Company: HBCYF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0001654954-25-008629
Chunk: 4

Company: HSBC HOLDINGS PLC
Filing Date: 2025-07-30
Form: 6-K
Chunk 4
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 in relation to tariffs. We have modelled a disruptive tariff scenario that includes significant reductions in policy rates, together with broader macroeconomic deterioration. While we would expect the direct impact from tariffs to have a relatively modest impact on our revenue, the broader macroeconomic deterioration may see RoTE excluding notable items fall outside of our mid-teens targeted range in future years.

- We now expect ECL charges as a percentage of average gross loans to be around 40bps in 2025 (including loans held for sale balances). This reflects continuing challenging market conditions in the Hong Kong CRE sector.

- The Group remains on track to deliver on our cost target. Our growth in target basis operating expenses in 2025 compared with 2024 remains approximately 3%. Our cost target includes the impact of simplification-related saves associated with our announced reorganisation.

- We continue to expect demand for lending to remain muted during 2025. However, over the medium to long term we expect mid-single digit percentage growth for year-on-year customer lending balances.

- We continue to expect double-digit percentage average annual growth in fee and other income in Wealth over the medium term.

- We intend to manage the CET1 capital ratio within our medium-term target range of 14% to 14.5%, with a dividend payout ratio target basis of 50% for 2025, excluding material notable items and related impacts.

u Our targets and expectations reflect our current outlook for the global macroeconomic environment and market-dependent factors, such as market-implied interest rates (as of mid-July 2025) and rates of foreign exchange, as well as customer behaviour and activity levels.

u We do not reconcile our forward guidance on RoTE excluding the impact of notable items, target basis operating expenses, dividend payout ratio target basis or banking NII to their equivalent reported measures.

u For further details, please refer to the following pages of our Interim Report 2025: pages 18 to 19 for a further explanation of RoTE excluding notable items, banking NII, target basis operating expenses and dividend payout ratio target basis. For further information on our CET1 ratio, see page 67.

Key financial metrics

|                                                                     | Half-year to |             |
|                                                                     |  30 Jun 2025 | 30 Jun 2024 |
| Reported results                                                    |              |             |
| Profit before tax ($m)                                              |       15,810 |      21,556 |
| Profit after tax ($m)                                               |       12,441