# EDGAR Filing Document

**Accession Number:** 0001140465
**File Stem:** 0001140465-25-000113
**Filing Date:** 2025-7
**Character Count:** 282331
**Document Hash:** 922493486a60d1b7048260b77b969251
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001140465-25-000113.hdr.sgml**: 20250730

**ACCESSION NUMBER**: 0001140465-25-000113

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 91

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250730

**DATE AS OF CHANGE**: 20250730

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HSBC BANK PLC
- **CENTRAL INDEX KEY:** 0001140465
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMERCIAL BANKS, NEC [6029]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** X0
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-12364
- **FILM NUMBER:** 251166079

**BUSINESS ADDRESS:**
- **STREET 1:** 8 CANADA SQUARE
- **STREET 2:** LEVEL 3
- **CITY:** LONDON
- **STATE:** X0
- **ZIP:** E14 5HQ
- **BUSINESS PHONE:** 00447796704226

**MAIL ADDRESS:**
- **STREET 1:** 8 CANADA SQUARE
- **STREET 2:** LEVEL 3
- **CITY:** LONDON
- **STATE:** X0
- **ZIP:** E14 5HQ

?xml version='1.0' encoding='ASCII'? hbeu-20250630

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K** 

**REPORT OF FOREIGN PRIVATE ISSUER** 

**PURSUANT TO RULE 13a-16 OR 15d-16 UNDER** 

**THE SECURITIES EXCHANGE ACT OF 1934**

For the month of July 2025

Commission File Number: 001-12364

**HSBC Bank plc**

8 Canada Square, London E14 5HQ, England

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F).

Form 20-F X Form 40-F ......

This Report on Form 6-K with respect to our interim results for the six-month period ended June 30, 2025 is hereby

incorporated by reference in HSBC Bank plc's registration statement on Form F-3 (File No. 333-267182).

Neither our website referred to herein, nor any of the information contained on our website, is incorporated by reference in the

Form 6-K.

---

| | |
|:---|:---|
| **1** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Cautionary statement regarding forward-looking statements

Contents<br>

---

| | |
|:---|:---|
| **<u>[1](#i8ab2a707e9934415b43c6e47db159947_10)</u>** | Presentation of information |
| **<u>[1](#i8ab2a707e9934415b43c6e47db159947_10)</u>** | Cautionary statement regarding forward-looking statements |
|  | **Overview** |
| **<u>[3](#i8ab2a707e9934415b43c6e47db159947_4481)</u>** | Key financial metrics |
| **<u>[4](#i8ab2a707e9934415b43c6e47db159947_4730)</u>** | Purpose and strategy |
| **<u>[4](#i8ab2a707e9934415b43c6e47db159947_4760)</u>** | Business segments |
| **<u>[5](#i8ab2a707e9934415b43c6e47db159947_4819)</u>** | Economic background and outlook |
|  | **Interim management report** |
| **<u>[6](#i8ab2a707e9934415b43c6e47db159947_4846)</u>** | Financial summary |
| **<u>[9](#i8ab2a707e9934415b43c6e47db159947_3299)</u>** | Reconciliation of alternative performance measures |
| **<u>[10](#i8ab2a707e9934415b43c6e47db159947_4512)</u>** | Risk |
| **<u>[10](#i8ab2a707e9934415b43c6e47db159947_88)</u>** | – Risk overview |
| **<u>[11](#i8ab2a707e9934415b43c6e47db159947_91)</u>** | – Managing risk |
| **<u>[12](#i8ab2a707e9934415b43c6e47db159947_94)</u>** | – Top and emerging risks |
| **<u>[12](#i8ab2a707e9934415b43c6e47db159947_115)</u>** | – Key developments in the first half of 2025 |
| **<u>[12](#i8ab2a707e9934415b43c6e47db159947_118)</u>** | – Credit risk |
| **<u>[24](#i8ab2a707e9934415b43c6e47db159947_3023)</u>** | – Treasury risk |
| **<u>[28](#i8ab2a707e9934415b43c6e47db159947_6078)</u>** | Board Changes |
|  | **Interim condensed financial statements** |
| **<u>[29](#i8ab2a707e9934415b43c6e47db159947_214)</u>** | Interim condensed financial statements |
| **<u>[36](#i8ab2a707e9934415b43c6e47db159947_5070)</u>** | Notes on the interim condensed financial statements |

---

None of the websites referred to in this Interim Report on Form 6-K

for the half-year ended June 30, 2025 (the 'Form 6-K'), including

where a link is provided, nor any of the information contained on such

websites is incorporated by reference in the Form 6-K

Presentation of information

This document comprises theForm 6-K for HSBC Bank plc ('the bank'

or 'the company') and its subsidiaries (together 'the group'). 'We',

'us' and 'our' refer to HSBC Bank plc together with its subsidiaries.

References to 'HSBC', 'HSBC Group' or 'the Group' within this

document mean HSBC Holdings plc together with its subsidiaries.

Within the Interim management report and Condensed financial

statements and related notes, the group has presented income

statement figures for the six months to 30 June 2025 with the same

period in the prior year to illustrate the current performance

compared with the same period in prior year. Unless otherwise

stated, commentary on the income statement compares the six

months to 30 June 2025 with the same period in the prior year.

Balance sheet commentary compares the position at 30 June 2025 to

31 December 2024.

In accordance with IAS 34 'Interim Financial Reporting', the Form 6-K

is intended to provide an update on the Annual Report and Accounts

2024 and therefore focuses on events during the first six months of

2025, rather than duplicating information previously reported.

Our reporting currency is £ sterling. Unless otherwise specified, all $

symbols represent US dollars.

Cautionary statement regarding

forward-looking statements

This Form 6-K contains certain forward-looking statements with

respect to the company's financial condition; results of operations

and business, including the strategic priorities; financial, investment

and capital targets; and the company's ability to contribute to the

HSBC Group's environmental, social and governance ('ESG')

ambitions, targets and commitments.

Statements that are not historical facts, including statements about

the company's beliefs and expectations, are forward-looking

statements. Words such as 'may', 'will', 'should', 'expects', 'targets',

'anticipates', 'intends', 'plans', 'believes', 'seeks', 'estimates',

'potential' and 'reasonably possible', or the negative thereof, other

variations thereon or similar expressions are intended to identify

forward-looking statements. These statements are based on current

plans, information, data, estimates and projections, and therefore

undue reliance should not be placed on them. Forward-looking

statements speak only as of the date they are made. The company

makes no commitment to revise or update any forward-looking

statements to reflect events or circumstances occurring or existing

after the date of any forward-looking statements. Written and/or oral

forward-looking statements may also be made in the periodic reports

to the US Securities and Exchange Commission, offering circulars

and prospectuses, press releases and other written materials, and in

oral statements made by the company's Directors, officers or

employees to third parties, including financial analysts. Forward-

looking statements involve inherent risks and uncertainties.

Readers are cautioned that a number of factors could cause actual

results to differ, in some instances materially, from those anticipated

or implied in any forward-looking statement. These include, but are

not limited to:

–changes in general economic conditions in the markets in which

the company operates, such as new, continuing or deepening

recessions, prolonged inflationary pressures and fluctuations in

employment levels and the creditworthiness of customers beyond

those factored into consensus forecasts; the Russia-Ukraine war

and the conflict in the Middle East and their impact on global

economies and the markets where the company operates, which

could have a material adverse effect on (among other things) the

company's financial condition, results of operations, prospects,

liquidity, capital position and credit ratings; deviations from the

market and economic assumptions that form the basis for the

company's expected credit losses ('ECL') measurements

(including, without limitation, as a result of the Russia-Ukraine war

and the conflict in the Middle East, inflationary pressures and

commodity price changes); changes and volatility in foreign

exchange rates and interest rates levels; volatility in equity

markets; lack of liquidity in wholesale funding or capital markets,

which may affect the company's ability to meet its obligations

under financing facilities or to fund new loans, investments and

businesses; geopolitical tensions or diplomatic developments

producing social instability or legal uncertainty, such as the Russia-

Ukraine war or the conflict in the Middle East (including the

continuation or escalation thereof) and the related imposition of

sanctions, export-control and trade restrictions, supply chain

restrictions and disruptions (including as a result of any potential

further escalation of the conflict between Iran and Israel),

sustained increases in energy prices and key commodity prices,

claims of human rights violations and diplomatic tensions between

China and the US, which may extend to and involve the UK and

the EU, alongside other potential areas of tension, which may

adversely affect the group by creating regulatory, reputational and

market risks; the efficacy of government, customer, and the

company's and the HSBC Group's actions in managing and

mitigating ESG risks, in particular climate risk, nature-related risks

and human rights risks, and in supporting the global transition to

net zero carbon emissions, each of which can impact the company

both directly and indirectly through its customers and which may

result in potential financial and non-financial impacts; illiquidity and

downward price pressure in national real estate markets; adverse

**HSBC Bank plc** Interim Report 2025 on Form 6-K<sub>2</sub>

changes in central banks' policies with respect to the provision of

liquidity support to financial markets; heightened market concerns

over sovereign creditworthiness in over-indebted countries;

adverse changes in the funding status of public or private defined

benefit pensions; societal shifts in customer financing and

investment needs, including consumer perception as to the

continuing availability of credit; exposure to counterparty risk,

including third parties using the company as a conduit for illegal

activities without the company's knowledge; and price

competition in the market segments that the company serves;

–changes in government policy and regulation, including trade and

tariff policies, as well as monetary, interest rate and other policies

of central banks and other regulatory authorities in the principal

markets in which the company operates and the consequences

thereof (including, without limitation, actions taken as a result of

changes in government following national elections and the trade

policies announced by the US and potential countermeasures that

may be adopted by countries, including in the markets where the

group operates); initiatives to change the size, scope of activities

and interconnectedness of financial institutions in connection with

the implementation of stricter regulation of financial institutions in

key markets worldwide; revised capital and liquidity benchmarks,

which could serve to deleverage bank balance sheets and lower

returns available from the current business model and portfolio

mix; changes to tax laws and tax rates applicable to the company,

including the imposition of levies or taxes designed to change

business mix and risk appetite; the practices, pricing or

responsibilities of financial institutions serving their consumer

markets; expropriation, nationalisation, confiscation of assets and

changes in legislation relating to foreign ownership; the UK's

relationship with the EU, particularly with respect to the potential

divergence of UK and EU law on the regulation of financial

services; changes in government approach and regulatory

treatment in relation to ESG disclosures and reporting

requirements, and the current lack of a single standardised

regulatory approach to ESG across all sectors and markets;

changes in UK macroeconomic and fiscal policy, which may result

in fluctuations in the value of the pound sterling; general changes

in government policy (including, without limitation, actions taken

as a result of changes in government following national elections

in the markets where the group operates) that may significantly

influence investor decisions; the costs, effects and outcomes of

regulatory reviews, actions or litigation, including any additional

compliance requirements; and the effects of competition in the

markets where the company operates, including increased

competition from non-bank financial services companies; and

–factors specific to the company and the HSBC Group, including

the company's success in adequately identifying the risks it faces,

such as the incidence of loan losses or delinquency, and managing

those risks (through account management, hedging and other

techniques); the company's ability to achieve its financial,

investment, capital targets and the HSBC Group's ESG ambitions,

targets and commitments, which may result in the company's

failure to achieve any of the expected outcomes of its strategic

priorities; evolving regulatory requirements and the development

of new technologies, including artificial intelligence, affecting how

the company manages model risk; model limitations or failure,

including, without limitation, the impact that high inflationary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;pressures and interest rates have had on the performance and

usage of financial models, which may require the company to hold

additional capital, incur losses and/or use compensating controls,

such as judgemental post-model adjustments, to address model

limitations; changes to the judgements, estimates and

assumptions the company bases its financial statements on;

changes in the company's ability to meet the requirements of

regulatory stress tests; a reduction in the credit ratings assigned

to the company or any of its subsidiaries, which could increase the

cost or decrease the availability of the company's funding and

affect its liquidity position and net interest margin; changes to the

reliability and security of the company's data management, data

privacy, information and technology infrastructure, including

threats from cyber-attacks, which may impact its ability to service

clients and may result in financial loss, business disruption and/or

loss of customer services and data; the accuracy and effective use

of data, including internal management information that may not

have been independently verified; changes in insurance customer

behaviour and insurance claim rates; the company's dependence

on loan payments and dividends from subsidiaries to meet its

obligations; changes in the HSBC Group's reporting framework

and accounting standards, which have had and may continue to

have a material impact on the way the company prepares its

financial statements; the company's ability to successfully execute

planned strategic acquisitions and disposals; the company's

success in adequately integrating acquired businesses into its

business; our ability to successfully execute and implement the

announced strategic reorganisation of the HSBC Group; changes

in the company's ability to manage third-party, fraud, financial

crime and reputational risks inherent in its operations; employee

misconduct, which may result in regulatory sanctions and/or

reputational or financial harm; changes in skill requirements, ways

of working and talent shortages, which may affect the company's

ability to recruit and retain senior management and an inclusive

and skilled workforce; and changes in the company's ability to

develop sustainable finance and ESG-related products consistent

with the evolving expectations of its regulators, and the

company's capacity to measure the environmental and social

impacts from its financing activity (including as a result of data

limitations and changes in methodologies), which may affect

HSBC Group's ability to achieve its ESG ambitions, targets and

commitments, and increase the risk of greenwashing. Effective

risk management depends on, among other things, the company's

ability through stress testing and other techniques to prepare for

events that cannot be captured by the statistical models it uses;

the company's success in addressing operational, legal and

regulatory, and litigation challenges; and other risks and

uncertainties that the company identifies in 'Risk – Risk overview',

'Risk – Managing risk' and 'Risk – Top and emerging risks' on

pages <u>[10](#i40008870ac9143fe91c707b036a42e2f_20531)</u> to <u>[12](#ibe1cd61b025c4ce6be172874eeefeb14_20559)</u> of this Form 6-K.

This Form 6-K contains a number of graphics, text boxes and

credentials which aim to give a high-level overview of certain

elements of our disclosures and to improve accessibility for readers.

These graphics, text boxes and credentials are designed to be read

within the context of the Form 6-K as a whole.

---

| | |
|:---|:---|
| **3** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Key financial metrics

Key financial metrics

---

| | | |
|:---|:---|:---|
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
| **For the period (£m)**  |  |  |
| Profit before tax | **1164** | 1136 |
| Net operating income before change in expected credit losses and other credit impairment charges<sup>1</sup> | **4135** | 3552 |
| Profit attributable to the parent company | **842** | 715 |
| **At period end (£m)** |  |  |
| Total equity attributable to the parent company | **27639** | 25333 |
| Total assets | **720637** | 714376 |
| Risk-weighted assets<sup>2</sup> | **112707** | 113191 |
| Loans and advances to customers (net of impairment allowances) | **78881** | 85721 |
| Customer accounts | **229804** | 240957 |
| **Capital ratios (%)**<sup>2</sup> |  |  |
| Common equity tier 1 | **19.4** | 18.0 |
| Tier 1 | **23.0** | 21.4 |
| Total capital | **36.0** | 34.7 |
| **Leverage ratio (%)**<sup>3</sup> | **5.2** | 5.1 |
| **Performance, efficiency and other ratios (%)** |  |  |
| Return on average ordinary shareholders' equity (annualised)<sup>4</sup> | **6.6** | 5.7 |
| Return on average tangible equity (annualised) | **6.6** | 5.7 |
| Cost efficiency ratio<sup>5</sup> | **70.7** | 70.0 |
| Ratio of customer advances to customer accounts | **34.3** | 35.6 |

---

1Net operating income before change in expected credit losses and other credit impairment charges is also referred to as revenue.

2References to EU regulations and directives (including technical standards) should, as applicable, be read as references to the UK's version of such regulation or

directive, as onshored into UK law under the European Union (Withdrawal) Act 2018, and as may be subsequently amended under UK law. Regulatory capital

ratios and requirements are based on the transitional arrangements of the Capital Requirements Regulation in force at the time. Effective 1 January 2025, the

IFRS 9 transitional arrangements came to an end, followed by the end of the CRR II grandfathering provisions on 28 June 2025.

3Leverage metrics exclude central bank claims in accordance with the Prudential Regulation Authority's ('PRA') UK leverage framework.

4The return on average ordinary shareholders' equity is defined as profit attributable to the parent company divided by the average total shareholders' equity.

5Reported cost efficiency ratio is defined as total operating expenses divided by net operating income before change in expected credit losses and other credit

impairment charges.

**HSBC Bank plc** Interim Report 2025 on Form 6-K<sub>4</sub>

Purpose and strategy

HSBC in Europe

Europe is an important part of the global economy, accounting for

roughly 20% of global trade and one-quarter of global GDP (UNCTAD,

IMF 2024). In addition, Europe is the world's top exporter of services

and second largest exporter of manufactured goods (UNCTAD, IMF

2023). HSBC Bank plc helps to facilitate trade within Europe and

between Europe and other jurisdictions where the HSBC Group has a

presence.

With assets of£721bn at 30 June 2025, HSBC Bank plc is one of

Europe's largest banking and financial services organisations. We

employ around 10,331 people across our locations. HSBC Bank plc is

responsible for HSBC's European business, apart from UK retail and

some UK commercial banking activity which, post ring-fencing, is

managed by HSBC UK Bank plc.

HSBC Bank plc operates as one integrated business with two main

hubs in London and Paris, with presence in 18 markets<sup>1</sup>. The London

hub consists of the UK non-ring-fenced bank, which provides overall

governance and management for the Europe region as a whole and is

a global centre of excellence for Corporate and Institutional Banking

('CIB') for the HSBC Group.

HSBC Continental Europe ('HBCE') is the dedicated Intermediate

Parent Undertaking ('IPU') for the region and comprises our Paris hub,

its EU branches (Belgium, Czech Republic, Germany, Ireland, Italy,

Luxembourg, Netherlands, Poland, Spain and Sweden) and

subsidiaries in Malta and Luxembourg ('PBLU').

HSBC Bank plc also operates a small universal bank in Bermuda, as

well as branches in Paris, Israel, Switzerland, and South Africa. Other

entities comprise our International Wealth and Premier Banking led

operations in the Channel Islands and Isle of Man ('CIIOM'), a

Western hub for International Expatriate clients, as well as HSBC

Private Bank (Suisse) SA ('PBRS').

1Full list of markets where HSBC Bank plc has a presence: Belgium,

Bermuda, Channel Islands and Isle of Man, Czech Republic, France,

Germany, Ireland, Italy, Israel, Luxembourg, Malta, Netherlands,Poland,

South Africa, Spain, Sweden, Switzerland and the UK.

HSBC Bank plc's strategy and

progress

HSBC Bank plc is a critical entity for the Group and a major contributor

to global revenues and capabilities. It connects European clients to

opportunities across our network, and global clients to opportunities

in Europe.

Our strategic priorities remain consistent. We want to create a simple

and sustainably profitable franchise that operates under a robust

control environment. The comprehensive transformation we

announced in 2020 is essentially complete, and in line with HSBC

Group's recently announced reorganisation.

The exit of our operations in South Africa, private banking business in

Germany and French life Insurance business are on-going.

During 2Q25, we announced the planned sale of our custody

business in Germany.

In July 2025, we agreed the sale of our UK life insurance business,

our fund administration business in Germany, and our retained

portfolio of home and other loans associated with the disposal of our

retail operations in France.

Our business in Malta remains under a strategic review and no

decisions have been made.

For further details on the planned disposals please see Note 11:

'Assets held for sale and liabilities of disposal groups held for sale', on

page <u>[48](#iacd8298e657548c194fe64b7dc4c5258_0-1-1-1-7996308)</u>.

Business segments

On 22 October 2024, HSBC Holdings plc announced that the HSBC

Group would simplify its organisational structure to help accelerate

delivery against its strategic priorities. Effective 1 January 2025, the

HSBC Group started to operate through four new businesses –

Hong Kong, UK, Corporate and Institutional Banking ('CIB'),

International Wealth and Premier Banking ('IWPB'). HBEU realigned

its organisational structure effective 1 January 2025 accordingly. All

segmental comparative data have been re-presented on this basis.

HSBC Bank plc includes CIB and IWPB businesses in Europe. The

region acts as a global connector, linking European clients to

opportunities across our network, and global clients to opportunities

in Europe. It deploys significant capital to support European clients,

that in turn helps drive profitable business booked in other parts of

our network.

Corporate and Institutional Banking

Profit before tax £1,023m(1H24: £1,129m)

Our CIB business is a market leader in cross-border transaction

banking and capital markets. It integrates our Commercial Banking

business with our Global Banking and Markets business.

CIB's ambition is to be the world's leading international Corporate &

Institutional Bank, focused on Transaction Banking, Financing and

Distribution.

International Wealth and Premier

Banking

Profit before tax £199m(1H24: £310m)

Globally, IWPB business comprises Premier banking outside of Hong

Kong and the UK, our Private Bank, Asset Management and Insurance

businesses.

In Europe, IWPB serves customers through our distinct propositions

for Private Banking, Premier, Personal Banking & International. These

customers' needs are catered for through our integrated

manufacturing capabilities, consisting of Wealth & Premier Solutions,

Asset Management and Insurance Manufacturing.

---

| | |
|:---|:---|
| **5** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Economic background and outlook

Economic background and outlook

UK

Modest growth, elevated inflation

UK economic activity picked up at the start of 2025, with GDP

growing by 0.7% in the first quarter (Office for National Statistics,

'ONS'). But a material portion of that growth likely reflected

'frontloading' in US demand prior to tariff increases, and also a flurry

of housing transactions before an increase in stamp duty. These

effects partially unwound in April and May, where monthly GDP fell

slightly (ONS). Looking through that volatility, the broader trend is of

fairly sluggish growth.

Growth prospects will hinge, in part, on consumer spending.

Household real income grew strongly last year, but a portion of those

income gains have been saved, rather than spent. More stable

inflation and declining interest rates could provide a spending

impetus. Growth will also depend on changes in US trade policies.

The UK might have avoided the risk of sharp increases in US tariffs,

given the US-UK trade deal which embeds a 'baseline' US tariff of

10%. Another risk to the UK could relate to investor concerns about

fiscal sustainability, which is keeping government borrowing costs

high.

Elevated inflation also remains an issue in the UK. Consumer price

inflation rate stood at 3.6% in June – well above the Bank of

England's ('BoE') 2% target. That stems, in part, from sharp recent

rises in utility bills and a range of indexed prices. It also reflects

ongoing increases in labour costs. Average wage growth stood at an

annual rate of 5.0% in the three months to May. That said, demand

for labour is easing, with vacancy levels in decline and jobs growth

slowing. Over time, that should bear down on pay growth, helping

inflation eventually return towards the 2% mark.

Given prospects for an eventual 'normalisation' of inflation, the BoE is

gradually reducing interest rates. Having raised Bank Rate to 5.25%

in August 2023, the Monetary Policy Committee has reduced rates

four times over the past year, with Bank Rate now at 4.25%.

Financial markets expect further reductions to come, with market

pricing pointing to Bank Rate settling at around the 3.5% mark by

mid-2026.

Eurozone

'Normality' amid global shocks

Despite significant global geopolitical uncertainty, the eurozone

economy has shown a surprising degree of 'normality', with activity

growing (albeit slowly), inflation at close to target and the European

Central Bank ('ECB') having reduced interest rates to their 'neutral'

levels.

Regarding activity, Eurozone GDP grew by 0.6% in the first quarter of

2025 (Eurostat). Admittedly, most of that growth can be accounted

for by exports from Ireland to the US – predominantly

pharmaceuticals – in a sign of tariff 'frontloading'. That effect appears

to have unwound in the second quarter. But looking through the

volatility, the underlying picture is of slow expansion, reflecting

ongoing strength in the labour market, loosening credit conditions

and early signs that household savings rates are starting to fall.

Looking ahead, Europe's economy is likely to experience a tailwind

from extra public spending on defence and infrastructure, particularly

in Germany.

In a welcome set of developments, inflation and interest rates appear

to have largely 'normalised'. The Eurozone annual consumer price

inflation rate stood at 2.0% in June, exactly in line with the ECB's

target. And the ECB's key deposit rate has been reduced from its

4.00% peak to 2.00%, within the 1.75-2.25% range which ECB

President Christine Lagarde has described as 'neutral'.

There are, however, risks to the outlook. One relates to US trade

policy. While the US and the EU have struck a deal whereby most US

goods imports from the EU will be subject to a 15% tariff, that is

materially higher than tariffs which applied before April 2025. Another

risk relates to the appreciation in the euro seen this year (largely

reflecting falls in the US dollar), which could lead to a period of

eurozone inflation running below 2%. That, in turn, could lead the

ECB to consider the prospect of reducing interest rates further.

**HSBC Bank plc** Interim Report 2025 on Form 6-K<sub>6</sub>

Financial summary

Use of alternative performance measures

Our reported results are prepared in accordance with International

Financial Reporting Standards ('IFRS Accounting Standards') as

detailed in the interim condensed consolidated financial statements

starting on page <u>[29](#i6c62bb30afe542b9aededc033a9e9dee_133)</u>. In measuring our performance, we use financial

measures which eliminate factors that distort period-on-period

comparisons. These are considered alternative performance

measures.

All alternative performance measures are described and reconciled to

the closest reported financial measure when used. For further details

refer to 'Return on average ordinary shareholders' equity and return

on average tangible equity' note on page <u>[9](#i00a6f9c285754bb98aadc05f47349419_27364)</u>.

Business segmental results are presented in accordance with IFRS 8

'Operating Segments', as detailed in 'Basis of preparation' in Note 3:

'Segmental analysis' on page <u>[37](#id78f5ca0688f47dd925371f141e4d010_52213)</u>.

---

| | | |
|:---|:---|:---|
| Summary consolidated income statement | Summary consolidated income statement | Summary consolidated income statement |
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **£m** | £m |
| Net interest income | **594** | 658 |
| Net fee income | **661** | 654 |
| Net income from financial instruments measured at fair value | **3091** | 2764 |
| Gains less losses from financial investments | **28** | 5 |
| Losses recognised on Assets held for sale | **(42)** | (62) |
| Insurance finance expense | **(362)** | (535) |
| Insurance service result | **70** | 102 |
| Other operating income/(expense)  | **95** | (34) |
| **Net operating income before change in expected credit losses and other credit impairment (charges)/release**<sup>1</sup> | **4135** | 3552 |
| Change in expected credit losses and other credit impairment charges | **(75)** | 53 |
| **Net operating income** | **4060** | 3605 |
| Total operating expenses | **(2925)** | (2485) |
| **Operating profit** | **1135** | 1120 |
| Share of profit in associates and joint ventures | **29** | 16 |
| **Profit before tax** | **1164** | 1136 |
| Tax expense | **(312)** | (405) |
| **Profit for the period** | **852** | 731 |
| Profit attributable to the parent company | **842** | 715 |
| Profit attributable to non-controlling interests | **10** | 16 |

---

1Net operating income before change in expected credit losses and other credit impairment charges is also referred to as revenue.

Reported performance

The following commentary reflects the newly formed business

segments of Corporate Institutional Bank ("CIB"), International

Wealth and Premier Banking ("IWPB") and Corporate Centre,

following the implementation of our new organisational structure.

Profit before tax of £1,164m was £28m higher than the first half of

2024. This increase was driven by increased revenues of £583m,

offset by higher operating expenses of £440m and increased

expected credit losses of £128m.

Reported revenue increased by £583m or 16%, in CIBreflecting

strong performance (up £289m) and in Corporate Centre (up £309m).

CIB revenue was higher, mainly driven by increased market volatility

in Global Foreign Exchange and in Debt and Equity Markets.

Corporate Centre revenue was higher, driven by improved revenues

on the retained retail loan portfolio, and because of losses on

transactions incurred in the first half of 2024 associated with the sale

of our subsidiary in Russia and with the classification of our subsidiary

in Armenia as held for sale.

Expected credit losses and other credit impairment charges ('ECL') of

£75m were higher than in the prior year, where we benefited from a

number of ECL releases.

