Company: HBCYF
Filing Date: 2025-10-28
Form Type: 6-K
Source: 0001089113-25-000056
Chunk: 4

Company: HSBC HOLDINGS PLC
Filing Date: 2025-10-28
Form: 6-K
Chunk 4
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 revenue increased, primarily due to fee and other income growth in Wealth and in Foreign Exchange and Debt and Equity Markets in CIB. Constant currency revenue excluding notable items rose by $2.4bn to $53.3bn compared with 9M24. – NII of $25.6bn increased by $1.1bn compared with 9M24, including an adverse impact of $1.5bn from business disposals in Argentina and Canada, partly offset by the favourable impact of the non-recurrence of a $0.3bn loss in 3Q24 on the early redemption of legacy securities. NII growth was driven by the benefit of our structural hedge, an increase in deposits and lower costs of funding, which mitigated the impact of lower market interest rates. The fall in interest rates reduced the funding costs of the trading book by $1.5bn , which resulted in a fall in banking NII of $0.4bn to $32.4bn . – NIM of 1.57% was stable compared with 9M24, as improved margins in our main markets were offset by the impact of the disposal of our business in Argentina . – ECL were $2.9bn , an increase of $0.9bn compared with 9M24. The increase included $0.6bn of higher charges related to the Hong Kong CRE sector, which reflected higher allowances for new defaulted exposures, the impact of an over-supply of non-residential properties that has put continued downward pressure on rental and capital values, and updates to our models used for ECL calculations . The increase also included a charge against a Middle Eastern exposure in the third quarter. In 9M24, the ECL charge benefited from allowance releases, mainly in the UK, and from a recovery relating to a single CIB client. Annualised ECL charges were 40 bps of average gross loans, including loans and advances classified as held for sale. – Operating expenses increased by $2.7bn or 11% to $27.1bn compared with 9M24. The increase primarily reflected notable items in 9M25, including legal provisions of $1.4bn, restructuring and other related costs associated with our organisational simplification of $0.8bn , and $0.2bn related to strategic transactions . In addition, there was higher planned spend and investment in technology and the impacts of inflation. These increases were partly offset by reductions related to our business disposals