. It comprised: $1.2bn in respect of the Hong Kong business segment; $0.6bn in respect of the UK business segment; $0.5bn in respect of CIB; and $0.7bn in respect of IWPB.

For further details on ECL charges in each of our business segments, see pages 18 and 44 .

ECL charges in the mainland China CRE sector were immaterial in 9M25. ECL charges in the Hong Kong CRE sector (excluding exposure to mainland China borrowers) were $0.2bn in 3Q25 and $0.7bn in 9M25. This reflected updates to our models used for ECL calculations, an increase in allowances for new defaulted exposures, as well as continued negative migration in the portfolio as market conditions remained challenging.

| Summary of financial instruments to which the impairment       
 requirements in IFRS 9 are applied - by business segment at 30 
 September 2025                                                 |                               |         |           |         |                 |           |                          |        |        |        |                 |         |
|                                                                | Gross carrying/nominal amount |         |           |         |                 |           |       Allowance for ECL1 |        |        |        |                 |         |
|                                                                |                     Hong Kong |      UK |       CIB |    IWPB | CorporateCentre |     Total |                Hong Kong |     UK |    CIB |   IWPB | CorporateCentre |   Total |
|                                                                |                            $m |      $m |        $m |      $m |              $m |        $m |                       $m |     $m |