Operating expenses of £2,925m increased by £440m driven by

restructuring and other related costs, value in use impairments and

investments to simplify our technology infrastructure notably across

wealth, platforms and cloud.

**Net interest income ('NII')** decreased by £64m or 10% compared

with the first half of 2024. This reduction was in Corporate Centre

(£58m down) due to higher net interest expense (up £111m)

associated with the funding of our trading book reflecting balance

sheet growth, offset by higher NII (up £48m) on the portfolio of

retained retail loans in France. CIB (up £19m) reflected higher NII from

Foreign Exchange and Debt and Equity Markets driven by average

commodities balances, offset by lower NII in GPS due to the impact

of margin compression. IWPB (down £24m) was mainly impacted by

lower rates.

**Net fee income** increased by £7m or 1%, primarily due to

improvements in IWPB (up £17m) mainly driven by the acquisition of

PBRS in the first half of 2024, offset by net reductions in CIB (down

£16m) driven by reductions in Global Foreign Exchange and Debt and

Equity Markets.

**Net income from financial instruments measured at fair value** 

increased by £327m, in CIB (up £269m) primarily driven from market

volatility in Global Foreign Exchange and Debt and Equity Markets,

increases for which the associated funding costs are reported in net

interest income, and a further increase in Corporate Centre driven by

mark-to-market gains on interest rate hedging of the portfolio of the

retained retail loans in France.

IWPB decreased by £134m primarily in insurance manufacturing,

driven by lower returns on financial assets supporting insurance

contracts where the policyholder is subject to part or all of the

investment risks. The adverse movement resulted in a corresponding

movement in liabilities to policyholders, reflecting the extent to which

policyholders participate in the investment performance of the

associated assets. The offsetting movements are recorded in

'Insurance finance expense'.

---

| | |
|:---|:---|
| **7** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Financial summary

**(Losses)/gains recognised on assets held for sale** decreased by

£20m. The 2025 held for sale loss was mainly in IWPB (£42m) relating

to the planned sale of the France Life Insurance business. In the first

half of 2024 the held for sale losses of £62m included a loss of £56m

associated with the classification of our subsidiary in Armenia as held

for sale.

**Insurance finance expenses** decreased by £173m primarily in

insurance manufacturing in IWPB, reflecting the impact of lower

investment returns on underlying assets and therefore on the value of

liabilities to policyholders. As such, the offsetting movements are

recorded in 'Net income from financial instruments measured at fair

value'.

**Insurance service result** decreased by £32m or 31% due to adverse

market movements.

**Other operating income** increased by £129m mainly due to foreign

currency translation reserve losses recognised on completion of the

sale of our subsidiary in Russia in the first half of 2024 of £80m, an

increase in the current year in Corporate Centre (up £21m) which

included a litigation refund, in addition to higher intercompany

recharge recoveries from other entities within the HSBC Group.

**ECL** were a net charge of £75m in the first half of 2025 compared

with a net release of £53m in the first half of 2024 driven by a single

named client in CIB.

**Total operating expenses** increased by £440m or 18%, driven by

restructuring and other related costs (£224m), value in use

impairments across property, plant and equipment and intangible

assets (up £98m), increases reflecting investments in our technology

infrastructure notably across wealth, platforms and cloud (up £52m)

and other simplification initiatives (£50m).

**Share of profit in associates and joint ventures** was £29m

compared with a profit of £16m in the first half of 2024, an increase of

£13m, mainly due to Business Growth Fund profit share increase.

**Tax expense** was £312m, giving an effective tax rate ('ETR') of

26.8% compared with an ETR of 35.7% for the same period in 2024.

The ETR of 26.8% for the first half of 2025 was increased by 7.8%

due to adjustments in respect of prior periods.

The effective tax rate for the first half of 2024 was increased by

charges in respect of uncertain tax positions and the non-deductible

loss on disposal of our business in Russia.

Analysis of reported results by

business segments

Corporate and Institutional Banking

('CIB')

Profit before tax was £1,023m, a decrease of £106m compared with

the first half of 2024. This was mainly driven by higher operating

expenses and higher ECL offset by higher revenues.

**Revenue** increased by £289m or 9%. This was primarily driven by

increased market volatility in Global Foreign Exchange, Debt and

Equity Markets (up £322m), increases in Investment Banking (£46m

up), offset by GPS (down £121m) driven by the impact of margin

compression, partly offset by higher average balances.

**ECL** were a net charge of £61m compared with a net release of £52m

in the first half of 2024. The net charge in the first half of 2025

primarily reflects the level of economic uncertainty. The net release in

the first half of 2024 was mainly driven by a Stage 3 release for a

single named client.

**Operating expenses** increased by £282m or 14%, driven by

restructuring and other related costs (£150m), value in use

impairments (£62m), investments in technology (£32m) and other

simplification initiatives (£50m).

International Wealth and Premier

Banking ('IWPB')

Profit before tax was £199m, a decrease of £111m compared with

the first half of 2024. This was driven by higher operating expenses

(up £78m), higher ECLs (up £18m) and lower revenues (down £15m).

**Revenue** decreased by £15m mainly due to increased held for sale

losses (£33m) driven by the planned sale of France Insurance in the

current year partly offset by the losses on the reclassification of HSBC

Epargne Entreprise in the first half of 2024 to held for sale, Private

Bank revenues (down £7m) mainly in Germany and reductions in

Retail (down £3m) mainly from reduced interest rates. This was offset

by increased revenues from legal entity restructuring (up £31m) due

to the PBRS acquisition in February 2024 offset by the sale of our

Armenia entity in the second half of 2024.

**ECL** were a net charge of £12m compared with a net release of £6m

in the first half of 2024 due to Stage 3 charges.

**Operating expenses** increased by £78m or 19% driven by

restructuring and other related costs (£11m), value in use

impairments (up £35m), and by the impact of entity restructuring in

the first half of 2024 (£17m).

Corporate Centre

Loss before taxof £58m compared with a loss before tax £303m in

the first half of 2024, an improvement of £245m. This was mainly

driven by higher revenue.

**Revenue** increased by £309m, as the first half of 2025 included

positive revenue associated with the portfolio of retail retained loans

(£88m), mostly driven by mark-to-market gains on interest rate

hedging of the portfolio of the retained retail loans in France, which

was transferred from IWPB to Corporate Centre in 2024. Revenue

increased further by £69m from lower cost of funds in NII as interest

rates declined and from a litigation refund. Revenue in the first half of

2024 included the recognition of a loss of £56m from the

classification of our subsidiary in Armenia as held for sale, and foreign

currency translation reserve losses of £80m recognised on

completion of the sale of our subsidiary in Russia in May 2024.

**Operating expenses** of £164m were £80m higher than in the first

half of 2024. The increase mainly reflects restructuring and other

related costs.

**Share of profit in associates and joint ventures** was a profit of

£29m, compared with a profit of £16m in the first half of 2024. This

was mainly due to Business Growth Fund profit share increase.

**HSBC Bank plc** Interim Report 2025 on Form 6-K<sub>8</sub>

Review of business position

---

| | | |
|:---|:---|:---|
| Summary consolidated balance sheet | Summary consolidated balance sheet | Summary consolidated balance sheet |
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **£m** | £m |
| **Total assets** | **720637** | 727330 |
| – cash and balances at central banks | **96155** | 119184 |
| – trading assets | **114445** | 116042 |
| – financial assets designated and otherwise mandatorily measured at fair value through profit or loss | **9097** | 9417 |
| – derivatives | **176838** | 198172 |
| – loans and advances to banks | **15803** | 14521 |
| – loans and advances to customers | **78881** | 82666 |
| – reverse repurchase agreements – non-trading | **68408** | 53612 |
| – financial investments | **56050** | 52216 |
| – assets held for sale | **28122** | 21606 |
| – other assets | **76838** | 59894 |
| **Total liabilities** | **692830** | 700277 |
| – deposits by banks | **34439** | 26515 |
| – customer accounts | **229804** | 242303 |
| – repurchase agreements – non-trading | **36832** | 40384 |
| – trading liabilities | **39542** | 42633 |
| – financial liabilities designated at fair value | **39964** | 37443 |
| – derivatives | **176367** | 197082 |
| – debt securities in issue | **13882** | 19461 |
| – insurance contract liabilities | **3707** | 3424 |
| – liabilities of disposal groups held for sale | **33097** | 23110 |
| – other liabilities | **85196** | 67922 |
| **Total equity** | **27807** | 27053 |
| Total shareholders' equity | **27639** | 26895 |
| Non-controlling interests | **168** | 158 |

---

Total reported assets were 0.9% lower than at 31 Dec 2024. The

group maintained a strong and liquid balance sheet with the ratio of

customer advances to customer accounts remaining low at 34.3% at

30 June 2025.

Assets

Cash and balances at central banks decreased by £23.0bn or 19%

primarily due to maturities of commercial paper and certificate of

deposits and managing the liquidity of the bank.

Trading assets decreased by £1.6bn, primarily due to a reduction in

long equity positions and treasury bills balances, with an offset from a

growth in long positions on trading bonds.

Derivative assets decreased by £21.3bn or 11% reflecting an adverse

mark to market movements on foreign exchange contracts, despite

an increase in client activity. The decrease in derivative assets was

broadly consistent with the movement in derivative liabilities, as the

underlying risk is broadly matched.

Loans and advances to customers decreased by £3.8bn or 5% largely

due to the retail retained loans which were transferred from IWPB to

Corporate Centre in 2024. These were classified as financial

instruments at fair value through other comprehensive income in

Q125 and subsequently to assets held for sale in Q225.

Non-trading reverse repos increased by £14.8bn or 28% reflecting

lower volume of deals meeting netting criteria.

Assets held for sale increased by £6.5bn, and included the

reclassification of our retained portfolio of French home and other

loans and our custody business in Germany.

Other assets increased by £16.9bn, due to an increase in gold volume

and price (£6.1bn) and settlement accounts due to increase in the

volume of trades executed during the period.

Liabilities

Customer accounts decreased by £12.5bn or 5%, primarily due to the

reclassification to held for sale of our custody business in Germany.

Trading liabilities decreased by £3.1bn mainly due to a drop in short

positions, in line with a drop in Prime assets deployment during the

same period.

Debt securities in issue decreased by £5.6bn or 29% attributable to

maturity of commercial papers, medium term notes and certificates

of deposit.

Non-trading repos decreased by £3.6bn or 9% due to to less funding

required during this period as more liquidity was raised via money

market deposits and structure notes.

Derivative liabilities decreased by £20.7bn. This is in line with

derivative assets as the underlying risk is broadly matched.

Other Liabilities increased by £17.3bn as settlement balances

increased following the seasonal low trading activity in December and

it is consistent with the growth in assets.

Equity

Total shareholders' equity increased by £0.7bn or 3% from 2024,

mainly due to increase in Retained Earnings.

---

| | |
|:---|:---|
| **9** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Financial summary

The following table shows the share capital position of the company and its consolidated capitalisation and indebtedness:

---

| | | |
|:---|:---|:---|
| Capitalisation and indebtedness | Capitalisation and indebtedness | Capitalisation and indebtedness |
|  | At | At |
|  | **30 Jun** | 31 Dec |
|  | **2025** | 2024 |
|  | **£m** | £m |
| **Share capital of HSBC Bank plc** |  |  |
| Ordinary shares (of nominal value £1 each) | **797** | 797 |
| Preference shares ($0.01 non-cumulative third dollar preference shares) | **0.172** | 0.172 |
| **Equity** |  |  |
| Called up share capital | **797** | 797 |
| Share premium account | **3582** | 3582 |
| Other equity instruments<sup>1</sup> | **4108** | 3921 |
| Other reserves | **(6679)** | (6445) |
| Retained earnings | **25831** | 25040 |
| **Total shareholders' equity**  | **27639** | 26895 |
| Non-controlling interests | **168** | 158 |
| **Total equity** | **27807** | 27053 |
| **Group indebtedness**<sup>2</sup> |  |  |
| Debt securities in issue  | **13882** | 19461 |
| Trading liabilities – Debt securities in issue  | **39** | 59 |
| Debt securities in issue designated at fair value  | **32949** | 30432 |
| Subordinated liabilities<sup>3</sup> | **17063** | 17714 |
| **Total indebtedness**  | **63933** | 67666 |
| **Total capitalisation and indebtedness** | **91740** | 94719 |

---

1Comprises 10 undated subordinated resettable additional tier 1 instruments held by HSBC Holdings plc.

2As of 30 June 2025, the group had other liabilities of £628,897m (2024: £632,611m) and contingent liabilities and contractual commitments of £174,796m

(2024: £150,364m) (including guarantees of £23,180m (2024: £22,340m). Contractual commitments includes £145,623m of commitments (2024: ££121,764m),

to which the impairment requirements in IFRS 9 are applied where the group has become party to an irrevocable commitment.

3Includes subordinated liabilities designated at fair value of £766m (2024: £806m).

Reconciliation of alternative performance measures

Return on average ordinary shareholders' equity and return on average

tangible equity

Return on average ordinary shareholders' equity ('RoE') is computed

by taking profit attributable to the ordinary shareholders of the parent

company ('reported results'), divided by average ordinary

shareholders' equity ('reported equity') for the period. The adjustment

to reported results and reported equity excludes amounts attributable

to non-controlling interests and holders of preference shares and

other equity instruments.

Return on average tangible equity ('RoTE') is computed by adjusting

reported results for impairment of goodwill and other intangible

assets (net of tax), divided by average reported equity adjusted for

goodwill and intangibles for the period.

We provide RoTE ratio in addition to RoE as a way of assessing our

performance, which is closely aligned to our capital position.

---

| | | |
|:---|:---|:---|
| Return on average ordinary shareholders' equity and return on average tangible equity |  |  |
|  | Half-year ended | Half-year ended |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **£m** | £m |
| **Profit** |  |  |
| **Profit attributable to the ordinary shareholders of the parent company**<sup>1</sup> | **756** | 595 |
| **Profit attributable to the ordinary shareholders, excluding other intangible assets impairment** | **756** | 595 |
| **Equity** |  |  |
| Average total shareholders' equity | **27056** | 24944 |
| Effect of average preference shares and other equity instruments | **(3983)** | (3930) |
| **Average ordinary shareholders' equity** | **23073** | 21014 |
| Other adjustments (net of tax) | **(266)** | (274) |
| **Average tangible equity**  | **22807** | 20740 |
|  | **%** | % |
| **Ratio** |  |  |
| Return on average ordinary shareholders' equity (annualised) | **6.6** | 5.7 |
| Return on average tangible equity (annualised) | **6.6** | 5.7 |

---

1Profit attributable to the ordinary shareholders of the parent company excludes coupons payable to preference shareholders on perpetual subordinated

contingent convertible securities and other foreign exchange difference.

**HSBC Bank plc** Interim Report 2025 on Form 6-K<sub>10</sub>

Risk

Risk overview

The group continuously identifies, assesses, manages and monitors

risks. This process, which is informed by its risk factors and the

results of its stress testing programme, gives rise to the classification

of certain financial and non-financial risks. Changes in the assessment

of these risks may result in adjustments to the group's business

strategy and, potentially, its risk appetite.

Our banking risks include credit risk, treasury risk, market risk,

climate risk, resilience risk (including cybersecurity risk), regulatory

compliance risk, financial crime and fraud risk and model risk. We

also incur insurance risk.

In addition to these banking risks, we have identified top and

emerging risks with the potential to have a material impact on our

financial results, our reputation and the sustainability of our long-term

business model.

The exposure to our risks and risk management of these are

explained in more detail on pages 21 to 93 of our 2024 Annual Report

and Accounts.

---

| | | |
|:---|:---|:---|
| **Risk** |  | **Description** |
| **Externally driven** | **Externally driven** | **Externally driven** |
| Geopolitical and <br>macroeconomic risk<br>| 🞁 | Our operations and portfolios are subject to risks arising from political instability, civil unrest and military conflict, which may lead <br>to disruption of our operations, physical risk to our staff, and/or physical damage to our assets. We are also subject to <br>macroeconomic risks, which may drive changes to our income growth and asset quality. Heightened geopolitical and <br>macroeconomic risk globally, including uncertainty in international trade policy, is subject to close monitoring and review. <br>|
| Credit risk | 🞂 | We remain focused on assessing and managing the key risks impacting the portfolio. Rapidly evolving global trade policies have <br>generated a significant amount of market uncertainty, alongside the ongoing heightened geopolitical challenges driven by the <br>conflict in the Middle East and the Russia-Ukraine war. Careful oversight through prudent origination and thematic reviews in <br>conjunction with our early warning indicators assist in the identification of segments that we believe may be at risk. We regularly <br>undertake detailed reviews of our portfolios and proactively manage credit facilities to customers and sectors likely to come under <br>stress. Particular emphasis is maintained on higher risk sectors such as Automotives, Chemicals, Commercial Real Estate, <br>Construction, Leveraged Finance and Retail, all of which remain subject to dedicated reviews. In addition, the portfolio is <br>monitored through stress testing with the refinance profile of the book also regularly reviewed.<br>|
| Cyber threat and <br>unauthorised access <br>to systems<br>| 🞁 | There is an increased risk of service disruption or loss of data resulting from technology failures or malicious activities from <br>internal or external threats. We seek to continue to monitor changes to the threat landscape, including those arising from ongoing <br>geopolitical and macroeconomic events alongside third-party breaches and the impact this may have on risk management. We <br>operate a continuous improvement programme to help protect our technology operations and to counter a fast-evolving cyber <br>threat environment. <br>|
| Evolving regulatory <br>environment risk<br>| 🞂 | The regulatory and compliance risk environment remains complex and is set against continued geopolitical risk and regulatory <br>focus on ensuring good customer outcomes, orderly and transparent operation of financial markets, operational resilience, cyber <br>resilience, financial resilience, model risk, ESG, financial crime, and risk management practices. The group is progressing the <br>implementation of Basel 3.1 standards to various timescales, and the governmental and regulatory focus on improving growth is <br>driving legislative and regulatory change.<br>|
| Financial crime and <br>fraud risk<br>| 🞁 | We are exposed to financial crime risk from our customers, staff and third-parties engaging in criminal activity. The financial crime <br>risk environment is heightened due to increasingly complex geopolitical challenges, the macroeconomic outlook, the complex and <br>dynamic nature of sanctions and export controls compliance, evolving financial crime regulations, rapid technological <br>developments, an increasing number of national data privacy requirements and the increasing sophistication of fraud. As a result, <br>we will continue to face the possibility of regulatory enforcement and reputational risk.<br>|
| Environmental, <br>social and <br>governance risk<br>| 🞁 | We are subject to ESG risks, including in relation to climate change, nature and human rights. These risks have increased due to <br>the increasing frequency of severe weather events, diverging national agendas and complex regulatory expectations in Europe. <br>Financial institutions' actions and investment decisions in respect of ESG matters continue to be subject to heightened scrutiny by <br>stakeholders. Failure to meet these evolving expectations may have financial and non-financial impacts, including reputational, <br>legal and regulatory compliance risks.<br>|
| Digitalisation and <br>technological <br>advances<br>| 🞁 | Developments in technology and changes in regulations continue to enable new entrants to the banking industry as well as new <br>products and services offered by competitors. This challenges us to continue to innovate with new digital capabilities and evolve <br>our products to attract, retain and best serve our customers. Along with opportunities, new technology, including generative AI, <br>can introduce risks and disruption. We seek to ensure technology developments are understood and managed with appropriate <br>controls and oversight. <br>|
| **Internally driven** | **Internally driven** | **Internally driven** |
| People risk | 🞁 | Our businesses, functions and geographies are exposed to risks associated with employee retention and talent availability, <br>changing skills requirements of our workforce, and compliance with employment laws and regulations. Failure to manage these <br>risks may impact the delivery of our strategic objectives or lead to regulatory sanctions or legal claims, and the risks are <br>heightened during the current period of fundamental organisational change. The risk will continue to be reviewed and assessed to <br>identify challenges and implement relevant actions.<br>|
| IT systems <br>infrastructure and <br>operational <br>resilience<br>| 🞂 | We continue to monitor and improve our IT systems and network resilience, both on our premises and on the Cloud to minimise <br>service disruption and improve customer experience. We operate a continuous improvement programme and continue to seek to <br>reduce the complexity of our technology estate to help protect our technology operations.<br>|
| Execution risk | 🞁 | Delivering change effectively is critical to achieving our strategy and enables us to meet rapidly-evolving customer and stakeholder <br>needs. We seek to prioritise and deliver complex change in line with established risk management processes, to achieve <br>sustainable outcomes, to meet industry and regulatory expectations and to fulfil our obligations to customers and clients. The <br>impact of the ongoing reorganisation of the Group on the level of change execution risk in the near to medium term is being <br>monitored.<br>|

---

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| | |
|:---|:---|
| **11** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Risk

---

| | | |
|:---|:---|:---|
| **Risk** |  | **Description** |
| **Internally driven (continued)** | **Internally driven (continued)** | **Internally driven (continued)** |
| Model risk | 🞁 | Model risk arises whenever business decision making includes reliance on models. We use models in both financial and non-<br>financial contexts, as well as in a range of business applications. Evolving regulatory requirements and enhanced expectations <br>continue to drive changes to the way model risk is managed across the banking industry, with a particular focus on capital and <br>credit loss models. We continue strengthening the dialogue with regulators within the region to seek to ensure our model risk <br>management meets their expectations. New technologies, including generative AI, are driving a need for enhanced model risk <br>controls. <br>|
| Data risk | 🞂 | We use data to serve our customers and run our operations, often in real-time within digital experiences and processes. If our data <br>is not accurate and timely, our ability to serve customers, operate with resilience or meet regulatory requirements could be <br>impacted. We seek to ensure that non-public data is kept confidential, and that we comply with the regulations that govern data <br>privacy and cross-border movement of data. <br>|
| Third-party risk | 🞂 | We procure goods and services from a range of third parties. In line with the macroeconomic and geopolitical climate, the risk of <br>service disruption in our supply chain remains high. We continue to strengthen our controls, oversight and risk management <br>policies and processes to select and manage third parties, including our third parties' own supply chains, particularly for key <br>activities that could affect our operational resilience. <br>|

---

---

| | |
|:---|:---|
| 🞁 | Risk has heightened during the first half of 2025 |
| 🞂 | Risk remains at the same level during the first half of 2025 |

---

Managing risk

Economic, financial and geopolitical developments have in the past

affected, and may in the future materially affect, the group's

customers, operations and financial risk profile. We maintain a

proactive approach to managing our exposure to these risks,

supported by continuous monitoring and review.

Economic activity in the EU and the UK increased in the first half of

2025 as the global economy continued to grow, but developments

were distorted by the acceleration of consumption and investment

spending in anticipation of tariffs being imposed. Over the remainder

of 2025, tariffs may become an increasing headwind to global

growth, and economic forecasts and economic expectations have

been lowered accordingly.

Risks to the global economy remain elevated due to the uncertainty

over trade policies. High uncertainty may impact financial markets

and further erode confidence, while higher tariffs could disrupt supply

chains and reduce global trade. Such developments may adversely

affect the group and our customers.

Tariffs, supply chain disruptions and reduced trade may also

negatively impact fee income and demand for financing, although the

reconfiguration of supply chains may also present new opportunities

for investment and growth.

We remain subject to interest rate risk, which can affect net interest

income, the fair value of our assets and liabilities, and overall financial

performance.

Major central banks have adjusted their policy approach in light of

recent economic uncertainty. The ECB has continued to cut interest

rates, but has cited concern over the significant uncertainty in the

global economy including the impact of tariffs, that might influence

the pace and scale of further reductions. The Bank of England cut

interest rates by a cumulative 50bps to 4.25%, amid concern that the

weaker global backdrop may affect UK growth and employment,

despite continued domestic inflation risk.

Policy interest rates are expected to remain higher than prior to the

Covid-19 pandemic. Higher rates may reduce loan demand across key

consumer and business segments, which could lead to a

deterioration in credit quality and weigh on real estate and other asset

prices.

In a number of developed markets, government debt levels are rising

amid spending pressure from rising social welfare costs and

increased expenditure on defence and climate transition. Our risk

profile may be influenced by fiscal policies, public deficits and levels

of indebtedness. For example, recent changes to US long-term

interest rates and US dollar volatility could adversely impact the fiscal

capacity and debt sustainability of highly-indebted sovereigns. In

addition, a sharp rise in funding costs in our key markets could raise

the credit and refinancing risks for our customers and counterparties.

The geopolitical environment has continued to increase in complexity

and tensions could impact the group's operations and its risk profile.

The ongoing conflict in the Middle East and the Russia-Ukraine war

remain key sources of uncertainty, which may impact the group and

our customers, including through increased market volatility and

supply chain disruptions. During the second quarter of 2025, the war

between Israel and Iran illustrated the threat of energy supply

disruption to the global economy.

Existing and additional sanctions, trade restrictions, counter-sanctions

and other retaliatory measures relating to geopolitical tensions may

adversely affect the group, its customers and the markets in which

the group operates.

Our business could also be adversely affected by economic and

political developments in regions of the world outside of Europe. This

reflects our extensive business links, through members of the HSBC

Group and other entities, in Asia and elsewhere. Tensions between

China and the US, which may extend to and involve other countries,

may adversely affect the group.

In the first half of 2025, management adjustments to ECL were

applied to reflect sector or portfolio risks that are not fully captured by

our models. We continue to monitor, and seek to manage, the

potential implications of all the above developments on our

customers and our business.

We remain committed to investing in the reliability and resilience of

our technology systems and critical services, including our ability to

withstand and respond to cyber-attacks. We assess our third parties

to help ensure they deliver the standard of services we require to

provide resilient services to our customers. We do so to help protect

our customers and counterparties, and to help ensure that we

minimise any disruption to our services. In our approach to defending

against these threats, we invest in business and technical controls to

help us detect, prevent, manage and recover from issues in a timely

manner within our risk appetite.

We continue to focus on improving the quality and timeliness of the

data used to inform management decisions, and we are progressing

with the implementation of our strategic and regulatory change

initiatives to help deliver the right outcomes for our customers,

people, investors and communities.

Our risk appetite

Our risk appetite defines our desired forward-looking risk profile, and

informs the strategic and financial planning process. It provides an

objective baseline to guide strategic decision making, helping to

ensure that planned business activities provide an appropriate

balance of return for the risk assumed, while remaining within

acceptable risk levels. Risk appetite supports senior management in

allocating capital, funding and liquidity optimally to finance growth,

while monitoring exposure to non-financial risks.

**HSBC Bank plc** Interim Report 2025 on Form 6-K<sub>12</sub>

Capital and liquidity remain at the core of our risk appetite framework,

with forward-looking statements informed by stress testing. We

continue to develop our climate risk appetite as we engage with

businesses on including climate risk in decision making and starting

to embed climate risk appetite into business planning.

Top and emerging risks

Our top and emerging risks process identifies forward-looking risks

so that they can be considered in determining whether any

incremental action is needed to either prevent them from

materialising or to limit their effect.

Top risks are those that have the potential to have a material adverse

impact on our financial results, reputation or business model. We

actively manage and take actions to mitigate our top risks. Emerging

risks are those that, while they could have a material impact on our

risk profile were they to occur, are not considered immediate and are

not under active management.

Our suite of top and emerging risks is subject to regular review by

senior governance forums. We continue to monitor closely the

identified risks and ensure robust management actions are in place,

as required.

Our current top and emerging risks are summarised on the previous

two pages and discussed in more detail on pages 23 to 28 of our

Annual Report and Accounts 2024.

Key developments in the first half of

2025

In the first half of 2025, we continued to manage risks related to

macroeconomic and geopolitical uncertainties and develop risk

management capabilities through the continued enhancement of our

risk management framework. We also retained our focus on risk

transformation and financial crime and continued to assess the

group's operational resilience capability while prioritising the most

significant enterprise risks. We made progress with and continue to

develop capabilities to address key risks described in our Annual

Report and Accounts 2024. More specifically, we sought to enhance

our risk management in the following areas:

–We have advanced our comprehensive initiative aimed at

strengthening our regulatory reporting processes and making

them more sustainable, including enhancements to data,

consistency and controls. While this programme continues, there

may be further impacts on some of our regulatory ratios as we

implement recommended changes and continue to enhance our

controls across the process.

