Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001089113-25-000052
Chunk: 21

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 21
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 1H25 period also included allowances to reflect heightened uncertainty and a deterioration in the forward economic outlook due to geopolitical tensions and higher trade tariffs. In 1H24, the ECL charge benefited from allowance releases, mainly in the UK and from a recovery relating to a single CIB client. On a constant currency basis, ECL charges were $0.9bn higher than in 1H24. Operating expenses Reported operating expenses of $17.0bn were $0.7bn or 4% higher. The increase was driven by $0.6bn of restructuring and other related costs in 1H25 related to our organisational simplification, mainly severance costs that are classified as notable items. It also included an increase of $0.1bn related to strategic transactions, including asset impairments in Europe. In addition, growth included higher spend and investment in technology and the impacts of inflation. These increases were partly offset by reductions following the completion of business disposals in Canada and Argentina, the impact of our restructuring activities, and a favourable impact from foreign currency translation differences of $0.1bn . On a constant currency basis, operating expenses increased by $0.8bn or 5% . Target basis operating expenses were $0.4bn or 3% higher than in 1H24 due to higher spend and investment in technology and the impacts of inflation . Share of profit from associates and JVs less impairment Reported share of profit from associates and joint ventures less impairment of $0.7bn was $1.0bn or 60% lower, due to an impairment loss of $1.0bn recognised on BoCom following our value-in-use assessment made at 30 June 2025, more details of which can be found in Note 10 on the interim condensed consolidated financial statements. This was partly offset by an increase in the share of profit from Saudi Awwal Bank (‘SAB’). Tax expense Tax in 1H25 was a charge of $3.4bn , representing an effective tax rate of 21.3%, which compared with a charge of $3.9bn in 1H24, representing an effective tax rate of 18.1%. Both periods included certain material notable items that were not subject to tax, excluding which the effective rate for 1H25 was 19.7%, compared with 21.4% for 1H24. Ñ For further details on tax notable items, see page 22 . Second interim