–We strengthened our control environment as part of the Group

through the continued embedding of a Global Control Oversight

function, which aims to drive a centralised approach to controls

oversight across the first line of defence business and process

owners, including a globally consistent approach to control

standards, aggregated reporting and testing.

–We enhanced our technology and cybersecurity controls to help

improve the resilience and security of our technology services in

response to the heightened external threat environment.

–We responded to new innovations in the financial system,

including growing adoption of digital assets and currencies, as

well as the evolving use of AI through reviewing and enhancing

controls across risk areas to help us and our customers safely

benefit from innovation.

–We enhanced our processes, framework and controls to improve

the oversight of our third parties. We have strengthened our due

diligence and monitoring capabilities with respect to the financial

stability of our third parties to better manage our supply chain and

we continue to assess and seek to manage operational resilience.

–We have delivered further enhancements to the way we manage

climate considerations across the organisation. This has been

achieved in alignment with HSBC Group through risk policy and

guideline updates and developing assessments to help manage

exposures. Additionally, we have reviewed a number of climate

models and have sought to enhance our internal climate scenario

analysis capabilities.

–We deployed advanced technology and analytics capabilities to

improve our ability to identify suspicious activities and prevent

financial crime. We will continue to evaluate technological

solutions to improve our capabilities in the detection and

prevention of financial crime.

Credit risk

---

| | |
|:---|:---|
| **<u>[13](#i8ab2a707e9934415b43c6e47db159947_121)</u>** | Summary of credit risk |
| **<u>[17](#i8ab2a707e9934415b43c6e47db159947_127)</u>** | Measurement uncertainty and sensitivity analysis of ECL estimates |
| **<u>[22](#i8ab2a707e9934415b43c6e47db159947_130)</u>** | Reconciliation of changes in gross carrying/nominal amount and <br>allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees<br>|

---

Overview

Credit risk is the risk of financial loss if a customer or counterparty

fails to meet an obligation under a contract. It arises principally from

direct lending, trade finance and leasing business, but also from other

products, such as guarantees and credit derivatives or from holding

assets in the form of debt securities.

Credit risk in the first half of 2025

There were no material changes to credit risk policy in the first half of

2025. ►A summary of our current policies and practices for the management of

credit risk is set out in 'Credit risk management' on page 31 of the Annual

Report and Accounts 2024.

At 30 June 2025, gross loans and advances to banks and customers

of £95.4bn decreased by £2.7bn on a reported basis compared with

31 December 2024. This included total favourable foreign exchange

movements of £1.6bn.

Excluding foreign exchange movements, the balance of personal

gross loans and advances to customers decreased by £5.8bn. This

was mainly due to reclassification of the retained portfolio of home

and other loans in France to a hold-to-collect-and-sell business model,

measuring at fair value through other comprehensive income. This

was partially offset by a £0.3bn increase in wholesale gross loans and

advances to customers, and a £1.2bn increase in gross loans and

advances to banks.

At 30 June 2025, the allowance for ECL excluding foreign exchange

movements in relation to loans and advances to customers

decreased by £197m from 31 December 2024.

This was attributable to:

–a £201m decrease in wholesale loans and advances to customers,

of which £214m in stage 3; partially offset by £12m increase in

stages 1 and 2 and a £1m balance increase in purchased or

originated credit-impaired ('POCI') loans; and

–a £4m increase in personal loans and advances to customers was

mainly due to an increase in stage 3 balances by £9m and

decrease of £5m in stages 1 and 2.

The ECL charge for the first six months of 2025 was £75m, inclusive

of recoveries.

---

| | |
|:---|:---|
| **13** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Risk

Summary of credit risk

The following disclosure presents the gross carrying/nominal amount of financial instruments to which the impairment requirements in IFRS 9

are applied and the associated allowance for ECL.

The following tables analyse loans by industry sector and represent the concentration of exposures on which credit risk is managed.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Summary of financial instruments to which the impairment requirements in IFRS 9 are applied | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Gross carrying/**<br>**nominal amount**<br>| **Allowance for** <br>**ECL**<sup>1</sup><br>| Gross carrying/<br>nominal amount<br>| Allowance for <br>ECL<sup>1</sup><br>|
|  | **£m** | **£m** | £m | £m |
| Loans and advances to customers at amortised cost | **79551** | **(670)** | 83524 | (858) |
| Loans and advances to banks at amortised cost | **15806** | **(3)** | 14524 | (3) |
| Other financial assets measured at amortised cost | **244062** | **(6)** | 237475 | (6) |
| – cash and balances at central banks | **96155** | **—** | 119184 |  |
| – reverse repurchase agreements – non-trading | **68408** | **—** | 53612 |  |
| – financial investments | **14953** | **—** | 12226 |  |
| – assets held for sale | **3473** | **(3)** | 2591 | (3) |
| – prepayments, accrued income and other assets<sup>2</sup> | **61073** | **(3)** | 49862 | (3) |
| **Total on-balance sheet** | **339419** | **(679)** | 335523 | (867) |
| Loans and other credit-related commitments | **145621** | **(46)** | 121764 | (49) |
| Financial guarantees<sup>3</sup> | **2855** | **(4)** | 2876 | (9) |
| **Total off-balance sheet**<sup>4</sup> | **148476** | **(50)** | 124640 | (58) |
|  | **487895** | **(729)** | 460163 | (925) |
|  | **Fair value** | **Memorandum**<br>**allowance for**<br>**ECL**<sup>5</sup><br>| Fair value | Memorandum <br>allowance for<br>ECL<sup>5</sup><br>|
|  | **£m** | **£m** | £m | £m |
| Debt instruments measured at fair value through other comprehensive income <br>('FVOCI')<br>| **52547** | **(26)** | 46649 | (22) |
| – of which: assets held for sale | **11574** | **—** | 6776 |  |

---

1The total ECL is recognised in the loss allowance for the financial asset unless the total ECL exceeds the gross carrying amount of the financial asset, in which

case the ECL is recognised as a provision.

2Includes only those financial instruments that are subject to the impairment requirements of IFRS 9. 'Prepayments, accrued income and other assets' as

presented within the consolidated balance sheet on page <u>[31](#i52ab00d4f0ac43329a13894eab611fa4_3663)</u> comprises both financial and non-financial assets, including cash collateral and settlement

accounts.

3Excludes performance guarantee contracts to which the impairment requirements in IFRS 9 are not applied.

4Represents the maximum amount at risk should the contracts be fully drawn upon and clients default.

5Debt instruments measured at FVOCI continue to be measured at fair value with the allowance for ECL as a memorandum item. Change in ECL is recognised in

'Change for expected credit losses and other credit impairment charges' in the income statement.

**HSBC Bank plc** Interim Report 2025 on Form 6-K<sub>14</sub>

The following table provides an overview of the group's credit risk by

stage and industry, and the associated ECL coverage. The financial

assets recorded in each stage have the following characteristics:

–Stage 1: These financial assets are unimpaired and without a

significant increase in credit risk for which a 12-month allowance

for ECL is recognised.

–Stage 2: A significant increase in credit risk has been experienced

on these financial assets since initial recognition for which a

lifetime ECL is recognised.

–Stage 3: There is objective evidence of impairment and the

financial assets are therefore considered to be in default or

otherwise credit impaired for which a lifetime ECL is recognised.

–Purchased or originated credit-impaired financial assets ('POCI'):

Financial assets that are purchased or originated at a deep

discount are seen to reflect the incurred credit losses on which a

lifetime ECL is recognised.

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 30 June <br>2025 |
|  | **Gross carrying/nominal amount**<sup>1</sup> | **Gross carrying/nominal amount**<sup>1</sup> | **Gross carrying/nominal amount**<sup>1</sup> | **Gross carrying/nominal amount**<sup>1</sup> | **Gross carrying/nominal amount**<sup>1</sup> | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **ECL coverage %** | **ECL coverage %** | **ECL coverage %** | **ECL coverage %** | **ECL coverage %** |
|  | **Stage 1** | **Stage 2** | **Stage 3** | **POCI**<sup>2</sup> | **Total** | **Stage 1** | **Stage 2** | **Stage 3** | **POCI**<sup>2</sup> | **Total** | **Stage 1** | **Stage 2** | **Stage 3** | **POCI**<sup>2</sup> | **Total** |
|  | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **%** | **%** | **%** | **%** | **%** |
| Loans and <br>advances to <br>customers at <br>amortised cost<br>| **72761** | **5051** | **1700** | **39** | **79551** | **(68)** | **(103)** | **(481)** | **(18)** | **(670)** | **0.1** | **2.0** | **28.3** | **46.2** | **0.8** |
| – personal | **13401** | **766** | **295** | **—** | **14462** | **(13)** | **(14)** | **(86)** | **—** | **(113)** | **0.1** | **1.8** | **29.2** | **—** | **0.8** |
| – corporate and <br>commercial<br>| **41803** | **3703** | **1301** | **39** | **46846** | **(44)** | **(84)** | **(372)** | **(18)** | **(518)** | **0.1** | **2.3** | **28.6** | **46.2** | **1.1** |
| – non-bank <br>financial <br>institutions<br>| **17557** | **582** | **104** | **—** | **18243** | **(11)** | **(5)** | **(23)** | **—** | **(39)** | **0.1** | **0.9** | **22.1** | **—** | **0.2** |
| Loans and <br>advances to <br>banks at <br>amortised cost<br>| **15752** | **53** | **1** | **—** | **15806** | **(1)** | **(1)** | **(1)** | **—** | **(3)** | **—** | **1.9** | **100.0** | **—** | **—** |
| Other financial <br>assets <br>measured at <br>amortised cost<br>| **243979** | **48** | **35** | **—** | **244062** | **(3)** | **—** | **(3)** | **—** | **(6)** | **—** | **—** | **8.6** | **—** | **—** |
| Loans and other <br>credit-related <br>commitments<br>| **142777** | **2701** | **140** | **3** | **145621** | **(17)** | **(15)** | **(14)** | **—** | **(46)** | **—** | **0.6** | **10.0** | **—** | **—** |
| – personal | **1050** | **27** | **2** | **—** | **1079** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |
| – corporate and <br>commercial<br>| **60314** | **2361** | **136** | **3** | **62814** | **(13)** | **(14)** | **(13)** | **—** | **(40)** | **—** | **0.6** | **9.6** | **—** | **0.1** |
| – financial | **81413** | **313** | **2** | **—** | **81728** | **(4)** | **(1)** | **(1)** | **—** | **(6)** | **—** | **0.3** | **50.0** | **—** | **—** |
| Financial <br>guarantees<br>| **2582** | **229** | **44** | **—** | **2855** | **(1)** | **(1)** | **(2)** | **—** | **(4)** | **—** | **0.4** | **4.5** | **—** | **0.1** |
| – personal | **124** | **1** | **—** | **—** | **125** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |
| – corporate and <br>commercial<br>| **1102** | **176** | **44** | **—** | **1322** | **(1)** | **(1)** | **(2)** | **—** | **(4)** | **0.1** | **0.6** | **4.5** | **—** | **0.3** |
| – financial | **1356** | **52** | **—** | **—** | **1408** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |
| **At 30 Jun 2025** | **477851** | **8082** | **1920** | **42** | **487895** | **(90)** | **(120)** | **(501)** | **(18)** | **(729)** | **—** | **1.5** | **26.1** | **42.9** | **0.1** |

---

1Represents the maximum amount at risk should the contracts be fully drawn upon and clients default.

2Purchased or originated credit impaired ('POCI').

Unless identified at an earlier stage, all financial assets are deemed to

have suffered a significant increase in credit risk when they are 30

days past due ('DPD') and are transferred from stage 1 to stage 2.

The following disclosure presents the ageing of stage 2 financial

assets by those less than 30 and greater than 30 DPD and therefore

presents those financial assets classified as stage 2 due to ageing (30

DPD) and those identified at an earlier stage (less than 30 DPD).

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Stage 2 days past due analysis at 30 June 2025 | Stage 2 days past due analysis at 30 June 2025 | Stage 2 days past due analysis at 30 June 2025 | Stage 2 days past due analysis at 30 June 2025 | Stage 2 days past due analysis at 30 June 2025 | Stage 2 days past due analysis at 30 June 2025 | Stage 2 days past due analysis at 30 June 2025 | Stage 2 days past due analysis at 30 June 2025 | Stage 2 days past due analysis at 30 June 2025 | Stage 2 days past due analysis at 30 June 2025 |
|  | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **ECL coverage %** | **ECL coverage %** | **ECL coverage %** |
|  |  | **of which:** | **of which:** |  | **of which:** | **of which:** |  | **of which:** | **of which:** |
|  | **Stage 2** | **1 to 29** <br>**DPD**<sup>1,2</sup><br>| **30 and >** <br>**DPD**<sup>1,2</sup><br>| **Stage 2** | **1 to 29** <br>**DPD**<sup>1,2</sup><br>| **30 and >** <br>**DPD**<sup>1,2</sup><br>| **Stage 2** | **1 to 29** <br>**DPD**<sup>1,2</sup><br>| **30 and >** <br>**DPD**<sup>1,2</sup><br>|
|  | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **%** | **%** | **%** |
| Loans and advances to customers at <br>amortised cost<br>| **5051** | **45** | **38** | **(103)** | **(1)** | **(1)** | **2.0** | **2.2** | **2.6** |
| – personal | **766** | **43** | **11** | **(14)** | **(1)** | **(1)** | **1.8** | **2.3** | **9.1** |
| – corporate and commercial | **3703** | **2** | **25** | **(84)** | **—** | **—** | **2.3** | **—** | **—** |
| – non-bank financial institutions | **582** | **—** | **2** | **(5)** | **—** | **—** | **0.9** | **—** | **—** |
| Loans and advances to banks at <br>amortised cost<br>| **53** | **—** | **—** | **(1)** | **—** | **—** | **1.9** | **—** | **—** |
| Other financial assets measured at <br>amortised cost<br>| **48** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |

---

1Up-to-date accounts in stage 2 are not shown in amounts presented above.

2The days past due amounts are presented on a contractual basis.

---

| | |
|:---|:---|
| **15** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Risk

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at<br>31 December 2024 (continued) |
|  | Gross carrying/nominal amount<sup>2</sup> | Gross carrying/nominal amount<sup>2</sup> | Gross carrying/nominal amount<sup>2</sup> | Gross carrying/nominal amount<sup>2</sup> | Gross carrying/nominal amount<sup>2</sup> | Allowance for ECL | Allowance for ECL | Allowance for ECL | Allowance for ECL | Allowance for ECL | ECL coverage % | ECL coverage % | ECL coverage % | ECL coverage % | ECL coverage % |
|  | Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total | Stage 1 | Stage 2 | Stage 3 | POCI | Total |
|  | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | % | % | % | % | % |
| Loans and <br>advances to <br>customers at <br>amortised cost<br>| 75844 | 5546 | 2096 | 38 | 83524 | (56) | (107) | (677) | (18) | (858) | 0.1 | 1.9 | 32.3 | 47.4 | 1.0 |
| – personal | 18733 | 955 | 259 |  | 19947 | (14) | (19) | (79) |  | (112) | 0.1 | 2.0 | 30.5 |  | 0.6 |
| – corporate and <br>commercial<br>| 41386 | 4375 | 1628 | 38 | 47427 | (35) | (85) | (454) | (18) | (592) | 0.1 | 1.9 | 27.9 | 47.4 | 1.2 |
| – non-bank <br>financial <br>institutions<br>| 15725 | 216 | 209 |  | 16150 | (7) | (3) | (144) |  | (154) |  | 1.4 | 68.9 |  | 1.0 |
| Loans and <br>advances to <br>banks at <br>amortised cost<br>| 14457 | 67 |  |  | 14524 | (2) | (1) |  |  | (3) |  | 1.5 |  |  |  |
| Other financial <br>assets measured <br>at amortised <br>cost<br>| 237375 | 59 | 41 |  | 237475 | (4) |  | (2) |  | (6) |  |  | 4.9 |  |  |
| Loan and other <br>credit-related <br>commitments<br>| 116787 | 4812 | 162 | 3 | 121764 | (14) | (24) | (11) |  | (49) |  | 0.5 | 6.8 |  |  |
| – personal | 1149 | 4 | 2 |  | 1155 |  |  |  |  |  |  |  |  |  |  |
| – corporate and <br>commercial<br>| 58281 | 3775 | 146 | 3 | 62205 | (12) | (22) | (10) |  | (44) |  | 0.6 | 6.8 |  | 0.1 |
| – financial | 57357 | 1033 | 14 |  | 58404 | (2) | (2) | (1) |  | (5) |  | 0.2 | 7.1 |  |  |
| Financial <br>guarantees<sup>1</sup><br>| 2763 | 69 | 44 |  | 2876 | (2) | (1) | (6) |  | (9) | 0.1 | 1.4 | 13.6 |  | 0.3 |
| – personal | 130 | 1 |  |  | 131 |  |  |  |  |  |  |  |  |  |  |
| – corporate and <br>commercial<br>| 1288 | 43 | 43 |  | 1374 | (2) | (1) | (5) |  | (8) | 0.2 | 2.3 | 11.6 |  | 0.6 |
| – financial | 1345 | 25 | 1 |  | 1371 |  |  | (1) |  | (1) |  |  | 100.0 |  | 0.1 |
| At 31 Dec 2024 | 447226 | 10553 | 2343 | 41 | 460163 | (78) | (133) | (696) | (18) | (925) |  | 1.3 | 29.7 | 43.9 | 0.2 |

---

1Excludes performance guarantee contracts to which the impairment requirements in IFRS 9 are not applied.

2Represents the maximum amount at risk should the contracts be fully drawn upon and clients default.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Stage 2 days past due analysis at 31 December 2024 (continued) | Stage 2 days past due analysis at 31 December 2024 (continued) | Stage 2 days past due analysis at 31 December 2024 (continued) | Stage 2 days past due analysis at 31 December 2024 (continued) | Stage 2 days past due analysis at 31 December 2024 (continued) | Stage 2 days past due analysis at 31 December 2024 (continued) | Stage 2 days past due analysis at 31 December 2024 (continued) | Stage 2 days past due analysis at 31 December 2024 (continued) | Stage 2 days past due analysis at 31 December 2024 (continued) | Stage 2 days past due analysis at 31 December 2024 (continued) |
|  | Gross carrying amount | Gross carrying amount | Gross carrying amount | Allowance for ECL | Allowance for ECL | Allowance for ECL | ECL coverage % | ECL coverage % | ECL coverage % |
|  |  | of which: | of which: |  | of which: | of which: |  | of which: | of which: |
|  | Stage 2 | 1 to 29 <br>DPD<sup>1,2</sup><br>| 30 and > <br>DPD<sup>1,2</sup><br>| Stage 2 | 1 to 29 <br>DPD<sup>1,2</sup><br>| 30 and > <br>DPD<sup>1,2</sup><br>| Stage 2 | 1 to 29 <br>DPD<sup>1,2</sup><br>| 30 and > <br>DPD<sup>1,2</sup><br>|
|  | £m | £m | £m | £m | £m | £m | % | % | % |
| Loans and advances to customers at <br>amortised cost<br>| 5546 | 81 | 48 | (107) | (3) | (1) | 1.9 | 3.7 | 2.1 |
| – personal | 955 | 74 | 19 | (19) | (3) | (1) | 2.0 | 4.1 | 5.3 |
| – corporate and commercial | 4375 | 6 | 28 | (85) |  |  | 1.9 |  |  |
| – non-bank financial institutions | 216 | 1 | 1 | (3) |  |  | 1.4 |  |  |
| Loans and advances to banks at <br>amortised cost<br>| 67 |  |  | (1) |  |  | 1.5 |  |  |
| Other financial assets measured at <br>amortised cost<br>| 59 |  |  |  |  |  |  |  |  |

---

1Up-to-date accounts in stage 2 are not shown in amounts presented above.

2The days past due amounts presented above are on a contractual basis.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **16** |

---

Stage 2 decomposition

The following table presents the stage 2 decomposition of gross

carrying amount and allowances for ECL for loans and advances to

customers and banks. It also sets out the reasons why an exposure is

classified as stage 2 and therefore presented as a significant increase

in credit risk at 30 June 2025.

The quantitative classification shows gross carrying amount and

allowances for ECL for which the applicable reporting date probability

of default ('PD') measure exceeds defined quantitative thresholds for

retail and wholesale exposures, as set out in Note 1.2 'Summary of

material accounting policies', on page 127 of the Annual Report and

Accounts 2024.

The qualitative classification primarily accounts for customer risk

rating ('CRR') deterioration, watch-and-worry and retail management

judgemental adjustments.

►A summary of our current policies and practices for the significant increase

in credit risk is set out in 'Summary of material accounting policies' on page

127 of the Annual Report and Accounts 2024.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Loans and advances to customers and banksat 30 June 2025<sup>1</sup> | Loans and advances to customers and banksat 30 June 2025<sup>1</sup> | Loans and advances to customers and banksat 30 June 2025<sup>1</sup> | Loans and advances to customers and banksat 30 June 2025<sup>1</sup> | Loans and advances to customers and banksat 30 June 2025<sup>1</sup> | Loans and advances to customers and banksat 30 June 2025<sup>1</sup> | Loans and advances to customers and banksat 30 June 2025<sup>1</sup> | Loans and advances to customers and banksat 30 June 2025<sup>1</sup> | Loans and advances to customers and banksat 30 June 2025<sup>1</sup> | Loans and advances to customers and banksat 30 June 2025<sup>1</sup> | Loans and advances to customers and banksat 30 June 2025<sup>1</sup> |
|  | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** |
|  | **Loans and advances to customers** | **Loans and advances to customers** | **Loans and advances to customers** |  |  | **Loans and advances to customers** | **Loans and advances to customers** | **Loans and advances to customers** |  |  |
|  | **Personal** | **Corporate** <br>**and** <br>**commercial**<br>| **Non-bank** <br>**financial** <br>**institutions**<br>| **Loans and** <br>**advances to** <br>**banks at** <br>**amortised cost**<br>| **Total** <br>**stage 2**<br>| **Personal** | **Corporate** <br>**and** <br>**commercial**<br>| **Non-bank** <br>**financial** <br>**institutions**<br>| **Loans and** <br>**advances to** <br>**banks at** <br>**amortised cost**<br>| **Total** <br>**stage 2**<br>|
|  | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| Quantitative | **655** | **1433** | **234** | **50** | **2372** | **(13)** | **(28)** | **(3)** | **—** | **(44)** |
| Qualitative | **110** | **2257** | **346** | **3** | **2716** | **(1)** | **(56)** | **(2)** | **(1)** | **(60)** |
| of which: forbearance | **—** | **421** | **67** | **—** | **488** | **—** | **(3)** | **—** | **—** | **(3)** |
| 30 DPD backstop<sup>2</sup> | **1** | **13** | **2** | **—** | **16** | **—** | **—** | **—** | **—** | **—** |
| **Total stage 2** | **766** | **3703** | **582** | **53** | **5104** | **(14)** | **(84)** | **(5)** | **(1)** | **(104)** |
| **ECL coverage %** | **1.8** | **2.3** | **0.9** | **1.9** | **2.0** |  |  |  |  |  |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Loans and advances to customers and banks at 31 December 2024<sup>1</sup> | Loans and advances to customers and banks at 31 December 2024<sup>1</sup> | Loans and advances to customers and banks at 31 December 2024<sup>1</sup> | Loans and advances to customers and banks at 31 December 2024<sup>1</sup> | Loans and advances to customers and banks at 31 December 2024<sup>1</sup> | Loans and advances to customers and banks at 31 December 2024<sup>1</sup> | Loans and advances to customers and banks at 31 December 2024<sup>1</sup> | Loans and advances to customers and banks at 31 December 2024<sup>1</sup> | Loans and advances to customers and banks at 31 December 2024<sup>1</sup> | Loans and advances to customers and banks at 31 December 2024<sup>1</sup> | Loans and advances to customers and banks at 31 December 2024<sup>1</sup> |
|  | Gross carrying amount | Gross carrying amount | Gross carrying amount | Gross carrying amount | Gross carrying amount | Allowance for ECL | Allowance for ECL | Allowance for ECL | Allowance for ECL | Allowance for ECL |
|  | Loans and advances to customers | Loans and advances to customers | Loans and advances to customers |  |  | Loans and advances to customers | Loans and advances to customers | Loans and advances to customers |  |  |
|  | Personal | Corporate <br>and <br>commercial<br>| Non-bank <br>financial <br>institutions<br>| Loans and <br>advances to <br>banks at <br>amortised cost<br>| Total <br>stage 2<br>| Personal | Corporate <br>and <br>commercial<br>| Non-bank <br>financial <br>institutions<br>| Loans and <br>advances to <br>banks at <br>amortised cost<br>| Total <br>stage 2<br>|
|  | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m |
| Quantitative | 776 | 2135 | 126 | 64 | 3101 | (18) | (37) | (2) |  | (57) |
| Qualitative | 174 | 2225 | 89 | 3 | 2491 | (1) | (48) | (1) | (1) | (51) |
| of which: forbearance |  | 422 |  |  | 422 |  | (3) |  |  | (3) |
| 30 DPD backstop<sup>2</sup> | 5 | 15 | 1 |  | 21 |  |  |  |  |  |
| Total stage 2 | 955 | 4375 | 216 | 67 | 5613 | (19) | (85) | (3) | (1) | (108) |
| ECL coverage % | 2.0 | 1.9 | 1.4 | 1.5 | 1.9 |  |  |  |  |  |

---

1Where balances satisfy more than one of the above three criteria for determining a significant increase in credit risk, the corresponding gross exposure and ECL

have been assigned in order of categories presented.

2Days past due ('DPD').

Assets held for sale

At 30 June 2025, the most material balance of loans and advances

held for sale came from our custody business in Germany.

'Loans and other credit-related commitments' and 'financial

guarantees', as reported in credit disclosures, also include exposures

and allowances relating to financial assets classified as 'assets held

for sale'.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Loans and advances to customers and banks measured at amortised cost | Loans and advances to customers and banks measured at amortised cost | Loans and advances to customers and banks measured at amortised cost |  |  |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Total gross loans** <br>**and advances**<br>| **Allowance for** <br>**ECL**<br>| Total gross loans <br>and advances<br>| Allowance for <br>ECL<br>|
|  | **£m** | **£m** | £m | £m |
| As reported | **95357** | **(673)** | 98048 | (861) |
| Reported in 'Assets held for sale' | **1575** | **(3)** | 887 | (3) |
| **Total** | **96932** | **(676)** | 98935 | (864) |

---

At 30 June 2025, gross loans and advances classified as 'Assets held

for sale' were £1,575m and the related impairment allowances for

ECL were £3m.

Lending balances held for sale continue to be measured at amortised

cost less allowances for impairment and, therefore, such carrying

amounts may differ from fair value.

These lending balances are part of associated disposal groups that

are measured in their entirety at the lower of carrying amount and fair

value less costs to sell. Any difference between the carrying amount

of these assets and their sales price is part of the overall gain or loss

on the associated disposal group as a whole.

►For further details of the carrying amount and the fair value at 30 June 2025

of loans and advances to banks and customers classified as held for sale,

see Note 11 on the interim condensed consolidated financial statements.

---

| | |
|:---|:---|
| **17** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Risk

Measurement uncertainty and sensitivity analysis of ECL estimates

The recognition and measurement of ECL involves the use of

significant judgement and estimation. We form multiple scenarios

based on economic forecasts and distributional estimates and apply

these to credit risk models to estimate future credit losses. The

results are then probability-weighted to determine an unbiased ECL

estimate.

Management assessed the current economic environment, reviewed

the latest economic forecasts and discussed key risks before

selecting the economic scenarios and their weightings.

Management judgemental adjustments are used where modelled

allowance for ECL does not fully reflect the identified risks and

related uncertainty, or to capture significant late-breaking events.

Methodology

At 30 June 2025, four scenarios were used to capture the latest

economic expectations and to articulate management's view of the

range of risks and potential outcomes. Scenarios are updated with

the latest economic forecasts and distributional estimates in each

quarter.

Three scenarios, the Upside, Central and Downside, are drawn from

external consensus forecasts, market data and distributional

estimates of the entire range of economic outcomes. Consensus

estimates are deployed as conditioning variables in a proprietary

expansion of the scenario variables. The fourth scenario, the

Downside 2, represents management's view of severe downside

risks.

The consensus Central scenario is deemed the 'most likely' scenario,

and usually attracts the largest probability weighting. The consensus

outer scenarios represent short-term cyclical deviations from the

Central scenario, where variable paths converge back to long-term

trend expectations. They are calibrated to a 10% probability.

The Downside 2 scenario is narrative-driven and explores a more

extreme economic outcome than those captured by the consensus

scenarios. In this scenario variables do not, by design, revert to long-

term trend expectations and may instead explore alternative states of

equilibrium, where economic variables move permanently away from

past trends. It is calibrated to a 5% probability.

This weighting scheme is deemed appropriate for the unbiased

estimation of ECL in most circumstances. However, management

may depart from this probability-based scenario weighting approach

when the economic outlook and forecasts are determined to be

particularly uncertain and risks are elevated.

Management assessed that risk and uncertainty around the Central

scenario projection remained elevated in the first half of the year

2025 and scenario weights were adjusted. Weight was reassigned

from the Central scenario to the consensus Downside scenario.

In the first half of the year 2025, outer scenarios for most markets

have been configured as demand shocks. To the downside, the

crystallisation of economic risks causes consumption and investment

to fall sharply and commodity prices to decline. Inflation is lower

relative to the Central scenario in most markets. In the upside

scenario, robust economic growth drives investment and

consumption higher, causing a temporary acceleration of inflation.

Scenarios produced to calculate ECL are aligned to HSBC's top and

emerging risks.

Description of economic scenarios

The economic assumptions presented in this section are formed by

HSBC with reference to external forecasts and estimates for the

purpose of calculating ECL.

Forecasts may change and remain subject to uncertainty. Outer

scenarios are designed to capture potential crystallisation of key

economic and financial risks and alternative paths for economic

variables.

The scenarios used to calculate ECL are described below.

The consensus Central scenario

HSBC's Central scenario incorporates an expectation of slower global

growth across many of our key markets in 2025-2026, relative to the

fourth quarter of 2024. The deterioration reflects the anticipated

effect of greater policy uncertainty and higher US tariff rates on trade,

investment and employment. The scenario is consistent with the

tariff rate, measured as an effective trade-weighted average, of

13.7% in 2025 and 8.6% in 2026.

In the UK, household and business confidence has weakened amid

high policy uncertainty and restrictive interest rates. In Europe,

manufacturing remains in a protracted downturn, and trade policy

uncertainty is also weighing on sentiment. Planned increases in fiscal

spending to support tax cuts, welfare spending and defence are

expected to deliver only incremental additional growth, spread out

over several years.

Global GDP is expected to grow by 2.3% in 2025 in the Central

scenario and the average rate of global GDP growth is forecast to be

2.5% over the entire forecast period.

The key features of our Central scenario are:

–GDP growth rates in most of our main markets are expected to

slow in 2025 compared with 2024, with only moderate recovery

expected in 2026.

–Consistent with weaker expected growth, unemployment is

forecast to rise moderately in 2025, but remain low by historical

standards.

–The expected evolution of inflation is more mixed by market. In

the UK, it is set to remain above target through 2025 and 2026.

Changes to utility prices and employer taxes and wage costs are

seen as the main driver of higher inflation in the UK.

–Challenging conditions are also forecast to continue in certain

segments of the commercial property sector in a number of our

key markets. Structural changes to demand in the office segment

in particular are driving lower valuations.

–Policy interest rates in key markets are forecast to gradually

decline in 2025 and 2026. In the longer term, they are expected to

remain at a higher level than in the pre-pandemic period.

–The Brent crude oil price is forecast to average around $65 per

barrel over the forecast period.

The Central scenario was created from consensus forecasts available

in May, and reviewed continually until the end of June 2025.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **18** |

---

The following table describes key macroeconomic variables in the consensus Central scenario.

---

| | | |
|:---|:---|:---|
| Consensus Central scenario 3Q25-2Q30 (as at 2Q25) | Consensus Central scenario 3Q25-2Q30 (as at 2Q25) | Consensus Central scenario 3Q25-2Q30 (as at 2Q25) |
|  | **UK** | **France** |
| **GDP (annual average growth rate, %)** |  |  |
| 2025 | **0.9** | **0.5** |
| 2026 | **1.2** | **1.0** |
| 2027 | **1.5** | **1.3** |
| 2028 | **1.5** | **1.3** |
| 2029 | **1.5** | **1.2** |
| 5-year average<sup>1</sup> | **1.4** | **1.1** |
| **Unemployment rate (%)** |  |  |
| 2025 | **4.6** | **7.6** |
| 2026 | **4.7** | **7.7** |
| 2027 | **4.5** | **7.5** |
| 2028 | **4.3** | **7.4** |
| 2029 | **4.1** | **7.2** |
| 5-year average<sup>1</sup> | **4.4** | **7.5** |
| **House prices (annual average growth rate, %)** |  |  |
| 2025 | **3.5** | **2.1** |
| 2026 | **1.2** | **4.3** |
| 2027 | **2.4** | **4.9** |
| 2028 | **3.3** | **4.1** |
| 2029 | **2.7** | **3.3** |
| 5-year average<sup>1</sup> | **2.4** | **3.9** |
| **Inflation (annual average growth rate, %)** |  |  |
| 2025 | **3.0** | **1.3** |
| 2026 | **2.3** | **1.6** |
| 2027 | **2.0** | **1.9** |
| 2028 | **2.1** | **2.3** |
| 2029 | **2.0** | **2.2** |
| 5-year average<sup>1</sup> | **2.2** | **1.9** |
| **Central bank policy rate (annual average, %)** |  |  |
| 2025 | **4.2** | **2.1** |
| 2026 | **3.7** | **1.6** |
| 2027 | **3.7** | **1.9** |
| 2028 | **3.8** | **2.2** |
| 2029 | **3.9** | **2.4** |
| 5-year average<sup>1</sup> | **3.8** | **2.1** |

---

1The five-year average is calculated over the 20 quarter projection.

---

| | | |
|:---|:---|:---|
| Consensus Central scenario 2025–2029 (as at 4Q24) | Consensus Central scenario 2025–2029 (as at 4Q24) | Consensus Central scenario 2025–2029 (as at 4Q24) |
|  | UK | France |
| GDP (annual average growth rate, %) |  |  |
| 2025 | 1.2 | 0.9 |
| 2026 | 1.3 | 0.9 |
| 2027 | 1.8 | 1.4 |
| 2028 | 1.6 | 1.5 |
| 2029 | 1.6 | 1.4 |
| 5-year average<sup>1</sup> | 1.5 | 1.2 |
| Unemployment rate (%) |  |  |
| 2025 | 4.9 | 7.5 |
| 2026 | 4.7 | 7.3 |
| 2027 | 4.5 | 7.2 |
| 2028 | 4.3 | 7.0 |
| 2029 | 4.3 | 7.0 |
| 5-year average<sup>1</sup> | 4.5 | 7.2 |
| House prices (annual average growth rate, %) |  |  |
| 2025 | 1.4 | 2.1 |
| 2026 | 3.8 | 4.4 |
| 2027 | 4.6 | 4.4 |
| 2028 | 3.5 | 3.8 |
| 2029 | 2.7 | 3.1 |
| 5-year average<sup>1</sup> | 3.2 | 3.6 |
| Inflation (annual average growth rate, %) |  |  |
| 2025 | 2.4 | 1.2 |
| 2026 | 2.1 | 1.6 |
| 2027 | 2.1 | 2.0 |
| 2028 | 2.0 | 2.3 |
| 2029 | 2.0 | 2.2 |
| 5-year average<sup>1</sup> | 2.1 | 1.9 |
| Central bank policy rate (annual average, %) |  |  |
| 2025 | 4.2 | 2.1 |
| 2026 | 3.9 | 1.8 |
| 2027 | 3.8 | 2.0 |
| 2028 | 3.7 | 2.0 |
| 2029 | 3.7 | 2.1 |
| 5-year average<sup>1</sup> | 3.9 | 2.0 |

---

1The five-year average is calculated over the 20 quarter projection.

---

| | |
|:---|:---|
| **19** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Risk

The graphs compare the respective Central scenario with current

economic expectations beginning in the first half of the year 2025.

**GDP growth: Comparison of Central scenarios**

UK<br>

![125894081854845](hbeu-20250630_g1.gif)

**4Q24 Central 5Y Average: 1.5%**

**2Q25 Central 5Y Average: 1.4%**

Note: Real GDP shown as year-on-year percentage change.

France <br>

![125894081854857](hbeu-20250630_g2.gif)

**4Q24 Central 5Y Average: 1.2%**

**2Q25 Central 5Y Average: 1.1%**

Note: Real GDP shown as year-on-year percentage change.

The consensus Upside scenario

Compared to the Central scenario, the consensus Upside scenario

features stronger economic activity in the near term, before

converging to long-run trend expectations. It also incorporates lower

unemployment and higher asset prices than incorporated in the

Central scenario.

The scenario is consistent with a number of key upside risk themes.

These include a rollback of tariff measures, deregulation, a de-

escalation in geopolitical tensions as the Russia-Ukraine war moves

quickly towards a conclusion and the conflict in the Middle East

subsides, and an improvement in the US-China relationship.

The following table describes key macroeconomic variables in the

consensus Upside scenario.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Consensus Upside scenario (3Q25-2Q30) | Consensus Upside scenario (3Q25-2Q30) | Consensus Upside scenario (3Q25-2Q30) | Consensus Upside scenario (3Q25-2Q30) | Consensus Upside scenario (3Q25-2Q30) |
|  | **UK** | **UK** | **France** | **France** |
| GDP level (%, start-to-peak)<sup>1</sup> | **11.0** | **(2Q30)** | **8.4** | **(2Q30)** |
| Unemployment rate (%, min)<sup>2</sup> | **3.0** | **(1Q27)** | **6.6** | **(2Q27)** |
| House price index (%, start-to-<br>peak)<sup>1</sup><br>| **18.2** | **(2Q30)** | **23.3** | **(2Q30)** |
| Inflation rate (YoY % change, <br>max)<sup>3</sup><br>| **3.3** | **(4Q25)** | **2.3** | **(4Q27)** |
| Central bank policy rate (%, <br>max)<sup>3</sup><br>| **4.3** | **(3Q25)** | **2.5** | **(2Q30)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Consensus Upside scenario 2025–2029 (as at 4Q24) | Consensus Upside scenario 2025–2029 (as at 4Q24) | Consensus Upside scenario 2025–2029 (as at 4Q24) | Consensus Upside scenario 2025–2029 (as at 4Q24) | Consensus Upside scenario 2025–2029 (as at 4Q24) |
|  | UK | UK | France | France |
| GDP level (%, start-to-peak)<sup>1</sup> | 11.3 | (4Q29) | 8.9 | (4Q29) |
| Unemployment rate (%, min)<sup>2</sup> | 3.5 | (3Q26) | 6.4 | (4Q26) |
| House price index (%, start-to-<br>peak)<sup>1</sup><br>| 24.2 | (4Q29) | 22.8 | (4Q29) |
| Inflation rate (YoY % change, <br>min)<sup>3</sup><br>| 1.4 | (1Q26) | 0.1 | (4Q25) |
| Central bank policy rate (%, <br>min)<sup>3</sup><br>| 3.6 | (4Q25) | 1.4 | (3Q25) |

---

1Cumulative change to the highest level of the series during the 20-quarter

projection.

2Lowest projected unemployment in the scenario.

3Highest/lowest projected policy rate and year-on-year percentage change in

inflation in the scenario.

Downside scenarios

Downside scenarios explore the intensification and crystallisation of a

number of key economic and financial risks. The scenarios are

modelled so that economic shocks drive consumption and

investment lower and commodity prices fall. The nature of the shock

varies with the evolution of the risk profile of each country.

Key downside risks include:

–an increase in protectionist policies, as countries that impose

tariffs are met with countermeasures. This lowers investment,

complicates international supply chains and reduces trade flows;

–a broader and more prolonged conflict in the Middle East and the

Russia-Ukraine war, which undermine confidence and investment;

and

–continued differences between the US and China, which affects

economic confidence, and the global goods trade and supply

chains for critical technologies.

The consensus Downside scenario

In the consensus Downside scenario, economic activity is weaker

compared with the Central scenario and the impact of tariffs on the

global economy is worse than expected. The scenario is consistent

with the tariff rate, measured as an effective trade-weighted average,

rising to 27.6% in 2025, remaining at that level in 2026.

In this scenario, GDP declines, rates of unemployment rise and asset

prices fall. The scenario features an increase in tariffs over and above

those assumed in the Central scenario and an escalation of

geopolitical tensions. In most markets, inflation declines relative to

the Central scenario, as tariffs are assumed to drive a drop in US

import demand. Rising unemployment and falling commodity prices

are also calibrated so that they weigh on activity.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **20** |

---

The following table describes key macroeconomic variables in the

consensus Downside scenario.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Consensus Downside scenario (3Q25-2Q30) | Consensus Downside scenario (3Q25-2Q30) | Consensus Downside scenario (3Q25-2Q30) | Consensus Downside scenario (3Q25-2Q30) | Consensus Downside scenario (3Q25-2Q30) |
|  | **UK** | **UK** | **France** | **France** |
| GDP level (%, start-to-trough)<sup>1</sup> | **(0.9)** | **(3Q27)** | **(0.6)** | **(1Q26)** |
| Unemployment rate (%, max)<sup>2</sup> | **6.2** | **(3Q26)** | **8.8** | **(1Q26)** |
| House price index (%, start-to-<br>trough)<sup>1</sup><br>| **(6.4)** | **(4Q26)** | **0.2** | **(3Q25)** |
| Inflation rate (YoY % change)<sup>3</sup> | **1.3** | **(2Q26)** | **0.6** | **(2Q26)** |
| Central bank policy rate (%)<sup>3</sup> | **2.4** | **(1Q28)** | **0.4** | **(1Q26)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Consensus Downside scenario 2025–2029 (as at 4Q24) | Consensus Downside scenario 2025–2029 (as at 4Q24) | Consensus Downside scenario 2025–2029 (as at 4Q24) | Consensus Downside scenario 2025–2029 (as at 4Q24) | Consensus Downside scenario 2025–2029 (as at 4Q24) |
|  | UK | UK | France | France |
| GDP level (%, start-to-trough)<sup>1</sup> | (1.0) | (4Q26) | (0.6) | (1Q26) |
| Unemployment rate (%, max)<sup>2</sup> | 6.1 | (4Q25) | 8.3 | (3Q25) |
| House price index (%, start-to-<br>trough)<sup>1</sup><br>| (4.5) | (1Q26) | (0.3) | (1Q25) |
| Inflation rate (YoY % change, <br>max)<sup>3</sup><br>| 3.4 | (4Q25) | 2.6 | (3Q25) |
| Central bank policy rate (%, <br>max)<sup>3</sup><br>| 5.0 | (1Q25) | 3.2 | (1Q25) |

---

1Cumulative change to the lowest level of the series during the 20-quarter

projection.

2The highest projected unemployment in the scenario.

3Due to the calibration of inflation and interest rates in 2Q25, the table

shows lowest year-on-year percentage change in inflation and projected

policy rates as at 2Q25, and the highest rates as at 4Q24.

Downside 2 scenario

The Downside 2 scenario features a deep global recession and

reflects management's view of the tail of the economic distribution.

The narrative incorporates the crystallisation of a number of risks

simultaneously, including significant increases in tariffs and a further

escalation of geopolitical crises globally. The scenario is consistent

with the tariff rate, measured as an effective trade-weighted average,

rising to 31.6% in 2025, remaining at that level in 2026. In this

scenario, confidence and asset prices fall sharply. The subsequent

drop in demand leads to a steep fall in commodity prices, and a rapid

increase in unemployment.

The following table describes key macroeconomic variables in the

Downside 2 scenario.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Downside 2 scenario (3Q25-2Q30) | Downside 2 scenario (3Q25-2Q30) | Downside 2 scenario (3Q25-2Q30) | Downside 2 scenario (3Q25-2Q30) | Downside 2 scenario (3Q25-2Q30) |
|  | **UK** | **UK** | **France** | **France** |
| GDP level (%, start-to-trough)<sup>1</sup> | **(5.5)** | **(4Q26)** | **(6.3)** | **(4Q26)** |
| Unemployment rate (%, max)<sup>2</sup> | **8.7** | **(4Q26)** | **10.8** | **(2Q27)** |
| House price index (%, start-to-<br>trough)<sup>1</sup><br>| **(26.8)** | **(2Q27)** | **(6.8)** | **(4Q26)** |
| Inflation rate (YoY % change)<sup>3</sup> | **(1.9)** | **(2Q26)** | **(0.4)** | **(3Q26)** |
| Central bank policy rate (%)<sup>3</sup> | **1.6** | **(3Q26)** | **(0.1)** | **(2Q26)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Downside 2 scenario 2025–2029 (as at 4Q24) | Downside 2 scenario 2025–2029 (as at 4Q24) | Downside 2 scenario 2025–2029 (as at 4Q24) | Downside 2 scenario 2025–2029 (as at 4Q24) | Downside 2 scenario 2025–2029 (as at 4Q24) |
|  | UK | UK | France | France |
| GDP level (%, start-to-trough)<sup>1</sup> | (9.1) | (2Q26) | (7.9) | (2Q26) |
| Unemployment rate (%, max)<sup>2</sup> | 8.4 | (2Q26) | 10.4 | (1Q27) |
| House price index (%, start-to-<br>trough)<sup>1</sup><br>| (27.2) | (4Q26) | (14.0) | (2Q27) |
| Inflation rate (YoY % change, <br>max)<sup>3</sup><br>| 10.1 | (2Q25) | 7.6 | (2Q25) |
| Central bank policy rate (%, <br>max)<sup>3</sup><br>| 5.5 | (1Q25) | 4.2 | (1Q25) |

---

1Cumulative change to the lowest level of the series during the 20-quarter

projection.

2The highest projected unemployment in the scenario.

3Due to the calibration of inflation and interest rates in 2Q25, the table

shows lowest year-on-year percentage change in inflation and projected

policy rates as at 2Q25, and the highest rates as at 4Q24.

Scenario weightings

Scenario weightings are calibrated to probabilities that are

determined with reference to consensus forecast probability

distributions. Management may then choose to vary weights if they

assess that the calibration lags more recent events, or does not

reflect their view of the distribution of economic and geopolitical risk.

Management's view of the scenarios and the probability distribution

takes into consideration the relationship of the consensus scenario

for both internal and external assessments of risk.

In the first half of the year 2025, key considerations around

uncertainty attached to the Central scenario projections focused on:

–US import tariffs and bilateral tariff escalations globally. Discussion

noted the impact on trade and manufacturing supply chains and

the uncertainty attached to tariff rate assumptions;

–the outlook for real estate in our key markets, particularly in the

UK;

–some reduction in estimation and forecast uncertainty for UK

unemployment given ongoing methodology updates at the Office

for National Statistics; and

–geopolitical risks, including those arising from the conflict in the

Middle East and the Russia-Ukraine war.

For the first half of the year 2025, scenario weights were adjusted to

the downside to reflect greater risk and uncertainty around the

Central scenario projection. Management assessed that the change

was appropriate given elevated market measures of volatility and

policy uncertainty.

As a consequence, the consensus Central scenario for all key

markets was assigned a weight of 65%, down from 75% at

31 December 2024. The weight assigned to the consensus Upside

scenario was left unchanged at 10%. The remaining 25% was

assigned to the two Downside scenarios. The consensus Downside

scenario received a weight of 20%, up from 10% at 31 December

2024. The weight assigned to the Downside 2 scenario was left

unchanged at 5%.

In light of the Israel-Iran conflict in the Middle East during June 2025,

management monitored developments and assessed potential

implications. Given the limited lasting consequences for global

markets, including oil, and the swift subsequent de-escalation, no

additional action was deemed necessary for economic scenarios or

weights.

The following table describes the probabilities assigned in each

scenario.

---

| | | | |
|:---|:---|:---|:---|
| Scenario weightings, % | Scenario weightings, % | Scenario weightings, % | Scenario weightings, % |
|  | **Standard** <br>**weights**<br>| **UK** | **France** |
| **2Q25** |  |  |  |
| Upside | **10** | **10** | **10** |
| Central | **75** | **65** | **65** |
| Downside | **10** | **20** | **20** |
| Downside 2 | **5** | **5** | **5** |
| 4Q24 |  |  |  |
| Upside | 10 | 10 | 10 |
| Central | 75 | 75 | 75 |
| Downside | 10 | 10 | 10 |
| Downside 2 | 5 | 5 | 5 |

---

---

| | |
|:---|:---|
| **21** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Risk

The following graphs show the historical and forecasted GDP growth

rate for the various economic scenarios in the UK and France.

UK<br>

![125344326041091](hbeu-20250630_g3.gif)

France<br>

![125344326041103](hbeu-20250630_g4.gif)

Note: Real GDP shown as year-on-year percentage change.

Critical estimates and judgements

The calculation of ECL under IFRS 9 involved significant judgements,

assumptions and estimates at 30 June 2025. These included:

–the selection and configuration of economic scenarios, given the

constant change in economic conditions and distribution of

economic risks; and

–estimating the economic effects of those scenarios on ECL,

where similar observable historical conditions cannot be captured

by the credit risk models.

How economic scenarios are reflected in ECL

calculations

The methodologies for the application of forward economic guidance

into the calculation of ECL for wholesale and retail portfolios are set

out on page 47 of the Annual Report and Accounts 2024. Models are

used to reflect economic scenarios in ECL estimates. These models

are based largely on historical observations and correlations with

default.

Economic forecasts and ECL model responses to these forecasts are

subject to a degree of uncertainty. The models continue to be

supplemented by management judgemental adjustments where

required.

Management judgemental adjustments

The management judgemental adjustments in relation to ECL

allowance are detailed on page 47 of the Annual Report and Accounts

2024*.*

---

| | | | |
|:---|:---|:---|:---|
| Management judgemental adjustments to ECL at 30 Jun 2025<sup>1</sup> | Management judgemental adjustments to ECL at 30 Jun 2025<sup>1</sup> | Management judgemental adjustments to ECL at 30 Jun 2025<sup>1</sup> | Management judgemental adjustments to ECL at 30 Jun 2025<sup>1</sup> |
|  | **Retail** | **Wholesale**<sup>2</sup> | **Total** |
|  | **£m** | **£m** | **£m** |
| **Modelled ECL (A)**<sup>3</sup> | **110** | **111** | **221** |
| Corporate lending adjustments | **—** | **21** | **21** |
| Other credit judgements | **11** | **39** | **50** |
| **Total management judgemental** <br>**adjustments (B)**<sup>4</sup><br>| **11** | **60** | **71** |
| **Other adjustments (C)**<sup>5</sup> | **6** | **—** | **6** |
| **Final ECL (A+B+C)**<sup>6</sup> | **127** | **171** | **298** |

---

---

| | | | |
|:---|:---|:---|:---|
| Management judgemental adjustments to ECL at 31 Dec 2024<sup>1</sup> | Management judgemental adjustments to ECL at 31 Dec 2024<sup>1</sup> | Management judgemental adjustments to ECL at 31 Dec 2024<sup>1</sup> | Management judgemental adjustments to ECL at 31 Dec 2024<sup>1</sup> |
|  | Retail | Wholesale<sup>2</sup> | Total |
|  | £m | £m | £m |
| Modelled ECL (A)<sup>3</sup> | 125 | 154 | 279 |
| Corporate lending adjustments |  | 25 | 25 |
| Other credit judgements | 9 | (13) | (4) |
| Total management judgemental <br>adjustments (B)<sup>4</sup><br>| 9 | 12 | 21 |
| Other adjustments (C)<sup>5</sup> | (15) |  | (15) |
| Final ECL (A+B+C)<sup>6</sup> | 119 | 166 | 285 |

---

1Management judgemental adjustments presented in the table reflect

increases or (decreases) in allowance for ECL, respectively.

2The wholesale portfolio corresponds to adjustments to the performing

portfolio (stage 1 and stage 2).

3(A) refers to probability-weighted allowance for ECL before any adjustments

are applied.

4(B) refers to adjustments that are applied where management believes

allowance for ECL does not sufficiently reflect the credit risk/expected

credit loses of any given portfolio at the reporting date. These can relate to

risks or uncertainties that are not reflected in the model and/or to any late-

breaking events.

5(C) refers to adjustments to allowance for ECL made to address process

limitations and data/model deficiencies and can also include, where

appropriate, the impact of new models where governance has sufficiently

progressed to allow an accurate estimate of ECL allowance to be

incorporated into the total reported ECL.

6As presented within our internal credit risk governance (see page 31 of the

Annual Report and Accounts 2024).

At 30 June 2025, wholesale management judgemental adjustments

were an increase to allowance for ECL of £60m (31 December 2024:

£12m increase). Corporate lending adjustments were made to reflect

heightened uncertainty to exposures in automotive and industrial

sectors in Germany, additionally an overlay was applied in UK to

better align ECL to recent portfolio performance. Other credit

judgements increase was largely due to adjustments applied to

France and Germany to better align Loss Given Default ('LGD') model

outputs to historical portfolio performance.

At 30 June 2025, retail management judgemental adjustments were

an increase to allowance for ECL £11m (31 December 2024: £9m

increase). Other adjustments were £6m increase to allowance for

ECL as of 30 June 2025 (31 December 2024: £15m decrease). These

adjustments are due to model limitations and country-specific risks

related to future macroeconomic conditions not fully captured by the

modelled output.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **22** |

---

Economic scenarios sensitivity analysis of

ECL estimates

The economic scenarios sensitivity analysis of ECL estimates is

detailed on page 48 of the Annual Report and Accounts 2024.

Wholesale and retail sensitivity

The wholesale and retail sensitivity tables present the 100%-

weighted results. These exclude portfolios held by the insurance

business, private banking and small portfolios, and as such cannot be

directly compared with personal and wholesale lending presented in

other credit risk tables. In both the wholesale and retail analysis, the

comparative period results for Downside 2 scenarios are also not

directly comparable with the current period, because they reflect

different risks relative to the consensus scenarios for the period end.

The wholesale and retail sensitivity analysis is stated inclusive of

management judgemental adjustments, as appropriate to each

scenario.

For both retail and wholesale portfolios, the gross carrying amount of

financial instruments is the same under each scenario. For exposures

with similar risk profile and product characteristics, the sensitivity

impact is therefore largely the result of changes in macroeconomic

assumptions.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| IFRS 9 ECL sensitivity to future economic conditions | IFRS 9 ECL sensitivity to future economic conditions | IFRS 9 ECL sensitivity to future economic conditions | IFRS 9 ECL sensitivity to future economic conditions | IFRS 9 ECL sensitivity to future economic conditions | IFRS 9 ECL sensitivity to future economic conditions | IFRS 9 ECL sensitivity to future economic conditions |
|  | **Reported** <br>**Gross** <br>**carrying** <br>**amount**<br>| **Reported** <br>**allowance** <br>**for ECL**<br>| **Consensus** <br>**Central** <br>**scenario** <br>**allowance** <br>**for ECL**<br>| **Consensus** <br>**Upside** <br>**scenario** <br>**allowance** <br>**for ECL**<br>| **Consensus** <br>**Downside** <br>**scenario** <br>**allowance** <br>**for ECL**<br>| **Consensus** <br>**Downside 2** <br>**scenario** <br>**allowance** <br>**for ECL**<br>|
| **At 30 Jun 2025** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| Corporate and commercial and NBFIs<sup>1,2,3</sup> | **339565** | **173** | **158** | **135** | **222** | **355** |
| – of which: UK | **132667** | **34** | **31** | **26** | **62** | **101** |
| – of which: France | **141818** | **93** | **87** | **76** | **106** | **141** |
| Mortgages<sup>4</sup> | **4403** | **56** | **56** | **55** | **56** | **62** |
| – of which: UK | **1969** | **2** | **2** | **2** | **2** | **4** |
| Credit cards and other retail<sup>4</sup> | **68** | **1** | **1** | **1** | **1** | **1** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| At 31 Dec 2024 |  |  |  |  |  |  |
| Corporate and commercial and NBFIs<sup>1,2,3</sup> | 347588 | 165 | 155 | 130 | 192 | 552 |
| – of which: UK | 139207 | 39 | 35 | 25 | 50 | 284 |
| – of which: France | 145484 | 64 | 63 | 55 | 76 | 99 |
| Mortgages<sup>4</sup> | 4479 | 67 | 66 | 66 | 67 | 74 |
| – of which: UK | 1979 | 2 | 2 | 2 | 2 | 4 |
| Credit cards and other retail<sup>4</sup> | 68 | 1 | 1 | 1 | 1 | 1 |

---

1Allowance for ECL sensitivity includes off-balance sheet financial instruments. These are subject to significant measurement uncertainty.

2Includes low credit-risk financial instruments such as debt instruments at FVOCI, which have high carrying amounts but low ECL under all the above scenarios.

3Excludes defaulted obligors.

4Allowance for ECL sensitivities exclude portfolios utilising less complex modelling approaches.

Compared with 31 December 2024, the Downside 2 ECL impact decreased, mostly in the UK due to new PD models. These models include a

recent calibration of credit risk experience under a higher interest rate environment, and result in a reduction of sensitivity to severe stress

under similar conditions.

Reconciliation of changes in gross carrying/nominal amount and allowances

for loans and advances to banks and customers including loan commitments

and financial guarantees

The following disclosure provides a reconciliation by stage of the

group's gross carrying/nominal amount and allowances for loans and

advances to banks and customers, including loan commitments and

financial guarantees. Movements are calculated on a quarterly basis

and therefore fully capture stage movements between quarters. If

movements were calculated on a year-to-date basis they would only

reflect the opening and closing position of the financial instrument.

The transfers of financial instruments represent the impact of stage

transfers upon the gross carrying/nominal amount and associated

allowance for ECL.

The net remeasurement of ECL arising from stage transfers

represents the increase or decrease due to these transfers, for

example, moving from a 12-month (stage 1) to a lifetime (stage 2)

ECL measurement basis. Net remeasurement excludes the

underlying CRR/PD movements of the financial instruments

transferring stage. This is captured, along with other credit quality

movements in the 'changes in risk parameters – credit quality' line

item.

Changes in 'Net new and further lending/repayments' represent the

impact from volume movements within the group's lending portfolio

and include 'New financial assets originated or purchased', 'assets

derecognised (including final repayments)' and 'changes to risk

parameters – further lending/repayment'.

---

| | |
|:---|:---|
| **23** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Risk

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> |
| (Reviewed) |  |  |  |  |  |  |  |  |  |  |
|  | **Non-credit impaired** | **Non-credit impaired** | **Non-credit impaired** | **Non-credit impaired** | **Credit impaired** | **Credit impaired** | **Credit impaired** | **Credit impaired** |  |  |
|  | **Stage 1** | **Stage 1** | **Stage 2** | **Stage 2** | **Stage 3** | **Stage 3** | **POCI** | **POCI** | **Total** | **Total** |
|  | **Gross** <br>**carrying/**<br>**nominal** <br>**amount**<br>| **Allowance**<br>**for ECL**<br>| **Gross** <br>**carrying/** <br>**nominal** <br>**amount**<br>| **Allowance** <br>**for ECL**<br>| **Gross** <br>**carrying/** <br>**nominal** <br>**amount**<br>| **Allowance** <br>**for ECL**<br>| **Gross** <br>**carrying/** <br>**nominal** <br>**amount**<br>| **Allowance**<br>**for ECL**<br>| **Gross** <br>**carrying/**<br>**nominal** <br>**amount**<br>| **Allowance**<br>**for ECL**<br>|
|  | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| **At 1 Jan 2025** | **177176** | **(74)** | **10494** | **(133)** | **2302** | **(694)** | **41** | **(18)** | **190013** | **(919)** |
| Transfers of financial <br>instruments:<br>| **834** | **(23)** | **(987)** | **25** | **156** | **(2)** | **—** | **—** | **3** | **—** |
| – transfers from stage 1 to <br>stage 2<br>| **(4377)** | **4** | **4377** | **(4)** | **—** | **—** | **—** | **—** | **—** | **—** |
| – transfers from stage 2 to <br>stage 1<br>| **5318** | **(27)** | **(5318)** | **27** | **—** | **—** | **—** | **—** | **—** | **—** |
| – transfers to stage 3 | **(111)** | **—** | **(149)** | **9** | **262** | **(9)** | **—** | **—** | **2** | **—** |
| – transfers from stage 3 | **4** | **—** | **103** | **(7)** | **(106)** | **7** | **—** | **—** | **1** | **—** |
| Net remeasurement of ECL <br>arising from transfer of stage<br>| **—** | **21** | **—** | **(15)** | **—** | **—** | **—** | **—** | **—** | **6** |
| Net new and further lending/<br>repayments<br>| **(449)** | **(6)** | **(1551)** | **20** | **(341)** | **13** | **1** | **—** | **(2340)** | **27** |
| Changes to risk parameters – <br>credit quality<br>| **—** | **(11)** | **—** | **(47)** | **—** | **(64)** | **—** | **(1)** | **—** | **(123)** |
| Changes to model used for ECL <br>calculation<br>| **—** | **6** | **—** | **29** | **—** | **—** | **—** | **—** | **—** | **35** |
| Assets written off | **—** | **—** | **—** | **—** | **(259)** | **259** | **—** | **—** | **(259)** | **259** |
| Foreign exchange | **3456** | **1** | **231** | **(1)** | **46** | **(9)** | **—** | **—** | **3733** | **(9)** |
| Others<sup>2,3,4</sup> | **(4006)** | **(1)** | **(153)** | **2** | **(19)** | **(1)** | **—** | **1** | **(4178)** | **1** |
| **At 30 Jun 2025** | **177011** | **(87)** | **8034** | **(120)** | **1885** | **(498)** | **42** | **(18)** | **186972** | **(723)** |
| ECL income statement change <br>for the period<br>|  | **10** |  | **(13)** |  | **(51)** |  | **(1)** |  | **(55)** |
| Recoveries |  |  |  |  |  |  |  |  |  | **1** |
| Others |  |  |  |  |  |  |  |  |  | **(22)** |
| **Total ECL income statement** <br>**change for the period**<br>|  |  |  |  |  |  |  |  |  | **(76)** |

---

---

| | | | |
|:---|:---|:---|:---|
| Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | **Half-year ended** <br>**30 Jun 2025**<br>|
|  | **Gross carrying/**<br>**nominal amount**<br>| **Allowance**<br>**for ECL**<br>| **ECL**<br> **charge**<br>|
|  | **£m** | **£m** | **£m** |
| **As above** | **186972** | **(723)** | **(76)** |
| Other financial assets measured at amortised cost | **244062** | **(6)** | **—** |
| Non-trading reverse purchase agreement commitments | **56861** | **—** | **—** |
| Performance and other guarantee not considered for IFRS 9 | **—** | **—** | **2** |
| **Summary of financial instruments to which the impairment requirements in IFRS 9 are applied/**<br>**Summary consolidated income statement**<br>| **487895** | **(729)** | **(74)** |
| Debt instruments measured at FVOCI | **52547** | **(26)** | **(1)** |
| **Total allowance for ECL/total income statement ECL change for the period** | **N/A** | **(755)** | **(75)** |

---

1Excludes performance guarantee contracts to which the impairment requirements in IFRS 9 are not applied.

2Includes the period on period movement in exposures relating to other HSBC Group companies. At 30 June 2025, this amount increased by £2.1bn and was

classified as stage 1 with no ECL.

3Total includes £0.7bn of gross carrying loans and advances to customers and banks, which were classified to assets held for sale, reflecting business disposals

as disclosed in Note 11: 'Assets held for sale and liabilities of disposal groups held for sale' on page <u>[48](#iacd8298e657548c194fe64b7dc4c5258_0-1-1-1-7996308)</u>.

4This includes £5.6bn of gross carrying loans and advances to customers and corresponding allowance for ECL of £6m in relation to France retail portfolio of

home and certain other loans, which were classified to assets held for sale in 1H25, reflecting business disposals as disclosed in Note 11: 'Assets held for sale

and liabilities of disposal groups held for sale' on page <u>[48](#iacd8298e657548c194fe64b7dc4c5258_0-1-1-1-7996308)</u>.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **24** |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) |
| (Reviewed) |  |  |  |  |  |  |  |  |  |  |
|  | Non-credit impaired | Non-credit impaired | Non-credit impaired | Non-credit impaired | Credit Impaired | Credit Impaired | Credit Impaired | Credit Impaired |  |  |
|  | Stage 1 | Stage 1 | Stage 2 | Stage 2 | Stage 3 | Stage 3 | POCI | POCI | Total | Total |
|  | Gross <br>carrying/<br>nominal <br>amount<br>| Allowance <br>for ECL<br>| Gross <br>carrying/ <br>nominal <br>amount<br>| Allowance <br>for ECL<br>| Gross <br>carrying/ <br>nominal <br>amount<br>| Allowance <br>for ECL<br>| Gross <br>carrying/ <br>nominal <br>amount<br>| Allowance <br>for ECL<br>| Gross <br>carrying/<br>nominal <br>amount<br>| Allowance <br>for ECL<br>|
|  | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m |
| At 1 Jan 2024 | 162228 | (91) | 15445 | (147) | 2556 | (903) | 35 | (6) | 180264 | (1147) |
| Transfers of financial instruments: | 2460 | (42) | (3223) | 47 | 763 | (5) |  |  |  |  |
| – transfers from stage 1 to stage 2 | (7440) | 8 | 7440 | (8) |  |  |  |  |  |  |
| – transfers from stage 2 to stage 1 | 10182 | (48) | (10182) | 48 |  |  |  |  |  |  |
| – transfers to stage 3 | (390) | 1 | (649) | 13 | 1039 | (14) |  |  |  |  |
| – transfers from stage 3 | 108 | (3) | 168 | (6) | (276) | 9 |  |  |  |  |
| Net remeasurement of ECL arising from <br>transfer of stage<br>|  | 29 |  | (22) |  |  |  |  |  | 7 |
| Net new and further lending/repayments | 10816 | 7 | (1409) | 3 | (635) | 322 | 6 | (7) | 8778 | 325 |
| Changes to risk parameters – credit quality |  | 23 |  | (31) |  | (504) |  | (5) |  | (517) |
| Changes to model used for ECL calculation |  | (1) |  | 17 |  |  |  |  |  | 16 |
| Assets written off |  |  |  |  | (257) | 255 |  |  | (257) | 255 |
| Foreign exchange | (4916) | 2 | (345) | 2 | (83) | 24 |  |  | (5344) | 28 |
| Others<sup>2</sup> | 6588 | (1) | 26 | (2) | (42) | 117 |  |  | 6572 | 114 |
| At 31 Dec 2024 | 177176 | (74) | 10494 | (133) | 2302 | (694) | 41 | (18) | 190013 | (919) |
| ECL income statement change for the <br>period<br>|  | 58 |  | (33) |  | (182) |  | (12) |  | (169) |
| Recoveries |  |  |  |  |  |  |  |  |  | 2 |
| Others |  |  |  |  |  |  |  |  |  | 13 |
| Total ECL income statement change for the <br>period<br>|  |  |  |  |  |  |  |  |  | (154) |

---

---

| | | | |
|:---|:---|:---|:---|
| Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan <br>commitments and financial guarantees<sup>1</sup> (continued) |
|  | At 31 Dec 2024 | At 31 Dec 2024 | 12 months ended <br>31 Dec 2024<br>|
|  | Gross carrying/<br>nominal amount<br>| Allowance <br>for ECL<br>| ECL<br> charge<br>|
|  | £m | £m | £m |
| As above | 190013 | (919) | (154) |
| Other financial assets measured at amortised cost | 237475 | (6) | (6) |
| Non-trading reverse purchase agreement commitments | 32675 |  |  |
| Performance and other guarantees not considered for IFRS 9 |  |  | (2) |
| Summary of financial instruments to which the impairment requirements in IFRS 9 are applied/<br>Summary consolidated income statement<br>| 460163 | (925) | (162) |
| Debt instruments measured at FVOCI | 46649 | (22) | (1) |
| Total allowance for ECL/total income statement ECL change for the period | N/A | (947) | (163) |

---

1Excludes performance guarantee contracts to which the impairment requirements in IFRS 9 are not applied.

2Includes the period on period movement in exposures relating to other HSBC Group companies. At 31 December 2024, these amounted to £0.77bn and were

classified as stage 1 with no ECL.

Treasury risk

Overview

Treasury risk is the risk of having insufficient capital, liquidity or

funding resources to meet financial obligations and satisfy regulatory

requirements. This includes the risk of adverse impact on earnings or

capital due to structural and transactional foreign exchange

exposures, as well as changes in market interest rates, together with

pension risk and insurance risk.

Key developments in the first half of 2025

–HSBC Bank plc continues to maintain and benefit from a healthy

capital, liquidity and funding position, which has not been

materially impacted by the periods of volatility in the

macroeconomic environment and global markets during the first

half of the year.

–See page <u>[10](#i40008870ac9143fe91c707b036a42e2f_20548)</u> for a summary of key risks including geopolitical and

macroeconomic risks that we are managing.

►For quantitative disclosures on capital ratios, own funds and RWAs, see

pages <u>[25](#i3d169bd7748d452289063ebeea4a3028_44332)</u> to <u>[26](#i29ed463fdeb9443ea0beb5035aae83ee_43657)</u>. For quantitative disclosures on interest rate in the banking

book, see page <u>[25](#i8ab2a707e9934415b43c6e47db159947_7683)</u>.

Capital, liquidity and funding risk

management processes

**Assessment and risk appetite**

A summary of our risk management approach and processes is set

out on pages 73 to 77 of our Annual Report and Accounts 2024.

HSBC Holdings provides Minimum Requirement for Own Funds and

Eligible Liabilities ('MREL') to HSBC Bank plc and its other

subsidiaries, including equity and non-equity capital. These

investments are funded by HSBC Holdings' own equity capital and

MREL– eligible debt. MREL includes own funds and liabilities that can

be written down or converted into capital resources in order to

absorb losses or recapitalise a bank in the event of its failure.

---

| | |
|:---|:---|
| **25** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Risk

For a description of our resolution groups and approach to stress

testing and resolution planning see pages 74 and 75 of the Annual

Report and Accounts 2024.

For details on Regulatory developments, see our Pillar 3 Disclosures

at 30 June 2025, which is expected to be published on or around

6 August 2025 at https:www.hsbc.com/investors.

Measurement of interest rate risk in the

banking book processes

A summary of our risk management approach and processes is set

out on page 75 of our Annual Report and Accounts 2024.

Banking net interest income sensitivity

disclosure

An immediate interest rate rise of 100bps would increase projected

banking NII by £8m. An immediate interest rate fall of 100bps would

decrease projected banking NII by £8m.

The sensitivity of banking NII for 12 months as at 30 June 2025

decreased by £44m in the plus 100bps parallel shock, and by £44m in

the minus 100bps parallel shock, when compared with 31 December

2024. The drivers of the reduction in banking NII sensitivity include

the increase in stabilisation activities in line with Group strategy.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Banking NII sensitivity to an instantaneous change in yield curves (12 months) | Banking NII sensitivity to an instantaneous change in yield curves (12 months) | Banking NII sensitivity to an instantaneous change in yield curves (12 months) | Banking NII sensitivity to an instantaneous change in yield curves (12 months) | Banking NII sensitivity to an instantaneous change in yield curves (12 months) |
|  | **+100bps parallel** | **-100bps parallel** | **-100bps parallel** | **-100bps parallel** |
|  | **Year 1 (Jul 2025 to Jun 2026)** | **Year 1 (Jul 2025 to Jun 2026)** | **Year 2 (Jul 2026 to Jun 2027)** | **Year 3 (Jul 2027 to Jun 2028)** |
| **Based on balance sheet at 30 Jun 2025 (£m)** | **8** | **(8)** | **(30)** | **(73)** |
|  | Year 1 (Jan 2025 to Dec 2025) | Year 1 (Jan 2025 to Dec 2025) | Year 2 (Jan 2026 to Dec 2026) | Year 3 (Jan 2027 to Dec 2027) |
| Based on balance sheet at 31 Dec 2024 (£m) | 52 | (52) | (44) | (110) |

---

Capital risk in the first half of 2025

Capital overview

---

| | | |
|:---|:---|:---|
| Capital adequacy metrics | Capital adequacy metrics | Capital adequacy metrics |
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
| **Risk-weighted assets ('RWAs') (£m)** |  |  |
| Credit risk | **65345** | 61456 |
| Counterparty credit risk | **19101** | 18228 |
| Market risk | **14363** | 18519 |
| Operational risk | **13898** | 14048 |
| **Total RWAs** | **112707** | 112251 |
| **Capital on a transitional basis (£m)** |  |  |
| Common equity tier 1 ('CET1') capital | **21840** | 21896 |
| Tier 1 capital | **25959** | 25828 |
| Total capital | **40612** | 41306 |
| **Capital ratios on a transitional basis (%)** |  |  |
| Common equity tier 1 | **19.4** | 19.5 |
| Total tier 1 | **23.0** | 23.0 |
| **Total capital ratio** | **36.0** | 36.8 |
| **Leverage ratio (fully phased-in)** |  |  |
| Tier 1 capital (£m) | **25959** | 25828 |
| Total leverage ratio exposure measure (£m) | **501586** | 468557 |
| **Leverage ratio (%)** | **5.2** | 5.5 |

---

References to EU regulations and directives (including technical

standards) should, as applicable, be read as references to the UK's

version of such regulations and directives, as onshored into UK law

under the European Union (Withdrawal) Act 2018, and as may be

subsequently amended under UK law.

Capital figures and ratios in the previous table are calculated in

accordance with the regulatory requirements of the Capital

Requirements Regulation and Directive, the CRR II regulation and the

Prudential Regulation Authority ('PRA') Rulebook ('CRR II'). Effective

1 January 2025, the IFRS 9 transitional arrangements came to an end,

followed by the end of the CRR II grandfathering provisions on

28 June 2025. Accordingly, our current period numbers are the same

on both the transitional and end-point basis.

Regulatory numbers and ratios are as presented at the date of

reporting. Small changes may exist between these numbers and

ratios and those subsequently submitted in regulatory filings. Where

differences are significant, we may restate in subsequent periods.

Own funds

---

| | | | |
|:---|:---|:---|:---|
| Own funds disclosure | Own funds disclosure | Own funds disclosure | Own funds disclosure |
|  |  | At | At |
|  |  | **30 Jun 2025** | 31 Dec 2024 |
| Ref<sup>\*</sup> |  | **£m** | £m |
| 6 | **Common equity tier 1 capital before regulatory adjustments** | **23442** | 23064 |
| 28 | Total regulatory adjustments to common equity tier 1 | **(1602)** | (1168) |
| 29 | **Common equity tier 1 capital** | **21840** | 21896 |
| 36 | Additional tier 1 capital before regulatory adjustments  | **4119** | 3932 |
| 44 | **Additional tier 1 capital** | **4119** | 3932 |
| 45 | **Tier 1 capital** | **25959** | 25828 |
| 51 | Tier 2 capital before regulatory adjustments | **15014** | 15835 |
| 57 | Total regulatory adjustments to tier 2 capital  | **(361)** | (357) |
| 58 | **Tier 2 capital** | **14653** | 15478 |
| 59 | **Total capital** | **40612** | 41306 |
|  | **Capital ratios** | **%** | % |
| 61 | Common equity tier 1 (as a percentage of total risk exposure amount) | **19.38** | 19.51 |
| 62 | Tier 1 (as a percentage of total risk exposure amount) | **23.03** | 23.01 |
| 63 | **Total capital (as a percentage of total risk exposure amount)** | **36.03** | 36.80 |

---

\*These are references to lines prescribed in the Pillar 3 'Own funds disclosure' template.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **26** |

---

At 30 June 2025, our common equity tier 1 ('CET1') capital ratio

decreased to 19.4% from 19.5% at 31 December 2024. The key

drivers of the decline in our CET1 ratio were:

–a (0.8) percentage point decrease from reduction in fair value

through other comprehensive income reserve due to fair value

movements;

–a (0.6) percentage point decrease driven by higher RWAs, mainly

due to an increase in asset size and methodology changes in our

CIB business;

–a 0.8 percentage point increase due to FX movement, prudential

valuation adjustments and other movements; and

–a 0.5 percentage point increase from capital generation through

profits net of dividend payment.

Throughout 2025, we complied with the PRA's regulatory capital

adequacy requirements, including those relating to stress testing.

Risk-weighted assets

---

| | |
|:---|:---|
| RWA movement by key driver | RWA movement by key driver |
|  | **Total RWAs** |
|  | **£m** |
| **RWAs at 1 Jan 2025** | **112251** |
| Asset size | **1604** |
| Asset quality | **510** |
| Methodology and policy | **1536** |
| Acquisitions and disposals | **(382)** |
| Foreign exchange movement | **(2812)** |
| **Total RWA movement** | **456** |
| **RWAs at 30 Jun 2025** | **112707** |

---

During the first half of year, RWAs increased by £0.5bn. Excluding

foreign currency translation differences of £(2.8)bn, RWAs rose by

£3.3bn.

**Asset size**

The £1.6bn increase in Asset size was mainly driven by:

–£2.8bn rise in Credit Risk RWAs primarily due to an increase in

corporate loans exposures in our CIB business, partly offset by a

revaluation of loan assets leading to a reduction in original

exposure and RWAs.

–£1.5bn rise in Counterparty Credit Risk RWAs primarily due to a

rise in derivatives and Securities Financing Transactions portfolio

driven by client activity and favourable yields, mainly in our CIB

business.

–£(2.7)bn fall in Market risk RWAs, mainly due to a reduction in

stressed value at risk ('SVaR') averages, resulting from changes in

the stressed period windows. This was further supplemented by

the decrease driven by lower foreign exchange exposures.

**Asset quality**

The asset quality increase of £0.5bn was primarily driven by portfolio

mix changes in Credit Risk.

**Methodology and policy**

The £1.5bn increase was primarily driven by methodology changes in

our CIB business, partly offset by the restructuring of legacy

securitisation positions.

**Acquisitions and disposals**

The £(0.4)bn decrease was mainly driven by a PRA waiver granted in

2025 for the exclusion of operational risk RWAs associated with the

sale of our retail banking operations in France.

Leverage ratio

Our leverage ratio was 5.2% at 30 June 2025, down from 5.5% at

31 December 2024. This was driven by the increase in leverage

exposure, mainly due to growth in balance sheet, partially offset by a

rise in Tier 1 capital.

At 30 June 2025, our UK minimum leverage ratio requirement of

3.25% was supplemented by a countercyclical leverage ratio buffer

of 0.40%. The leverage ratio is expressed in terms of Tier1 capital but

these buffers translated to CET1 capital values of £2.0bn. We

exceeded these leverage requirements throughout 1H25.

---

| | | |
|:---|:---|:---|
| Leverage ratio | Leverage ratio |  |
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **£m** | £m |
| Tier 1 capital | **25959** | 25828 |
| Total leverage ratio exposure | **501586** | 468557 |
|  | **%** | % |
| **Leverage ratio** | **5.2** | 5.5 |

---

Pillar 3 disclosure requirements

Pillar 3 of the Basel regulatory framework is related to market

discipline and aims to make financial services firms more transparent

by requiring publication of wide-ranging information on their risks,

capital and management. Our Pillar 3 Disclosures at 30 June 2025 is

expected to be published on or around 6 August 2025, on our

website www.hsbc.com/investors.

Market risk in the first half of 2025

There were no material changes to the policies and practices for the

management of market risk in the first half of 2025.

We continued to manage market risk prudently in the first half of

2025. Market risk was managed using a complementary set of risk

measures and limits including stress testing and scenario analysis.

Main sensitivity exposures and Value at Risk ('VaR') levels remained

within risk appetite, as the business pursued its core market making

activities in support of our customers. We ran stress testing for

scenarios focusing on the potential financial impact of US trade

tariffs, conflict in the Middle East and Russia- Ukraine war.

Trading portfolios

**Value at risk of the trading portfolios**

The Trading VaR predominantly resides within Market Securities

Services where it stood at £19.4m as at 30 June 2025, compared

with £21.8m at 31 December 2024. The Trading VaR was driven by

the market making activity in developed and emerging market on

rates, FX, equities and credit products. The Total Trading VaR peaked

at £32.3m in June 2025 following increased market making activities

on rates and FX products. The Trading VaR subsequently decreased

from the peak level and remained fairly stable.

---

| | |
|:---|:---|
| **27** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Risk

The trading VaR for the half-year to 30 June 2025 is shown in the table below.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Trading VaR, 99% 1 day | Trading VaR, 99% 1 day | Trading VaR, 99% 1 day | Trading VaR, 99% 1 day | Trading VaR, 99% 1 day | Trading VaR, 99% 1 day | Trading VaR, 99% 1 day |
|  | **Foreign exchange**<br> **('FX') and commodity**<br>| **Interest** <br>**rate ('IR')**<br>| **Equity**<br> **('EQ')**<br>| **Credit spread** <br>**('CS')**<br>| **Portfolio** <br>**diversification**<sup>1</sup><br>| **Total**<sup>2</sup> |
|  | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| **Half-year to 30 Jun 2025** | **7.5** | **7.4** | **10.5** | **9.0** | **(15.0)** | **19.4** |
| Average | **9.3** | **11.2** | **11.1** | **6.6** | **(14.7)** | **23.5** |
| Maximum | **20.1** | **19.2** | **15.3** | **11.0** |  | **32.3** |
| Minimum | **3.8** | **6.0** | **8.6** | **3.8** |  | **16.3** |
| Half-year to 30 Jun 2024 | 10.0 | 15.0 | 10.7 | 7.0 | (16.5) | 26.2 |
| Average | 8.1 | 21.4 | 9.5 | 7.4 | (18.4) | 27.9 |
| Maximum | 14.8 | 27.8 | 11.5 | 9.3 |  | 37.2 |
| Minimum | 4.2 | 12.6 | 8.1 | 4.5 |  | 18.7 |
| Half-year to 31 Dec 2024 | 6.9 | 11.2 | 12.6 | 4.6 | (13.5) | 21.8 |
| Average | 8.5 | 13.7 | 11.3 | 5.7 | (14.7) | 24.5 |
| Maximum | 14.8 | 23.9 | 13.4 | 7.7 |  | 36.1 |
| Minimum | 4.5 | 7.8 | 9.1 | 4.1 |  | 18.5 |

---

1Portfolio diversification is the market risk dispersion effect of holding a portfolio containing different risk types. It represents the reduction in unsystematic

market risk that occurs when combining a number of different risk types, for example, interest rate, equity and foreign exchange, together in one portfolio. It is

measured as the difference between the sum of the VaR by individual risk type and the combined total VaR. A negative number represents the benefit of

portfolio diversification. As the maximum occurs on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit for

this measure.

2The Total VaR is non-additive across risk types due to diversification effect and it includes "Risks Not in VaR" ("RNIV") add-ons.

**Back-testing**

In the first half of 2025, there were no back-testing exceptions

against actual as well as hypothetical profit and losses.

Non-trading portfolios

**Value at risk of the non-trading portfolios**

Non-trading portfolios comprise of positions that primarily arise from

the interest rate management of our retail and wholesale banking

assets and liabilities, financial investments measured at fair value

through other comprehensive income ('FVOCI') or at amortised cost.

A summary of the methodology for our VaR of non-trading portfolios

can be found on page 75 of our Annual Report and Accounts 2024.

Insurance operations were excluded from non-trading VaR as of

30 June 2025, which resulted in an immaterial impact.

Details on insurance operations can be found on page <u>[28](#ibacde3b389bc4ff08abd29820d7197d2_59415)</u> and the

market risk impact of insurance operations on page 92 of the Annual

Report and Accounts 2024.

The non-trading 10d VaR in the half year to 30 June 2025 was driven

by interest rate risk in the banking book arising from Markets

Treasury positions. The non-trading VaR remained stable at £124m at

30 June 2025, compared with £134m at 31 December 2024, with the

minimal variation in VaR over this period driven by the duration risk

associated with Markets Treasury positioning in response to changing

rate expectations.

The non-trading VaR for the half-year to 30 June 2025 is shown in the table below.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Non-trading VaR, 99% 10 day | Non-trading VaR, 99% 10 day | Non-trading VaR, 99% 10 day | Non-trading VaR, 99% 10 day | Non-trading VaR, 99% 10 day |
|  | **Interest rate** <br>**('IR')**<br>| **Credit spread** <br>**('CS')**<br>| **Portfolio** <br>**diversification**<sup>1</sup><br>| **Total**<sup>2</sup> |
|  | **£m** | **£m** | **£m** | **£m** |
| **Half-year to 30 Jun 2025** | **88.1** | **41.9** | **(6.0)** | **123.9** |
| Average | **89.1** | **42.9** | **(3.7)** | **128.3** |
| Maximum | **115.9** | **45.7** |  | **147.2** |
| Minimum | **75.0** | **41.4** |  | **113.2** |
| Half-year to 30 Jun 2024 | 128.4 | 36.9 | (40.1) | 125.3 |
| Average | 143.6 | 36.3 | (37.6) | 142.4 |
| Maximum | 202.3 | 42.0 |  | 216.3 |
| Minimum | 66.2 | 29.6 |  | 70.0 |
| Half-year to 31 Dec 2024 | 101.0 | 41.1 | (8.4) | 133.7 |
| Average | 85.2 | 39.7 | (25.7) | 99.1 |
| Maximum | 131.9 | 57.7 |  | 133.7 |
| Minimum | 41.5 | 29.1 |  | 54.8 |

---

1Portfolio diversification is the market risk dispersion effect of holding a portfolio containing different risk types. It represents the reduction in unsystematic

market risk that occurs when combining a number of different risk types, for example, interest rate, equity and foreign exchange, together in one portfolio. It is

measured as the difference between the sum of the VaR by individual risk type and the combined total VaR. A negative number represents the benefit of

portfolio diversification. As the maximum occurs on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit for

this measure.

2The total VaR is non-additive across risk types due to diversification effect.

Non-trading VaR excludes equity risk on securities held at fair value, non-trading book foreign exchange risk, insurance operations and the risks

arising from long term capital issuance. HSBC's management of market risk in the non-trading book is described on page <u>[25](#i8ab2a707e9934415b43c6e47db159947_7683)</u>.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **28** |

---

Insurance manufacturing operations risk

Insurance manufacturing operations risk profile in the first half of 2025

There have been no material changes to the policies and practices for the management of risks arising in our insurance operations described on

page 89 of the Annual Report and Accounts 2024.

The following table shows the composition of assets and liabilities by contract type.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Balance sheet of insurance manufacturing subsidiaries by type of contract | Balance sheet of insurance manufacturing subsidiaries by type of contract | Balance sheet of insurance manufacturing subsidiaries by type of contract | Balance sheet of insurance manufacturing subsidiaries by type of contract | Balance sheet of insurance manufacturing subsidiaries by type of contract | Balance sheet of insurance manufacturing subsidiaries by type of contract |
|  | **Life direct participating** <br>**and investment DPF** <br>**contracts**<sup>1</sup><br>| **Life**<br>**other**<sup>2</sup><br>| **Other**<br>**contracts**<sup>3</sup><br>| **Shareholder** <br>**assets**<br>**and liabilities**<br>| **Total** |
|  | **£m** | **£m** | **£m** | **£m** | **£m** |
| Financial assets | **4010** | **45** | **1021** | **429** | **5505** |
| – financial assets designated and otherwise mandatorily measured at <br>fair value through profit or loss<br>| **3506** | **30** | **1014** | **363** | **4913** |
| – derivatives | **8** | **—** | **—** | **—** | **8** |
| – financial investments – at amortised cost | **—** | **—** | **—** | **2** | **2** |
| – financial assets at fair value through other comprehensive income | **—** | **—** | **—** | **—** | **—** |
| – other financial assets<sup>4</sup> | **496** | **15** | **7** | **64** | **582** |
| Insurance contract assets | **—** | **45** | **—** | **—** | **45** |
| Reinsurance contract assets | **—** | **132** | **—** | **—** | **132** |
| Other assets and investment properties<sup>5</sup> | **19149** | **1** | **4** | **1257** | **20411** |
| **Total assets at 30 Jun 2025** | **23159** | **223** | **1025** | **1686** | **26093** |
| Liabilities under investment contracts designated at fair value | **—** | **—** | **1074** | **—** | **1074** |
| Insurance contract liabilities | **3452** | **255** | **—** | **—** | **3707** |
| Reinsurance contract liabilities | **—** | **29** | **—** | **—** | **29** |
| Deferred tax | **—** | **—** | **—** | **8** | **8** |
| Other liabilities<sup>5</sup> | **18165** | **31** | **—** | **1891** | **20087** |
| **Total liabilities** | **21617** | **315** | **1074** | **1899** | **24905** |
| Total equity | **—** | **—** | **—** | **1188** | **1188** |
| **Total liabilities and equity at 30 Jun 2025** | **21617** | **315** | **1074** | **3087** | **26093** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Financial assets | 3749 | 48 | 1026 | 421 | 5244 |
| – financial assets designated and otherwise mandatorily measured at <br>fair value through profit or loss<br>| 3223 | 32 | 1018 | 365 | 4638 |
| – derivatives | 5 |  |  |  | 5 |
| – financial investments – at amortised cost |  |  |  | 1 | 1 |
| – financial assets at fair value through other comprehensive income |  |  |  |  |  |
| – other financial assets<sup>4</sup> | 521 | 16 | 8 | 55 | 600 |
| Insurance contract assets |  | 38 |  |  | 38 |
| Reinsurance contract assets |  | 132 |  |  | 132 |
| Other assets and investment properties<sup>5</sup> | 18229 | 1 |  | 1176 | 19406 |
| Total assets at 31 Dec 2024 | 21978 | 219 | 1026 | 1597 | 24820 |
| Liabilities under investment contracts designated at fair value  |  |  | 1078 |  | 1078 |
| Insurance contract liabilities | 3165 | 259 |  |  | 3424 |
| Reinsurance contract liabilities |  | 38 |  |  | 38 |
| Deferred tax |  |  |  | 9 | 9 |
| Other liabilities | 17355 | 32 |  | 1761 | 19148 |
| Total liabilities | 20520 | 329 | 1078 | 1770 | 23697 |
| Total equity |  |  |  | 1123 | 1123 |
| Total liabilities and equity at 31 Dec 2024 | 20520 | 329 | 1078 | 2893 | 24820 |

---

1'Life direct participating and investment DPF' contracts are substantially measured under the variable fee approach measurement model.

2'Life other' mainly includes protection type contracts as well as reinsurance contracts. The reinsurance contracts primarily provide diversification benefits over

the life participating and investment discretionary participation feature ('DPF') contracts.

3'Other contracts' includes investment contracts for which HSBC does not bear significant insurance risk.

4'Other financial assets' comprise mainly loans and advances to banks, cash and inter-company balances with other non-insurance legal entities.

5'Other assets and investment properties' includes £20,338m (31 December 2024: £19,309m) and 'Other liabilities' includes £19,606m (31 December 2024:

£18,668m) in respect of the classification of the French life insurance business to held for sale. Further details are provided on page <u>[48](#iacd8298e657548c194fe64b7dc4c5258_0-1-1-1-7996308)</u>.

Board Changes

Colin Bell resigned from the Board and as Chief Executive Officer of the bank on 31 December 2024. Michael Roberts was appointed to the

Board and as Chief Executive Officer of the bank and Corporate and Institutional Banking, and Ann Godbehere was appointed to the Board as a

non-executive Director, with effect from 1 January 2025.

Deirdre Hannigan joined the Board as a non-executive Director with effect from 1 March 2025.

At the conclusion of the Annual General Meeting held on 24 April 2025, Stephen O'Connor, who served as the Chair of the Board, together

with Yukiko Omura and Norma Dove-Edwin, retired from the Board as non-executive Directors. Ann Godbehere was appointed as Chair of the

Board with effect from 24 April 2025.

Lynne Stuart resigned as interim Company Secretary with effect from 12 June 2025 and Micheal McDermott was appointed as Company

Secretary with effect from 13 June 2025.

---

| | |
|:---|:---|
| **29** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Interim condensed financial statements

Interim condensed financial statements

---

| | |
|:---|:---|
| Contents | Contents |
| **<u>[29](#i8ab2a707e9934415b43c6e47db159947_217)</u>** | Consolidated income statement  |
| **<u>[30](#i8ab2a707e9934415b43c6e47db159947_220)</u>** | Consolidated statement of comprehensive income  |
| **<u>[31](#i8ab2a707e9934415b43c6e47db159947_223)</u>** | Consolidated balance sheet  |
| **<u>[32](#i8ab2a707e9934415b43c6e47db159947_229)</u>** | Consolidated statement of changes in equity  |
| **<u>[35](#i8ab2a707e9934415b43c6e47db159947_226)</u>** | Consolidated statement of cash flows |

---

Consolidated income statement

---

| | | |
|:---|:---|:---|
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **£m** | £m |
| Net interest income | **594** | 658 |
| – interest income | **8224** | 10007 |
| – interest expense | **(7630)** | (9349) |
| Net fee income | **661** | 654 |
| – fee income | **1516** | 1375 |
| – fee expense | **(855)** | (721) |
| Net income from financial instruments held for trading or managed on a fair value basis | **2775** | 2334 |
| Net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit <br>or loss<br>| **316** | 430 |
| Gains less losses from financial investments | **28** | 5 |
| Losses recognised on Assets held for sale | **(42)** | (62) |
| Insurance finance expense | **(362)** | (535) |
| Insurance service result | **70** | 102 |
| – Insurance revenue | **178** | 212 |
| – Insurance service expense | **(108)** | (110) |
| Other operating income/(expense) | **95** | (34) |
| **Net operating income before change in expected credit losses and other credit impairment charges**<sup>1</sup> | **4135** | 3552 |
| Change in expected credit losses and other credit impairment charges | **(75)** | 53 |
| **Net operating income** | **4060** | 3605 |
| **Total operating expenses** | **(2925)** | (2485) |
| – employee compensation and benefits | **(1040)** | (837) |
| – general and administrative expenses | **(1702)** | (1590) |
| – depreciation and impairment of property, plant and equipment and right of use assets | **(62)** | (25) |
| – amortisation and impairment of intangible assets | **(121)** | (33) |
| **Operating profit** | **1135** | 1120 |
| Share of profit in associates and joint ventures | **29** | 16 |
| **Profit before tax** | **1164** | 1136 |
| Tax expense | **(312)** | (405) |
| **Profit for the period** | **852** | 731 |
| Profit attributable to the parent company | **842** | 715 |
| Profit attributable to non-controlling interests | **10** | 16 |

---

1Net operating income before change in expected credit losses and other credit impairment charges is also referred to as revenue.

The accompanying notes on pages <u>[36](#ie80cb75bb11a443d8fc345e3dfc339c3_201814)</u>to<u>[50](#i16de4fa8b5b247c8a7d7d35f8d8637ed_16798)</u>, the 'Summary of financial instruments to which the impairment requirements in IFRS 9 are

applied', 'Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector',

and 'Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan

commitments and financial guarantees' tables in the 'Credit risk' section form an integral part of these condensed financial statements.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **30** |

---

Consolidated statement of comprehensive income

---

| | | |
|:---|:---|:---|
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **£m** | £m |
| Profit for the period | **852** | 731 |
| **Other comprehensive (expense)/income** |  |  |
| **Items that will be reclassified subsequently to profit or loss when specific conditions are met:** |  |  |
| Debt instruments at fair value though other comprehensive income | **(919)** | 26 |
| – fair value (losses)/gains<sup>1</sup> | **(872)** | 43 |
| – fair value (gains) transferred to the income statement on disposal | **(20)** | (7) |
| – expected credit losses recognised in income statement | **—** | 1 |
| – income taxes | **(27)** | (11) |
| Cash flow hedges | **277** | (201) |
| – fair value gains/(losses) | **257** | (418) |
| – fair value losses reclassified to the income statement | **125** | 143 |
| – income taxes | **(105)** | 74 |
| Finance income from insurance contracts | **16** | 13 |
| – before income taxes | **21** | 18 |
| – income taxes | **(5)** | (5) |
| Exchange differences and other | **390** | (193) |
| **Items that will not be reclassified subsequently to profit or loss:** |  |  |
| Remeasurement of defined benefit asset/liability | **21** | 25 |
| – before income taxes | **22** | 31 |
| – income taxes | **(1)** | (6) |
| Equity instruments designated at fair value through other comprehensive income | **3** | 13 |
| – fair value gains | **4** | 15 |
| – income taxes | **(1)** | (2) |
| Changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk | **106** | (30) |
| – before income taxes | **145** | (41) |
| – income taxes | **(39)** | 11 |
| **Other comprehensive expense for the period, net of tax** | **(106)** | (347) |
| **Total comprehensive income for the period** | **746** | 384 |
| Attributable to: |  |  |
| – the parent company | **730** | 371 |
| – non-controlling interests | **16** | 13 |

---

1Amounts in 1H25 includes a £1bn fair value post-tax loss in other comprehensive income on a retained portfolio of home and other loans associated with the sale

of our retail banking operations in France, and reclassified from hold-to-collect to hold-to-collect-and-sell business model, and measured in loans and advances at

fair value through other comprehensive income.

---

| | |
|:---|:---|
| **31** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Interim condensed financial statements

Consolidated balance sheet

---

| | | |
|:---|:---|:---|
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **£m** | £m |
| **Assets** |  |  |
| Cash and balances at central banks  | **96155** | 119184 |
| Trading assets | **114445** | 116042 |
| Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | **9097** | 9417 |
| Derivatives  | **176838** | 198172 |
| Loans and advances to banks | **15803** | 14521 |
| Loans and advances to customers | **78881** | 82666 |
| Reverse repurchase agreements – non-trading  | **68408** | 53612 |
| Financial investments  | **56050** | 52216 |
| Assets held for sale<sup>1</sup> | **28122** | 21606 |
| Prepayments, accrued income and other assets | **74007** | 56950 |
| Current tax assets | **1040** | 1043 |
| Interests in associates and joint ventures | **751** | 703 |
| Goodwill and intangible assets<sup>2</sup> | **259** | 303 |
| Deferred tax assets | **781** | 895 |
| **Total assets** | **720637** | 727330 |
| **Liabilities and equity** |  |  |
| **Liabilities** |  |  |
| Deposits by banks | **34439** | 26515 |
| Customer accounts | **229804** | 242303 |
| Repurchase agreements – non-trading | **36832** | 40384 |
| Trading liabilities | **39542** | 42633 |
| Financial liabilities designated at fair value | **39964** | 37443 |
| Derivatives | **176367** | 197082 |
| Debt securities in issue  | **13882** | 19461 |
| Liabilities of disposal groups held for sale<sup>1</sup> | **33097** | 23110 |
| Accruals, deferred income and other liabilities | **68205** | 50484 |
| Current tax liabilities | **314** | 250 |
| Insurance contract liabilities | **3707** | 3424 |
| Provisions<sup>3</sup> | **375** | 275 |
| Deferred tax liabilities | **5** | 5 |
| Subordinated liabilities | **16297** | 16908 |
| **Total liabilities** | **692830** | 700277 |
| **Equity** |  |  |
| Total shareholders' equity  | **27639** | 26895 |
| – called up share capital | **797** | 797 |
| – share premium account | **3582** | 3582 |
| – other equity instruments | **4108** | 3921 |
| – other reserves | **(6679)** | (6445) |
| – retained earnings | **25831** | 25040 |
| Non-controlling interests  | **168** | 158 |
| **Total equity** | **27807** | 27053 |
| **Total liabilities and equity** | **720637** | 727330 |

---

1Includes businesses classified as held-for-sale as part of a broader restructuring of our European business. Refer to Note 11 'Assets held for sale and liabilities of

disposal groups held for sale' on page <u>[48](#iacd8298e657548c194fe64b7dc4c5258_0-1-1-1-7996308)</u>.

2Refer to Note 7 'Goodwill and intangible assets' on page <u>[45](#i8ab2a707e9934415b43c6e47db159947_277)</u>.

3Refer to Note 8 'Provisions' on page <u>[45](#i8ab2a707e9934415b43c6e47db159947_280)</u>.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **32** |

---

Consolidated statement of changes in equity

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **Other reserves** | **Other reserves** | **Other reserves** | **Other reserves** | **Other reserves** |  |  |  |
|  | **Called up** <br>**share** <br>**capital &** <br>**share** <br>**premium**<br>| **Other**<br>**equity**<br>**instruments**<br>| **Retained**<br>**earnings**<br>| **Financial** <br>**assets at** <br>**FVOCI** <br>**reserve**<br>| **Cash** <br>**flow**<br>**hedging**<br>**reserve**<br>| **Foreign**<br>**exchange**<br>**reserve**<br>| **Group** <br>**reorganisation** <br>**reserve** <br>**('GRR')**<sup>3</sup><br>| **Insurance** <br>**finance** <br>**reserve**<sup>4</sup><br>| **Total**<br>**share-**<br>**holders'**<br>**equity**<br>| **Non-**<br>**controlling** <br>**interests**<br>| **Total**<br>**equity**<br>|
|  | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| **At 1 Jan 2025** | **4379** | **3921** | **25040** | **(692)** | **(227)** | **1686** | **(7692)** | **480** | **26895** | **158** | **27053** |
| Profit for the period | **—** | **—** | **842** | **—** | **—** | **—** | **—** | **—** | **842** | **10** | **852** |
| Other <br>comprehensive <br>(expense)/income <br>(net of tax)<br>| **—** | **—** | **128** | **(958)** | **278** | **406** | **—** | **34** | **(112)** | **6** | **(106)** |
| – debt instruments <br>at fair value <br>through other <br>comprehensive <br>income<br>| **—** | **—** | **—** | **(920)** | **—** | **—** | **—** | **—** | **(920)** | **1** | **(919)** |
| – equity <br>instruments <br>designated at fair <br>value through <br>other <br>comprehensive <br>income<br>| **—** | **—** | **—** | **3** | **—** | **—** | **—** | **—** | **3** | **—** | **3** |
| – cash flow hedges | **—** | **—** | **—** | **—** | **277** | **—** | **—** | **—** | **277** | **—** | **277** |
| – remeasurement <br>of defined benefit <br>asset/liability<br>| **—** | **—** | **21** | **—** | **—** | **—** | **—** | **—** | **21** | **—** | **21** |
| – changes in fair <br>value of financial <br>liabilities <br>designated at fair <br>value due to <br>movement in <br>own credit risk<sup>1</sup><br>| **—** | **—** | **106** | **—** | **—** | **—** | **—** | **—** | **106** | **—** | **106** |
| – foreign exchange <br>reclassified to <br>income <br>statement on <br>disposal of a <br>foreign operation<br>| **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |
| – insurance finance <br>income <br>recognised in <br>other <br>comprehensive <br>income<br>| **—** | **—** | **—** | **—** | **—** | **—** | **—** | **16** | **16** | **—** | **16** |
| – exchange <br>differences<br>| **—** | **—** | **1** | **(41)** | **1** | **406** | **—** | **18** | **385** | **5** | **390** |
| **Total** <br>**comprehensive** <br>**income for the** <br>**period**<br>| **—** | **—** | **970** | **(958)** | **278** | **406** | **—** | **34** | **730** | **16** | **746** |
| Capital securities <br>issued during the <br>period<br>| **—** | **187** | **—** | **—** | **—** | **—** | **—** | **—** | **187** | **—** | **187** |
| Redemption of <br>securities<br>| **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |
| Dividends paid<sup>2</sup> | **—** | **—** | **(167)** | **—** | **—** | **—** | **—** | **—** | **(167)** | **(6)** | **(173)** |
| Net impact of <br>equity-settled <br>share-based <br>payments<br>| **—** | **—** | **(9)** | **—** | **—** | **—** | **—** | **—** | **(9)** | **—** | **(9)** |
| Change in business <br>combinations and <br>other movements<br>| **—** | **—** | **(3)** | **6** | **—** | **—** | **—** | **—** | **3** | **—** | **3** |
| **At 30 Jun 2025** | **4379** | **4108** | **25831** | **(1644)** | **51** | **2092** | **(7692)** | **514** | **27639** | **168** | **27807** |

---

---

| | |
|:---|:---|
| **33** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Interim condensed financial statements

Consolidated statement of changes in equity (continued)

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | Other reserves | Other reserves | Other reserves | Other reserves | Other reserves |  |  |  |
|  | Called up <br>share <br>capital & <br>share <br>premium<br>| Other<br>equity<br>instruments<br>| Retained<br>earnings<br>| Financial <br>assets at <br>FVOCI <br>reserve<br>| Cash <br>flow<br>hedging<br>reserve<br>| Foreign<br>exchange<br>reserve<br>| Group <br>reorganisation <br>reserve <br>('GRR')<sup>3</sup><br>| Insurance <br>finance <br>reserve<sup>4</sup><br>| Total<br>share-<br>holders'<br>equity<br>| Non-<br>controlling <br>interests<br>| Total<br>equity<br>|
|  | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m |
| At 1 Jan 2024 | 1801 | 3930 | 24724 | (868) | (330) | 2178 | (7692) | 616 | 24359 | 146 | 24505 |
| Profit for the period |  |  | 715 |  |  |  |  |  | 715 | 16 | 731 |
| Other <br>comprehensive <br>(expense)/income <br>(net of tax)<br>|  |  | (5) | 62 | (199) | (200) |  | (2) | (344) | (3) | (347) |
| – debt instruments <br>at fair value <br>through other <br>comprehensive <br>income<br>|  |  |  | 25 |  |  |  |  | 25 | 1 | 26 |
| – equity <br>instruments <br>designated at fair <br>value through <br>other <br>comprehensive <br>income<br>|  |  |  | 13 |  |  |  |  | 13 |  | 13 |
| – cash flow <br>hedges<br>|  |  |  |  | (201) |  |  |  | (201) |  | (201) |
| – remeasurement <br>of defined <br>benefit asset/<br>liability<br>|  |  | 25 |  |  |  |  |  | 25 |  | 25 |
| – changes in fair <br>value of financial <br>liabilities <br>designated at fair <br>value due to <br>movement in <br>own credit risk<sup>1</sup><br>|  |  | (30) |  |  |  |  |  | (30) |  | (30) |
| – foreign exchange <br>reclassified to <br>income <br>statement on <br>disposal of a <br>foreign operation<br>|  |  |  |  |  | 85 |  |  | 85 |  | 85 |
| – insurance <br>finance income/<br>(expense) <br>recognised in <br>other <br>comprehensive <br>income<br>|  |  |  |  |  |  |  | 13 | 13 |  | 13 |
| – exchange <br>differences<br>|  |  |  | 24 | 2 | (285) |  | (15) | (274) | (4) | (278) |
| Total <br>comprehensive <br>income/(expense) <br>for the period<br>|  |  | 710 | 62 | (199) | (200) |  | (2) | 371 | 13 | 384 |
| Capital securities <br>issued during the <br>period<sup>5</sup><br>| 1132 |  |  |  |  |  |  |  | 1132 |  | 1132 |
| Dividends paid<sup>2</sup> |  |  | (182) |  |  |  |  |  | (182) | (5) | (187) |
| Net impact of <br>equity-settled <br>share-based <br>payments<br>|  |  | 5 |  |  |  |  |  | 5 |  | 5 |
| Change in business <br>combinations and <br>other movements<br>|  |  | (352) |  |  |  |  |  | (352) |  | (352) |
| At 30 Jun 2024 | 2933 | 3930 | 24905 | (806) | (529) | 1978 | (7692) | 614 | 25333 | 154 | 25487 |

---

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **34** |

---

Consolidated statement of changes in equity (continued)

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | Other reserves | Other reserves | Other reserves | Other reserves | Other reserves |  |  |  |
|  | Called up <br>share <br>capital & <br>share <br>premium<br>| Other<br>equity<br>instruments<br>| Retained<br>earnings<br>| Financial <br>assets at <br>FVOCI <br>reserve<br>| Cash <br>flow<br>hedging<br>reserve<br>| Foreign<br>exchange<br>reserve<br>| Group <br>reorganisation <br>reserve <br>('GRR')<sup>3</sup><br>| Insurance <br>finance <br>reserve<sup>4</sup><br>| Total<br>share-<br>holders'<br>equity<br>| Non-<br>controlling <br>interests<br>| Total<br>equity<br>|
|  | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m |
| At 1 Jul 2024 | 2933 | 3930 | 24905 | (806) | (529) | 1978 | (7692) | 614 | 25333 | 154 | 25487 |
| Profit/ (Loss)for the <br>period<br>|  |  | 538 |  |  |  |  |  | 538 | 14 | 552 |
| Other comprehensive <br>(expense)/income (net <br>of tax)<br>|  |  | (35) | 114 | 302 | (293) |  | (134) | (46) | (3) | (49) |
| – debt instruments at <br>fair value through <br>other comprehensive <br>income<br>|  |  |  | 118 |  |  |  |  | 118 |  | 118 |
| – equity instruments <br>designated at fair <br>value through other <br>comprehensive <br>income<br>|  |  |  | (15) |  |  |  |  | (15) |  | (15) |
| – cash flow hedges |  |  |  |  | 304 |  |  |  | 304 |  | 304 |
| – remeasurement of <br>defined benefit asset/<br>liability<br>|  |  | (27) |  |  |  |  |  | (27) |  | (27) |
| – changes in fair value <br>of financial liabilities <br>designated at fair <br>value due to <br>movement in own <br>credit risk<sup>1</sup><br>|  |  | (10) |  |  |  |  |  | (10) |  | (10) |
| – foreign exchange <br>reclassified to income <br>statement on <br>disposal of a foreign <br>operation<br>|  |  |  |  |  | (36) |  |  | (36) |  | (36) |
| – insurance finance <br>(expense)/income <br>recognised in other <br>comprehensive <br>income<br>|  |  |  |  |  |  |  | (121) | (121) |  | (121) |
| – exchange differences |  |  | 2 | 11 | (2) | (257) |  | (13) | (259) | (3) | (262) |
| Total comprehensive <br>income/(expense) for <br>the period<br>|  |  | 503 | 114 | 302 | (293) |  | (134) | 492 | 11 | 503 |
| Capital securities <br>issued during the <br>period<br>| 1446 | 204 |  |  |  |  |  |  | 1650 |  | 1650 |
| Redemption of <br>securities<br>|  | (213) |  |  |  |  |  |  | (213) |  | (213) |
| Dividends paid<sup>2</sup> |  |  | (353) |  |  |  |  |  | (353) | (6) | (359) |
| Net impact of equity-<br>settled share-based <br>payments<br>|  |  | (11) |  |  |  |  |  | (11) |  | (11) |
| Change in business <br>combinations and other <br>movements<br>|  |  | (4) |  |  | 1 |  |  | (3) | (1) | (4) |
| At 31 Dec 2024 | 4379 | 3921 | 25040 | (692) | (227) | 1686 | (7692) | 480 | 26895 | 158 | 27053 |

---

1The cumulative amount of change in fair value attributable to changes in own credit risk of financial liabilities designated at fair value was a loss of £222m (1H24:

was a gain of £88m and 2H24: loss of £18m).

2The dividends to the parent company includes dividend on ordinary share capital £81m (1H24: £99m and 2H24: £213m), coupon payment on additional tier 1

instrument £86m (1H24: £83m and 2H24: £140m).

3GRR is an accounting reserve resulting from the ring-fencing implementation.

4The insurance finance reserve reflects the impact of the adoption of the other comprehensive income option for our insurance business in France. Underlying

assets supporting these contracts are measured at fair value through other comprehensive income. Under this option, only the amount that matches income or

expenses recognised in profit or loss on underlying items is included in finance income or expenses, resulting in the elimination of income statement accounting

mismatches. The remaining amount of finance income or expenses for these insurance contracts is recognised in other comprehensive income ('OCI').

5CET1 issuance of shares to HSBC Holdings plc equal to £1,132m in respect of funding the acquisition of PBRS in February 2024.

---

| | |
|:---|:---|
| **35** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Interim condensed financial statements

Consolidated statement of cash flows

---

| | | |
|:---|:---|:---|
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **£m** | £m |
| **Profit before tax** | **1164** | 1136 |
| **Adjustments for non-cash items:** |  |  |
| Depreciation, amortisation and impairment | **183** | 58 |
| Net loss from investing activities | **13** | 140 |
| Share of profit in associates and joint ventures | **(29)** | (16) |
| Change in expected credit losses gross of recoveries and other credit impairment charges/ (releases) | **76** | (64) |
| Provisions including pensions | **189** | 8 |
| Share-based payment expense | **41** | 31 |
| Other non-cash items included in profit before tax | **(80)** | (112) |
| Elimination of exchange differences<sup>1</sup> | **(55)** | 2697 |
| Change in operating assets | **(30121)** | (18754) |
| Change in operating liabilities | **13634** | 19534 |
| Contributions paid to defined benefit plans | **(10)** | (9) |
| Tax paid | **(274)** | (796) |
| **Net cash from operating activities** | **(15269)** | 3853 |
| Purchase of financial investments | **(21869)** | (16806) |
| Proceeds from the sale and maturity of financial investments | **17071** | 9958 |
| Net cash flows from the purchase and sale of property, plant and equipment and right-of-use assets  | **(8)** | (5) |
| Net investment in intangible assets | **(64)** | (59) |
| Net cash outflow from investment in associates and from acquisition of businesses and subsidiaries<sup>2</sup> | **(21)** | (953) |
| Net cash flow on disposal of subsidiaries, businesses, associates and joint ventures<sup>3</sup> | **—** | (8616) |
| **Net cash from investing activities** | **(4891)** | (16481) |
| Issue of ordinary share capital and other equity instruments | **187** | 1132 |
| Subordinated loan capital issued | **419** | 2226 |
| Subordinated loan capital repaid | **(1216)** | (786) |
| Dividends to the parent company | **(167)** | (182) |
| Dividend paid to non-controlling interests | **(6)** | (5) |
| **Net cash from financing activities** | **(783)** | 2385 |
| **Net decrease in cash and cash equivalents** | **(20943)** | (10243) |
| Cash and cash equivalents at the beginning of the period | **162928** | 177037 |
| Exchange differences in respect of cash and cash equivalents | **1856** | (2784) |
| **Cash and cash equivalents at the end of the period**<sup>4</sup> | **143841** | 164010 |

---

1Adjustment to bring changes between opening and closing balance sheet amounts to average rates. This is not done on a line-by-line basis, as details cannot be

determined without unreasonable expense.

2Includes £941mof net cash outflow on acquisition of PBRS in February 2024.

3Includes £8.6bof net cash outflow on sale of our retail banking operations in France in January 2024.

4Includes £1.8b (1H24: £83m) of cash and cash equivalents classified as held for sale.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **36** |

---

Notes on the interim condensed

financial statements

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Contents | Contents | Contents | Contents | Contents | Contents |
| **<u>[36](#i8ab2a707e9934415b43c6e47db159947_5070)</u>** | 1 | Basis of preparation and material accounting policies | **<u>[45](#i8ab2a707e9934415b43c6e47db159947_280)</u>** | 8 | Provisions |
| **<u>[37](#i8ab2a707e9934415b43c6e47db159947_235)</u>** | 2 | Dividends | **<u>[46](#i8ab2a707e9934415b43c6e47db159947_286)</u>** | 9 | Contingent liabilities, contractual commitments and guarantees |
| **<u>[37](#i8ab2a707e9934415b43c6e47db159947_244)</u>** | 3 | Segmental analysis | **<u>[46](#i8ab2a707e9934415b43c6e47db159947_289)</u>** | 10 | Legal proceedings and regulatory matters |
| **<u>[39](#i8ab2a707e9934415b43c6e47db159947_247)</u>** | 4 | Net fee income | **<u>[48](#i8ab2a707e9934415b43c6e47db159947_3333)</u>** | 11 | Assets held for sale and liabilities of disposal groups held for sale |
| **<u>[39](#i8ab2a707e9934415b43c6e47db159947_250)</u>** | 5 | Fair values of financial instruments carried at fair value | **<u>[50](#i8ab2a707e9934415b43c6e47db159947_292)</u>** | 12 | Transactions with related parties |
| **<u>[44](#i8ab2a707e9934415b43c6e47db159947_274)</u>** | 6 | Fair values of financial instruments not carried at fair value | **<u>[50](#i8ab2a707e9934415b43c6e47db159947_295)</u>** | 13 | Events after the balance sheet date |
| **<u>[45](#i8ab2a707e9934415b43c6e47db159947_277)</u>** | 7 | Goodwill and Intangible assets | **<u>[50](#i8ab2a707e9934415b43c6e47db159947_298)</u>** | 14 | Interim Report 2025 and statutory accounts |

---

1Basis of preparation and material accounting policies

(a)Compliance with International Financial Reporting Standards

The interim condensed consolidated financial statements of HSBC Bank plc ('the bank') and its subsidiaries (together 'the group') have been

prepared on the basis of the policies set out in the 2024 annual financial statements. They have also been prepared in accordance with IAS 34

'Interim Financial Reporting' as adopted by the UK, IAS 34 'Interim Financial Reporting' as issued by the International Accounting Standards

Board ('IASB'), IAS 34 'Interim Financial Reporting' as adopted by the EU and the Disclosure Guidance and Transparency Rules sourcebook of

the UK's Financial Conduct Authority. Therefore, they include an explanation of events and transactions that are significant to an understanding

of the changes in the group's financial position and performance since the end of 2024.

These interim condensed consolidated financial statements should be read in conjunction with the Annual Report and Accounts 2024 which

was prepared in accordance with UK-adopted international accounting standards in conformity with the requirements of the Companies Act

2006 and international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union.

These financial statements were also prepared in accordance with International Financial Reporting Standards ('IFRS Accounting Standards') as

issued by the IASB, including interpretations issued by the IFRS Interpretations Committee.

At 30 June 2025, there were no IFRS Accounting Standards effective for the half-year to 30 June 2025 affecting these financial statements that

were not approved for adoption in the UK by the UK Endorsement Board. There was no difference between IFRS Accounting Standards

adopted by the UK, IFRS Accounting Standards as adopted by the EU and IFRS Accounting Standards issued by the IASB in terms of their

application to the group.

Standards applied during the half-year to 30 June 2025

There were no new standards or amendments to standards that had a material effect on these interim condensed consolidated financial

statements.

(b)Use of estimates and judgements

Management believes that the critical estimates and judgements applicable to the group are those that relate to impairment of amortised cost

and FVOCI financial assets, the valuation of financial instruments, deferred tax assets, provisions for liabilities and non-current assets held for

sale. Due to increased disposal activities of non-current assets and the related management judgements on meeting the held-for-sale criteria,

this policy has been designated as critical for these interim condensed financial statements.

Apart from the above referred disposal activities, there were no material changes in the current period to any of the critical estimates and

judgements disclosed in 2024, which are stated on pages 127 to 137 of the Annual Report and Accounts 2024.

(c)Composition of the group

There were no material changes in the composition of the group in the half-year to 30 June 2025.

For details of future business disposals see Note 11: 'Assets held for sale and liabilities of disposal groups held for sale'.

(d)Future accounting developments

Amendments to IFRS 9 'Financial Instruments' and IFRS 7 'Financial Instruments: Disclosures'

In May 2024, the IASB issued amendments to IFRS 9 'Financial Instruments' and IFRS 7 'Financial Instruments: Disclosures', effective for

annual reporting periods beginning on or after 1 January 2026. In addition to guidance as to when certain financial liabilities can be deemed

settled when using an electronic payment system, the amendments also provide further clarification regarding the classification of financial

assets that contain contractual terms that change the timing or amount of contractual cash flows, including those arising from ESG related

contingencies, and financial assets with certain non-recourse features. The Group is currently undertaking an assessment of the potential

impact.

---

| | |
|:---|:---|
| **37** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Notes on the interim condensed financial statements

IFRS 18 'Presentation and Disclosure in Financial Statements'

In April 2024, the IASB issued IFRS 18 'Presentation and Disclosure in Financial Statements', effective for annual reporting periods beginning

on or after 1 January 2027. The new accounting standard aims to give users of financial statements more transparent and comparable

information about an entity's financial performance. It will replace IAS 1 'Presentation of Financial Statements' but carries over many

requirements from that IFRS Accounting Standard unchanged. In addition, there are three sets of new requirements relating to the structure of

the income statement, management-defined performance measures and the aggregation and disaggregation of financial information.

While IFRS 18 will not change recognition criteria or measurement bases, it might have a significant impact on presenting information in the

financial statements, in particular the income statement. The group is currently assessing impacts and data readiness.

(e)Going concern

The financial statements are prepared on a going concern basis, as the Directors are satisfied that the group and parent company have the

resources to continue in business for the foreseeable future. In making this assessment, the Directors have considered a wide range of

information relating to present and future conditions, including future projections of profitability, cash flows, capital requirements and capital

resources.

These considerations include stressed scenarios that reflect the uncertainty in the macroeconomic environment, as well as considering

potential impacts from other top and emerging risks, including climate change and the related impacts on profitability, capital and liquidity.

(f)Accounting policies

The accounting policies applied by the group for these interim condensed consolidated financial statements are consistent with those

described on pages 127 to 137 of the Annual Report and Accounts 2024, as are the methods of computation.

(g)Presentation of information

Below disclosure is marked as '(Reviewed)' and is presented in the 'Credit Risk' section on pages <u>[23](#i14b1075f5c494827affb4e86aa0331bf_0-0-1-11-8759141)</u> to <u>[24](#ic562b1b2eab748f5951764e6b3359f9d_0-0-1-4-8765762)</u>, rather than in the notes to the

financial statements:

'Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan

commitments and financial guarantees'.

2Dividends

---

| | | | | |
|:---|:---|:---|:---|:---|
| Dividends to the parent company | Dividends to the parent company | Dividends to the parent company | Dividends to the parent company | Dividends to the parent company |
|  | Half-year to | Half-year to | Half-year to | Half-year to |
|  | **30 Jun 2025** | **30 Jun 2025** | 30 Jun 2024 | 30 Jun 2024 |
|  | **£ per share** | **£m** | £ per share | £m |
| **Dividends paid on ordinary shares** |  |  |  |  |
| In respect of current year: |  |  |  |  |
| – first interim dividend | **0.102** | **81** | 0.124 | 99 |
| **Total** | **0.102** | **81** | 0.124 | 99 |
| Total coupons on capital securities classified as equity |  | **86** |  | 83 |
| **Dividends to parent** |  | **167** |  | 182 |

---

3Segmental analysis

The group's Operating Committee is considered the Chief Operating Decision Maker ('CODM') for the purposes of identifying the group's

reportable segments.

Our operations are closely integrated and, accordingly, the presentation of data includes internal allocations of certain items of income and

expense. These allocations include the costs of certain support services and global functions to the extent that they can be meaningfully

attributed to business segments. While such allocations have been made on a systematic and consistent basis, they necessarily involve a

degree of subjectivity. Costs that are not allocated to business segments are included in Corporate Centre.

Where relevant, income and expense amounts presented include the results of inter-segment funding along with inter-company and inter-

business line transactions. All such transactions are undertaken on arm's length terms. Measurement of segmental assets, liabilities, income

and expenses is in accordance with the group's accounting policies. Shared costs are included in segments on the basis of actual recharges.

The intra-group elimination items for the business segments are presented in Corporate Centre.

The types of products and services from which each reportable segment derives its revenue are discussed in the 'Strategic Report – Business

segments' on page<u>[4](#i8ab2a707e9934415b43c6e47db159947_4760)</u>.

Business segments

Following the Group's organisational announcement in October 2024, effective from 1 January 2025, the group's reporting segments under

IFRS 8 'Operating Segments' comprise two businesses along with Corporate Centre. These replace our previously reported operating

segments up to 31 December 2024.

–'CIB' is formed from the integration of our Commercial Banking business, Global Banking, Market & Securities Services and Global Banking

and Market Others.

–'IWPB' comprises Premier banking, our Private Bank, and our wealth manufacturing businesses of Asset Management and Insurance.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **38** |

---

By operating segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Profit/(loss) before tax  | Profit/(loss) before tax  | Profit/(loss) before tax  | Profit/(loss) before tax  | Profit/(loss) before tax  |
| **Half-year to 30 Jun 2025** |  |  |  |  |
|  | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** |
|  | **£m** | **£m** | **£m** | **£m** |
| **Net operating income before change in expected credit losses and other credit impairment** <br>**charges**<sup>1</sup><br>| **3357** | **699** | **79** | **4135** |
| – of which: net interest income/(expense) | **1546** | **452** | **(1404)** | **594** |
| Change in ECL and other credit impairment charges | **(61)** | **(12)** | **(2)** | **(75)** |
| **Net operating income** | **3296** | **687** | **77** | **4060** |
| Total operating expenses | **(2273)** | **(488)** | **(164)** | **(2925)** |
| **Operating profit/(loss)** | **1023** | **199** | **(87)** | **1135** |
| Share of profit in associates and joint ventures | **—** | **—** | **29** | **29** |
| **Profit/(loss) before tax** | **1023** | **199** | **(58)** | **1164** |
| **Cost efficiency ratio %** | **67.7** | **69.8** | **—** | **70.7** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Half-year to 30 Jun 2024<sup>2</sup> |  |  |  |  |
| Net operating income/(expense) before change in expected credit losses and other credit <br>impairment charges<sup>1</sup><br>| 3068 | 714 | (230) | 3552 |
| – of which: net interest income/(expense) | 1527 | 477 | (1346) | 658 |
| Change in expected credit losses and other credit impairment release/(charges) | 52 | 6 | (5) | 53 |
| Net operating income/(expense) | 3120 | 720 | (235) | 3605 |
| Total operating expenses | (1991) | (410) | (84) | (2485) |
| Operating profit/(loss) | 1129 | 310 | (319) | 1120 |
| Share of profit in associates and joint ventures |  |  | 16 | 16 |
| Profit/(loss) before tax | 1129 | 310 | (303) | 1136 |
| Cost efficiency ratio % | 64.9 | 57.4 |  | 70.0 |

---

1Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.

2Comparative information for the prior year has been re-presented to reflect the group's revised segment structure, which became effective on 1 January 2025.

External net operating income is attributed to countries on the basis of the location of the branch responsible for reporting the results or

advancing the funds:

---

| | | |
|:---|:---|:---|
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **£m** | £m |
| **External net operating income by country**<sup>1</sup> | **4135** | 3552 |
| – United Kingdom | **2140** | 1758 |
| – France | **762** | 554 |
| – Germany | **440** | 438 |
| – Other countries | **793** | 802 |

---

1Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Balance sheet by business | Balance sheet by business | Balance sheet by business | Balance sheet by business | Balance sheet by business |
|  | **CIB** | **IWPB** | **Corporate** <br>**Centre**<br>| **Total** |
|  | **£m** | **£m** | **£m** | **£m** |
| **30 Jun 2025** |  |  |  |  |
| Loans and advances to customers | **62389** | **16447** | **45** | **78881** |
| Customer accounts | **188422** | **41345** | **37** | **229804** |
| 31 Dec 2024 | 31 Dec 2024 | 31 Dec 2024 | 31 Dec 2024 | 31 Dec 2024 |
| Loans and advances to customers<sup>1</sup> | 60788 | 16293 | 5585 | 82666 |
| Customer accounts<sup>1</sup> | 201418 | 40852 | 33 | 242303 |

---

1Comparative information for the prior year has been represented to reflect the group's revised segment structure, which became effective on 1 January 2025.

---

| | |
|:---|:---|
| **39** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Notes on the interim condensed financial statements

4Net fee income

---

| | | |
|:---|:---|:---|
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **£m** | £m |
| **Net fee income by product** |  |  |
| Funds under management | **262** | 234 |
| Broking income | **198** | 208 |
| Underwriting | **176** | 147 |
| Account services | **168** | 166 |
| Credit facilities | **151** | 148 |
| Global custody | **94** | 85 |
| Remittances | **61** | 52 |
| Corporate finance | **51** | 33 |
| Securities others – (including stock lending) | **45** | 52 |
| Loans granted other than prepayment fees | **36** | 29 |
| Other | **274** | 221 |
| **Fee income** | **1516** | 1375 |
| Less: fee expense | **(855)** | (721) |
| **Net fee income** | **661** | 654 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Net fee income by business segment | Net fee income by business segment | Net fee income by business segment | Net fee income by business segment | Net fee income by business segment |
|  | **CIB** | **IWPB** | **Corporate** <br>**Centre**<br>| **Total** |
|  | **£m** | **£m** | **£m** | **£m** |
| **Half-year to 30 Jun 2025** |  |  |  |  |
| **Fee income** | **1514** | **296** | **(294)** | **1516** |
| Less: fee expense | **(1074)** | **(75)** | **294** | **(855)** |
| **Net fee (expense)/income** | **440** | **221** | **—** | **661** |
| Half-year to 30 Jun 2024<sup>1</sup> |  |  |  |  |
| Fee income | 1416 | 279 | (320) | 1375 |
| Less: fee expense | (960) | (75) | 314 | (721) |
| Net fee (expense)/income | 456 | 204 | (6) | 654 |

---

1Comparative information for the prior year has been represented to reflect the group's revised segment structure, which became effective on 1 January 2025.

5Fair values of financial instruments carried at fair value

The accounting policies, control framework, and the hierarchy used to determine fair values are consistent with those applied for the Annual

Report and Accounts 2024*.*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Financial instruments carried at fair value and bases of valuation | Financial instruments carried at fair value and bases of valuation | Financial instruments carried at fair value and bases of valuation | Financial instruments carried at fair value and bases of valuation | Financial instruments carried at fair value and bases of valuation | Financial instruments carried at fair value and bases of valuation | Financial instruments carried at fair value and bases of valuation | Financial instruments carried at fair value and bases of valuation | Financial instruments carried at fair value and bases of valuation |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Quoted** <br>**market** <br>**price** <br>**Level 1**<br>| **Using** <br>**observable** <br>**inputs**<br>**Level 2**<br>| **With significant** <br>**unobservable** <br>**inputs**<br>**Level 3**<br>| **Total** | Quoted <br>market <br>price <br>Level 1<br>| Using <br>observable <br>inputs<br>Level 2<br>| With significant <br>unobservable <br>inputs<br>Level 3<br>| Total |
|  | **£m** | **£m** | **£m** | **£m** | £m | £m | £m | £m |
| **Recurring fair value measurements** |  |  |  |  |  |  |  |  |
| **Assets** |  |  |  |  |  |  |  |  |
| Trading assets | **84862** | **27048** | **2535** | **114445** | 87915 | 24557 | 3570 | 116042 |
| Financial assets designated and otherwise <br>mandatorily measured at fair value through profit <br>or loss<br>| **4904** | **3088** | **1105** | **9097** | 4615 | 3720 | 1082 | 9417 |
| Derivatives | **832** | **173737** | **2269** | **176838** | 1219 | 195071 | 1882 | 198172 |
| Financial investments | **32713** | **8202** | **182** | **41097** | 31769 | 7142 | 1079 | 39990 |
| **Liabilities** |  |  |  |  |  |  |  |  |
| Trading liabilities | **25862** | **13646** | **34** | **39542** | 24713 | 17296 | 624 | 42633 |
| Financial liabilities designated at fair value | **1074** | **35852** | **3038** | **39964** | 1078 | 33403 | 2962 | 37443 |
| Derivatives | **1443** | **172149** | **2775** | **176367** | 745 | 193982 | 2355 | 197082 |

---

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **40** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Financial instruments carried at fair value and bases of valuation – assets and liabilities held for sale | Financial instruments carried at fair value and bases of valuation – assets and liabilities held for sale | Financial instruments carried at fair value and bases of valuation – assets and liabilities held for sale | Financial instruments carried at fair value and bases of valuation – assets and liabilities held for sale | Financial instruments carried at fair value and bases of valuation – assets and liabilities held for sale | Financial instruments carried at fair value and bases of valuation – assets and liabilities held for sale | Financial instruments carried at fair value and bases of valuation – assets and liabilities held for sale | Financial instruments carried at fair value and bases of valuation – assets and liabilities held for sale | Financial instruments carried at fair value and bases of valuation – assets and liabilities held for sale |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** | Level 1 | Level 2 | Level 3 | Total |
|  | **£m** | **£m** | **£m** | **£m** | £m | £m | £m | £m |
| **Recurring fair value measurements** |  |  |  |  |  |  |  |  |
| **Assets** |  |  |  |  |  |  |  |  |
| Trading assets | **—** | **—** | **—** | **—** |  |  |  |  |
| Financial assets designated and otherwise mandatorily <br>measured at fair value through profit or loss<br>| **2234** | **8209** | **1946** | **12389** | 2365 | 7189 | 2053 | 11607 |
| Derivatives | **—** | **37** | **—** | **37** |  | 29 |  | 29 |
| Financial investments | **2331** | **8870** | **373** | **11574** | 2113 | 4261 | 402 | 6776 |
| **Liabilities** |  |  |  |  |  |  |  |  |
| Trading liabilities | **—** | **—** | **—** | **—** |  |  |  |  |
| Financial liabilities designated at fair value | **—** | **10** | **—** | **10** |  | 104 |  | 104 |
| Derivatives | **—** | **9** | **—** | **9** |  | 15 |  | 15 |

---

---

| | | |
|:---|:---|:---|
| Fair value adjustments | Fair value adjustments | Fair value adjustments |
|  | **At 30 Jun 2025** | At 31 Dec 2024 |
|  | **£m** | £m |
| **Type of adjustment** |  |  |
| Risk-related | **292** | 350 |
| – bid-offer | **157** | 153 |
| – uncertainty | **61** | 58 |
| – credit valuation adjustment | **52** | 74 |
| – debit valuation adjustment | **(8)** | (9) |
| – funding fair value adjustment | **30** | 74 |
| – other | **—** |  |
| Model-related | **36** | 29 |
| – model limitation | **36** | 29 |
| – other | **—** |  |
| Inception profit (Day 1 P&L reserves) | **65** | 58 |
|  | **393** | 437 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Transfers between Level 1 and Level 2 fair values | Transfers between Level 1 and Level 2 fair values | Transfers between Level 1 and Level 2 fair values | Transfers between Level 1 and Level 2 fair values | Transfers between Level 1 and Level 2 fair values | Transfers between Level 1 and Level 2 fair values | Transfers between Level 1 and Level 2 fair values | Transfers between Level 1 and Level 2 fair values |
|  | **Assets** | **Assets** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Liabilities** |
|  | **Financial** <br>**investments**<br>| **Trading** <br>**assets**<br>| **Designated and otherwise** <br>**mandatorily measured at fair** <br>**value through profit or loss**<br>| **Derivatives** | **Trading** <br>**liabilities**<br>| **Designated** <br>**at fair value**<br>| **Derivatives** |
|  | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| **At 30 Jun 2025** |  |  |  |  |  |  |  |
| Transfers from Level 1 to Level 2 | **—** | **217** | **—** | **—** | **61** | **—** | **—** |
| Transfers from Level 2 to Level 1 | **—** | **352** | **—** | **—** | **109** | **—** | **—** |
| Full year to 31 Dec 2024 |  |  |  |  |  |  |  |
| Transfers from Level 1 to Level 2 | 10 | 320 |  |  | 84 |  |  |
| Transfers from Level 2 to Level 1 | 30 | 577 |  |  | 54 |  |  |

---

Transfers between levels of the fair value hierarchy are deemed to occur at the end of each quarterly reporting period. Transfers are primarily

attributable to changes in price transparency and in the assessment of observability.

Fair value valuation bases

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 | Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 | Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 | Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 | Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 | Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 | Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 | Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 | Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 | Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 |
|  | **Assets** | **Assets** | **Assets** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Liabilities** | **Liabilities** |
|  | **Financial** <br>**investments**<br>| **Held for** <br>**trading**<br>| **Designated and otherwise** <br>**mandatorily measured at fair** <br>**value through profit or loss**<br>| **Derivatives** | **Total** | **Held for** <br>**trading**<br>| **Designated** <br>**at fair value**<br>| **Derivatives** | **Total** |
|  | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| Private equity including <br>strategic investments<br>| **114** | **1** | **1091** | **—** | **1206** | **—** | **1** | **—** | **1** |
| Asset-backed securities | **50** | **119** | **—** | **—** | **169** | **—** | **—** | **—** | **—** |
| Structured notes | **—** | **—** | **—** | **—** | **—** | **—** | **3036** | **—** | **3036** |
| Derivatives | **—** | **—** | **—** | **2269** | **2269** | **—** | **—** | **2775** | **2775** |
| Other portfolios | **18** | **2415** | **14** | **—** | **2447** | **34** | **1** | **—** | **35** |
| **At 30 Jun 2025** | **182** | **2535** | **1105** | **2269** | **6091** | **34** | **3038** | **2775** | **5847** |
| Private equity including <br>strategic investments<br>| 108 | 1 | 1069 |  | 1178 |  | 1 |  | 1 |
| Asset-backed securities | 68 | 145 |  |  | 213 |  |  |  |  |
| Structured notes |  |  |  |  |  |  | 2958 |  | 2958 |
| Derivatives |  |  |  | 1882 | 1882 |  |  | 2355 | 2355 |
| Other portfolios | 903 | 3424 | 13 |  | 4340 | 624 | 3 |  | 627 |
| At 31 Dec 2024 | 1079 | 3570 | 1082 | 1882 | 7613 | 624 | 2962 | 2355 | 5941 |

---

The basis for determining the fair value of the financial instruments in the table above is explained on page 159 of the Annual Report and

Accounts 2024.

---

| | |
|:---|:---|
| **41** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Notes on the interim condensed financial statements

Reconciliation of fair value measurements in Level 3 of the fair value hierarchy

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Movement in Level 3 financial instruments | Movement in Level 3 financial instruments | Movement in Level 3 financial instruments | Movement in Level 3 financial instruments | Movement in Level 3 financial instruments | Movement in Level 3 financial instruments | Movement in Level 3 financial instruments | Movement in Level 3 financial instruments |
|  | **Assets** | **Assets** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Liabilities** |
|  | **Financial** <br>**investments**<br>| **Trading** <br>**assets**<br>| **Designated and** <br>**otherwise mandatorily** <br>**measured at fair value** <br>**through profit or loss**<br>| **Derivatives** | **Trading** <br>**liabilities**<br>| **Designated** <br>**at fair value**<br>| **Derivatives** |
|  | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| **At 1 Jan 2025** | **1079** | **3570** | **1082** | **1882** | **624** | **2962** | **2355** |
| Total gains/(losses) on assets and total (gains)/losses <br>on liabilities recognised in profit or loss<br>| **(2)** | **(33)** | **29** | **737** | **(15)** | **(61)** | **702** |
| – net income from financial instruments held for <br>trading or managed on a fair value basis<br>| **—** | **(33)** | **—** | **737** | **(15)** | **(61)** | **702** |
| – net income from assets and liabilities of insurance <br>businesses, including related derivatives, measured <br>at fair value through profit or loss<br>| **—** | **—** | **—** | **—** | **—** | **—** | **—** |
| – changes in fair value of other financial instruments <br>mandatorily measured at fair value through profit or <br>loss<br>| **—** | **—** | **29** | **—** | **—** | **—** | **—** |
| – gains from financial investments at fair value <br>through other comprehensive income<br>| **(2)** | **—** | **—** | **—** | **—** | **—** | **—** |
| Total losses recognised in other comprehensive <br>income <br>| **49** | **(49)** | **(43)** | **6** | **—** | **41** | **5** |
| – financial investments: fair value gains | **14** | **—** | **—** | **—** | **—** | **—** | **—** |
| – exchange differences | **35** | **(49)** | **(43)** | **6** | **—** | **41** | **5** |
| Purchases  | **83** | **1322** | **67** | **—** | **46** | **—** | **—** |
| New issuances | **—** | **—** | **—** | **—** | **—** | **1617** | **—** |
| Sales  | **(37)** | **(964)** | **(2)** | **—** | **(9)** | **—** | **—** |
| Settlements  | **(21)** | **(861)** | **(28)** | **(450)** | **(251)** | **(849)** | **(288)** |
| Transfers out<sup>1</sup> | **(969)** | **(760)** | **(7)** | **(234)** | **(372)** | **(845)** | **(362)** |
| Transfers in | **—** | **310** | **7** | **328** | **11** | **173** | **363** |
| **At 30 Jun 2025** | **182** | **2535** | **1105** | **2269** | **34** | **3038** | **2775** |
| Unrealised (losses)/gains recognised in profit or loss <br>relating to assets and liabilities held at 30 Jun 2025<br>| **—** | **10** | **8** | **700** | **22** | **(98)** | **(1011)** |
| – trading (expense)/income excluding net interest <br>income<br>| **—** | **10** | **—** | **700** | **22** | **—** | **(1011)** |
| – net income/(expense) from other financial <br>instruments designated at fair value<br>| **—** | **—** | **—** | **—** | **—** | **—** | **—** |
| – changes in fair value of other financial instruments <br>mandatorily measured at fair value through profit or <br>loss<br>| **—** | **—** | **8** | **—** | **—** | **(98)** | **—** |
| At 1 Jan 2024 | 907 | 2050 | 2882 | 1823 | 252 | 3958 | 2335 |
| Total gains/(losses) on assets and total (gains)/losses <br>on liabilities recognised in profit or loss<br>| 1 | 213 | (20) | 357 | 210 | (1819) | 570 |
| – net income from financial instruments held for <br>trading or managed on a fair value basis<br>|  | 213 |  | 357 | 210 |  | 570 |
| – net income from assets and liabilities of insurance <br>businesses, including related derivatives, measured <br>at fair value through profit or loss<br>|  |  | (44) |  |  |  |  |
| – changes in fair value of other financial instruments <br>mandatorily measured at fair value through profit or <br>loss<br>|  |  | 24 |  |  | (1819) |  |
| – gains from financial investments at fair value <br>through other comprehensive income<br>| 1 |  |  |  |  |  |  |
| Total losses recognised in other comprehensive <br>income <br>| (17) | (5) | (46) | (2) |  | (35) | (3) |
| – financial investments: fair value gains |  |  |  |  |  |  |  |
| – exchange differences | (17) | (5) | (46) | (2) |  | (35) | (3) |
| Purchases  | 114 | 554 | 229 |  | 107 |  |  |
| New issuances |  |  |  |  |  | 1686 |  |
| Sales  | (20) | (470) | (108) |  | (232) |  |  |
| Settlements  | (185) | (286) | 279 | 85 | (298) | 352 | (88) |
| Transfers out<sup>1</sup> | (46) | (196) | (6) | (162) | (28) | (585) | (265) |
| Transfers in | 34 | 242 | 4 | 395 | 91 | 289 | 407 |
| At 30 Jun 2024 | 788 | 2102 | 3214 | 2496 | 102 | 3846 | 2956 |

---

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **42** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Movement in Level 3 financial instruments (continued) | Movement in Level 3 financial instruments (continued) | Movement in Level 3 financial instruments (continued) | Movement in Level 3 financial instruments (continued) | Movement in Level 3 financial instruments (continued) | Movement in Level 3 financial instruments (continued) | Movement in Level 3 financial instruments (continued) | Movement in Level 3 financial instruments (continued) |
|  | Assets | Assets | Assets | Assets | Liabilities | Liabilities | Liabilities |
|  | Financial <br>investments<br>| Trading <br>assets<br>| Designated and<br>otherwise mandatorily <br>measured at fair value <br>through profit or loss<br>| Derivatives | Trading <br>liabilities<br>| Designated <br>at fair value<br>| Derivatives |
|  | £m | £m | £m | £m | £m | £m | £m |
| Unrealised gains/(losses) recognised in profit or loss <br>relating to assets and liabilities held at 30 Jun 2024<br>|  | (6) | (27) | (2088) | 4 | (140) | (204) |
| – trading (expense)/income excluding net interest <br>income<br>|  | (6) |  | (2088) | 4 |  | (204) |
| – net income/(losses) from financial instruments held <br>for trading or managed on a fair value basis<br>|  |  |  |  |  |  |  |
| – changes in fair value of other financial instruments <br>mandatorily measured at fair value through profit or <br>loss<br>|  |  | (27) |  |  | (140) |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| At 1 Jul 2024 | 788 | 2102 | 3214 | 2496 | 102 | 3846 | 2956 |
| Total gains/(losses) on assets and total (gains)/losses <br>on liabilities recognised in profit or loss<br>| (1) | (31) | 33 | 410 | 16 | 1 | 84 |
| – net income from financial instruments held for <br>trading or managed on a fair value basis<br>|  | (31) |  | 410 | 16 | (1818) | 84 |
| – net income/(expense) from assets and liabilities of <br>insurance businesses, including related derivatives, <br>measured at fair value through profit or loss<br>|  |  | 9 |  |  |  |  |
| – changes in fair value of other financial instruments <br>mandatorily measured at fair value through profit or <br>loss<br>|  |  | 24 |  |  | 1819 |  |
| – gains from financial investments at fair value <br>through other comprehensive income<br>| (1) |  |  |  |  |  |  |
| Total losses recognised in other comprehensive <br>income <br>| (8) | 8 | (38) | (2) |  | (29) | 2 |
| – financial investments: fair value gains | 7 |  |  |  |  |  |  |
| – exchange differences | (15) | 8 | (38) | (2) |  | (29) | 2 |
| Purchases  | 913 | 1934 | 218 |  | 616 |  |  |
| New issuances |  |  |  |  |  | 991 |  |
| Sales  | (52) | (579) | (301) |  | (2) |  |  |
| Settlements  | (403) | (49) | (2064) | (695) | (108) | (954) | (242) |
| Transfers out<sup>1</sup> | (158) | (81) | (11) | (521) | (1) | (1587) | (810) |
| Transfers in |  | 266 | 31 | 194 | 1 | 694 | 365 |
| At 31 Dec 2024 | 1079 | 3570 | 1082 | 1882 | 624 | 2962 | 2355 |
| Unrealised gains/(losses) recognised in profit or loss <br>relating to assets and liabilities held 31 Dec 2024<br>|  | (33) | 50 | 540 | (9) | 52 | (418) |
| – trading (expense)/income excluding net interest <br>income<br>|  | (33) |  | 540 | (9) |  | (418) |
| – net income/(losses) from financial instruments held <br>for trading or managed on a fair value basis<br>|  |  | 23 |  |  | (88) |  |
| – changes in fair value of other financial instruments <br>mandatorily measured at fair value through profit or <br>loss<br>|  |  | 27 |  |  | 140 |  |

---

1Financial investments assets include £0.9bn of transfers out relating to enhancement of observability assessments on commercial paper.

Transfers between levels of the fair value hierarchy are deemed to occur at the end of each quarterly reporting period. Transfers are primarily

attributable to changes in price transparency and in the assessment of observability.

---

| | |
|:---|:---|
| **43** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Notes on the interim condensed financial statements

Effect of changes in significant unobservable assumptions to reasonably

possible alternatives

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Sensitivity of Level 3 fair values to reasonably possible alternative assumptions | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions |
|  | At | At | At | At | At | At | At | At |
|  | **30 Jun 2025** | **30 Jun 2025** | **30 Jun 2025** | **30 Jun 2025** | 31 Dec 2024 | 31 Dec 2024 | 31 Dec 2024 | 31 Dec 2024 |
|  | **Reflected in**<br>**profit or loss** | **Reflected in**<br>**profit or loss** | **Reflected in**<br> **OCI** | **Reflected in**<br> **OCI** | Reflected in<br>profit or loss | Reflected in<br>profit or loss | Reflected in<br> OCI | Reflected in<br> OCI |
|  | **Favourable**<br>**changes**<br>| **Unfavourable**<br>**changes**<br>| **Favourable**<br>**changes**<br>| **Unfavourable**<br>**changes**<br>| Favourable<br>changes<br>| Unfavourable<br>changes<br>| Favourable<br>changes<br>| Unfavourable<br>changes<br>|
|  | **£m** | **£m** | **£m** | **£m** | £m | £m | £m | £m |
| Derivatives, trading assets and <br>trading liabilities<sup>1</sup><br>| **381** | **(177)** | **—** | **—** | 348 | (197) |  |  |
| Designated and otherwise <br>mandatorily measured at fair value <br>through profit or loss<br>| **422** | **(165)** | **—** | **—** | 319 | (115) |  |  |
| Financial investments | **14** | **(14)** | **11** | **(14)** | 17 | (16) | 13 | (15) |
| **Total** | **817** | **(356)** | **11** | **(14)** | 684 | (328) | 13 | (15) |

---

1Derivatives, trading assets and trading liabilities are presented as one category to reflect the manner in which these instruments are risk managed.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Sensitivity of Level 3 fair values to reasonably possible alternative assumptions by instrument type | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions by instrument type | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions by instrument type | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions by instrument type | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions by instrument type | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions by instrument type | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions by instrument type | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions by instrument type | Sensitivity of Level 3 fair values to reasonably possible alternative assumptions by instrument type |
|  | At | At | At | At | At | At | At | At |
|  | **30 Jun 2025** | **30 Jun 2025** | **30 Jun 2025** | **30 Jun 2025** | 31 Dec 2024 | 31 Dec 2024 | 31 Dec 2024 | 31 Dec 2024 |
|  | **Reflected in**<br>**profit or loss** | **Reflected in**<br>**profit or loss** | **Reflected in OCI** | **Reflected in OCI** | Reflected in<br>profit or loss | Reflected in<br>profit or loss | Reflected in OCI | Reflected in OCI |
|  | **Favourable** <br>**changes**<br>| **Unfavourable** <br>**changes**<br>| **Favourable** <br>**changes**<br>| **Unfavourable** <br>**changes**<br>| Favourable<br>changes<br>| Unfavourable <br>changes<br>| Favourable<br>changes<br>| Unfavourable <br>changes<br>|
|  | **£m** | **£m** | **£m** | **£m** | £m | £m | £m | £m |
| Private equity including strategic <br>investments <br>| **414** | **(157)** | **11** | **(11)** | 310 | (106) | 10 | (10) |
| Asset-backed securities  | **30** | **(24)** | **—** | **(1)** | 37 | (27) | 1 | (1) |
| Structured notes  | **8** | **(8)** | **—** | **—** | 9 | (9) |  |  |
| Derivatives  | **171** | **(107)** | **—** | **—** | 143 | (104) |  |  |
| Other portfolios  | **194** | **(60)** | **—** | **(2)** | 185 | (82) | 2 | (4) |
| **Total** | **817** | **(356)** | **11** | **(14)** | 684 | (328) | 13 | (15) |

---

The sensitivity analysis aims to measure a range of fair values consistent with the application of a 95% confidence interval. Methodologies take

account of the nature of the valuation technique employed, as well as the availability and reliability of observable proxy and historical data.

When the fair value of a financial instrument is affected by more than one unobservable assumption, the above table reflects the most

favourable or the most unfavourable change from varying the assumptions individually.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **44** |

---

Key unobservable inputs to Level 3 financial instruments

The following table lists key unobservable inputs to Level 3 financial instruments and provides the range of those inputs at 30 June 2025. There

has been no change to the key unobservable inputs to Level 3 financial instruments and inter-relationships therein, which are detailed on pages

163 and 164 of the Annual Report and Accounts 2024.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Quantitative information about significant unobservable inputs in Level 3 valuations  | Quantitative information about significant unobservable inputs in Level 3 valuations  | Quantitative information about significant unobservable inputs in Level 3 valuations  | Quantitative information about significant unobservable inputs in Level 3 valuations  | Quantitative information about significant unobservable inputs in Level 3 valuations  | Quantitative information about significant unobservable inputs in Level 3 valuations  | Quantitative information about significant unobservable inputs in Level 3 valuations  | Quantitative information about significant unobservable inputs in Level 3 valuations  | Quantitative information about significant unobservable inputs in Level 3 valuations  |
|  | At | At | At | At | At | At | At | At |
|  | **30 Jun 2025** | **30 Jun 2025** | **30 Jun 2025** | **30 Jun 2025** | **30 Jun 2025** | **30 Jun 2025** | 31 Dec 2024 | 31 Dec 2024 |
|  | **Fair value** | **Fair value** | **Valuation**<br>**techniques** | **Key unobservable**<br>**inputs** | **Full range of** <br>**inputs** | **Full range of** <br>**inputs** | Full range of <br>inputs | Full range of <br>inputs |
|  | **Assets** | **Liabilities** | **Valuation**<br>**techniques** | **Key unobservable**<br>**inputs** | **Full range of** <br>**inputs** | **Full range of** <br>**inputs** | Full range of <br>inputs | Full range of <br>inputs |
|  | **£m** | **£m** |  |  | **Lower** | **Higher** | Lower | Higher |
| Private equity including strategic <br>investments<sup>1</sup><br>| **1206** | **1** | **Price - Net asset value** | **Current Value/Cost** | **0** | **9** | 0 | 9 |
| Asset-backed securities ('ABS') | **169** | **—** |  |  |  |  |  |  |
| – collateralised loan/debt <br>obligation<br>| **70** | **—** | **Market proxy** | **Price** | **0** | **100** | 0 | 97 |
| – other ABSs  | **99** | **—** | **Market proxy** | **Price** | **0** | **255** | 0 | 248 |
| Structured notes  | **—** | **3036** |  |  |  |  |  |  |
| – equity-linked notes  | **—** | **2582** | **Model-Option model** | **Equity volatility** | **6%** | **57%** | 9% | 49% |
| – equity-linked notes  |  |  | **Model-Option model** | **Equity correlation** | **21%** | **100%** | 15% | 100% |
| – FX-linked notes  | **—** | **49** | **Model-Option model** | **FX volatility** | **5%** | **11%** | 3% | 17% |
| – other  | **—** | **405** |  |  |  |  |  |  |
| Derivatives | **2269** | **2775** |  |  |  |  |  |  |
| Interest rate derivatives: | **750** | **814** |  |  |  |  |  |  |
| – securitisation swaps  | **104** | **237** | **Model-Discounted cash flow** | **Constant Prepayment rate** | **5%** | **10%** | 5% | 10% |
| – long-dated swaptions  | **65** | **66** | **Model-Option model** | **IR volatility** | **9%** | **21%** | 9% | 21% |
| – other  | **581** | **511** |  |  |  |  |  |  |
| FX derivatives: | **403** | **360** |  |  |  |  |  |  |
| – FX options  | **258** | **224** | **Model-Option model** | **FX volatility** | **1%** | **18%** | 1% | 26% |
| – FX other | **145** | **136** |  |  |  |  |  |  |
| Equity derivatives: | **919** | **1128** |  |  |  |  |  |  |
| – long-dated single stock <br>options<br>| **306** | **333** | **Model-Option model** | **Equity volatility** | **7%** | **119%** | 7% | 66% |
| – other  | **613** | **795** |  |  |  |  |  |  |
| Credit derivatives | **180** | **470** |  |  |  |  |  |  |
| – total return swaps | **155** | **385** | **Market proxy** | **Price** | **73** | **106** | 0 | 104 |
| – other credit derivatives | **25** | **85** |  |  |  |  |  |  |
| Other | **17** | **3** |  |  |  |  |  |  |
| Other portfolios: | **2447** | **35** |  |  |  |  |  |  |
| – bonds | **1544** | **28** | **Market proxy** | **Price** | **0** | **106** | 0 | 105 |
| – repurchase agreements | **263** | **—** | **Model-Discounted cash flow** | **IR Curve** | **0%** | **3%** | 0% | 26% |
| – loans & deposit | **501** | **—** | **Market proxy** | **Price** | **0** | **102** |  |  |
| – other  | **139** | **7** |  |  |  |  |  |  |
| **At 30 Jun** | **6091** | **5847** |  |  |  |  |  |  |

---

1Private equity including strategic investments' includes private equity, private credit, private equity funds and infrastructure debt, primarily held as part of our

Insurance business and for strategic investments.

6Fair values of financial instruments not carried at fair value

The bases for measuring the fair values of loans and advances to banks and customers, financial investments, deposits by banks, customer

accounts, debt securities in issue, subordinated liabilities, non-trading repurchase and reverse repurchase agreements are explained on pages

165 and 166 of the Annual Report and Accounts 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Fair values of financial instruments not carried at fair value on the balance sheet | Fair values of financial instruments not carried at fair value on the balance sheet | Fair values of financial instruments not carried at fair value on the balance sheet | Fair values of financial instruments not carried at fair value on the balance sheet | Fair values of financial instruments not carried at fair value on the balance sheet |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Carrying** <br>**amount**<br>| **Fair value** | Carrying <br>amount<br>| Fair value |
|  | **£m** | **£m** | £m | £m |
| **Assets** |  |  |  |  |
| Loans and advances to banks  | **15803** | **15805** | 14521 | 14523 |
| Loans and advances to customers  | **78881** | **78878** | 82666 | 81752 |
| Reverse repurchase agreements – non-trading  | **68408** | **68410** | 53612 | 53614 |
| Financial investments – at amortised cost | **14953** | **15063** | 12226 | 12176 |
| **Liabilities** |  |  |  |  |
| Deposits by banks  | **34439** | **34440** | 26515 | 26518 |
| Customer accounts  | **229804** | **229817** | 242303 | 242320 |
| Repurchase agreements – non-trading  | **36832** | **36832** | 40384 | 40385 |
| Debt securities in issue  | **13882** | **13893** | 19461 | 19472 |
| Subordinated liabilities  | **16297** | **16803** | 16908 | 17267 |

---

---

| | |
|:---|:---|
| **45** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Notes on the interim condensed financial statements

---

| | | | | |
|:---|:---|:---|:---|:---|
| Fair values of financial instruments not carried at fair value and bases of valuation – assets and disposal groups held for sale | Fair values of financial instruments not carried at fair value and bases of valuation – assets and disposal groups held for sale | Fair values of financial instruments not carried at fair value and bases of valuation – assets and disposal groups held for sale | Fair values of financial instruments not carried at fair value and bases of valuation – assets and disposal groups held for sale | Fair values of financial instruments not carried at fair value and bases of valuation – assets and disposal groups held for sale |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Carrying** <br>**amount**<br>| **Fair value** | Carrying <br>amount<br>| Fair value |
|  | **£m** | **£m** | £m | £m |
| **Assets** |  |  |  |  |
| Loans and advances to banks | **124** | **124** | 115 | 115 |
| Loans and advances to customers | **1448** | **1448** | 769 | 771 |
| Reverse repurchase agreements – non-trading | **—** | **—** |  |  |
| Financial investments – at amortised cost | **—** | **—** |  |  |
| **Liabilities** |  |  |  |  |
| Deposits by banks | **75** | **75** |  |  |
| Customer accounts | **13332** | **13332** | 4288 | 4288 |
| Repurchase agreements – non-trading | **—** | **—** |  |  |
| Debt securities in issue | **—** | **—** |  |  |
| Subordinated liabilities | **—** | **—** |  |  |

---

Other financial instruments not carried at fair value are typically short term in nature and reprice to current market rates frequently. Accordingly,

their carrying amount is a reasonable approximation of fair value.

---

| | |
|:---|:---|
| 7 | Goodwill and intangible assets |

---

---

| | | |
|:---|:---|:---|
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **£m** | £m |
| Other intangible assets<sup>1</sup> | **259** | 303 |
| **Intangible assets** | **259** | 303 |

---

1Included within the group's other intangible assets is internally generated software with a net carrying value of £255m (2024: £296m). During the year,

capitalisation of internally generated software was £64m (2024: £145m),net impairment reversal was £(25)m (2024: impairment of £4m) and amortisation was

£141m (2024: £71m).

---

| | |
|:---|:---|
| 8 | Provisions |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Restructuring**<br> **costs**<br>| **Legal** <br>**proceedings** <br>**and regulatory** <br>**matters**<br>| **Customer** <br>**remediation**<br>| **Other**<br>**provisions**<br>| **Total** |
|  | **£m** | **£m** | **£m** | **£m** | **£m** |
| **Provisions (excluding contractual commitments)** |  |  |  |  |  |
| At 31 Dec 2024 | 27 | 50 | 7 | 107 | 191 |
| Additions | **181** | **6** | **1** | **6** | **194** |
| Amounts utilised | **(18)** | **(35)** | **—** | **(14)** | **(67)** |
| Unused amounts reversed | **(3)** | **(8)** | **(4)** | **(4)** | **(19)** |
| Exchange and other movements | **2** | **8** | **—** | **(8)** | **2** |
| **At 30 Jun 2025** | **189** | **21** | **4** | **87** | **301** |
| **Contractual commitments**<sup>1</sup> |  |  |  |  |  |
| At 31 Dec 2024 |  |  |  |  | 84 |
| Net change in expected credit loss provisions |  |  |  |  | **(10)** |
| **At 30 Jun 2025** |  |  |  |  | **74** |
| **Total provisions** |  |  |  |  |  |
| At 31 Dec 2024 |  |  |  |  | 275 |
| **At 30 Jun 2025** |  |  |  |  | **375** |

---

1The contractual commitments provision includes off-balance sheet loan commitments and guarantees, for which expected credit losses are provided under IFRS

9. Further analysis of the movement in the expected credit loss is disclosed within the 'Reconciliation of changes in gross carrying/nominal amount and

allowances for loans and advances to banks and customers including loan commitments and financial guarantees' table on page <u>[23](#i14b1075f5c494827affb4e86aa0331bf_0-0-1-11-8759141)</u>.

Further details of 'Legal proceedings and regulatory matters' are set out in Note 10 'Legal proceedings and regulatory matters'. Legal

proceedings include civil court, arbitration or tribunal proceedings brought against HSBC companies (whether by way of claim or counterclaim);

or civil disputes that may, if not settled, result in court, arbitration or tribunal proceedings. Regulatory matters refers to investigations, reviews

and other actions carried out by, or in response to, the actions of regulators or law enforcement agencies in connection with alleged wrongdoing

by HSBC.

Customer remediation refers to HSBC's activities to compensate customers for losses or damages associated with a failure to comply with

regulations or to treat customers fairly. Customer remediation is often initiated by HSBC in response to customer complaints and/or industry

developments in sales practices, and is not necessarily initiated by regulatory action.

For further details of the impact of IFRS 9 on undrawn loan commitments and financial guarantees, presented in 'Contractual commitments',

see Note 9.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **46** |

---

9Contingent liabilities, contractual commitments and guarantees

---

| | | |
|:---|:---|:---|
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **£m** | £m |
| Guarantees and other contingent liabilities: |  |  |
| – financial guarantees | **2855** | 2876 |
| – performance and other guarantees | **20325** | 19464 |
| – other contingent liabilities | **18** | 18 |
| **At the end of the period** | **23198** | 22358 |
| Commitments:<sup>1</sup> |  |  |
| – documentary credits and short-term trade-related transactions | **1368** | 1588 |
| – forward asset purchases and forward deposits placed | **56860** | 32672 |
| – standby facilities, credit lines and other commitments to lend | **93370** | 93746 |
| **At the end of the period** | **151598** | 128006 |

---

1Includes £145,623m of commitments at 30 June 2025 (31 December 2024: £121,764m), to which the impairment requirements in IFRS 9 are applied where the

group has become party to an irrevocable commitment.

The above table discloses the nominal principal amounts, which represent the maximum amounts at risk should the contracts be fully drawn

upon and clients default. As a significant portion of guarantees and commitments is expected to expire without being drawn upon, the total of

the nominal principal amounts is not indicative of future liquidity requirements.

Guarantees with terms of more than one year are subject to the group's annual credit review process.

Contingent liabilities arising from legal proceedings, regulatory and other matters against group companies are disclosed in Note 10: 'Legal

proceedings and regulatory matters'. The expected credit loss provisions relating to guarantees and commitments under IFRS 9 are disclosed in

Note 8: 'Provisions'. Further analysis of the movement in the ECL provision is disclosed within the 'Reconciliation of changes in gross carrying/

nominal amount and allowances for loans and advances to banks and customers including loan commitments and financial guarantees' table on

page <u>[23](#i14b1075f5c494827affb4e86aa0331bf_0-0-1-11-8759141)</u>.

10Legal proceedings and regulatory matters

The group is party to legal proceedings and regulatory matters in a number of jurisdictions arising out of its normal business operations. Apart

from the matters described below, the group considers that none of these matters are material. The recognition of provisions is determined in

accordance with the accounting policies set out in Note 1 of the Annual Report and Accounts 2024. While the outcomes of legal proceedings

and regulatory matters are inherently uncertain, management believes that, based on the information available to it, appropriate provisions have

been made in respect of these matters as at 30 June 2025 (see Note 8: 'Provisions'). Where an individual provision is material, the fact that a

provision has been made is stated and quantified, except to the extent that doing so would be seriously prejudicial. Any provision recognised

does not constitute an admission of wrongdoing or legal liability. It is not practicable to provide an aggregate estimate of potential liability for our

legal proceedings and regulatory matters as a class of contingent liabilities.

Bernard L. Madoff Investment Securities LLC

Various non-US HSBC companies provided custodial, administration and similar services to a number of funds incorporated outside the US

whose assets were invested with Bernard L. Madoff Investment Securities LLC ('Madoff Securities'). Based on information provided by Madoff

Securities as at 30 November 2008, the purported aggregate value of these funds was $8.4bn, including fictitious profits reported by Madoff.

Based on information available to HSBC, the funds' actual transfers to Madoff Securities minus their actual withdrawals from Madoff Securities

during the time HSBC serviced the funds are estimated to have totalled approximately $4bn. Various HSBC companies have been named as

defendants in lawsuits arising out of Madoff Securities' fraud.

**Trustee litigation:** The Madoff Securities trustee (the 'Trustee') has brought lawsuits in the US against various HSBC companies and others

seeking recovery of alleged transfers from Madoff Securities to the HSBC companies in the amount of $543m (plus interest), and these lawsuits

remain pending in the US Bankruptcy Court for the Southern District of New York.

The Trustee has filed a claim against various HSBC companies in the High Court of England and Wales seeking recovery of alleged transfers

from Madoff Securities to the HSBC companies. The claim has not yet been served and the amount claimed has not been specified.

**Fairfield Funds litigation**: Fairfield Sentry Limited, Fairfield Sigma Limited and Fairfield Lambda Limited (each in liquidation and together, the

'Fairfield Funds') have brought lawsuits in the US against various HSBC companies and others seeking recovery of alleged transfers from the

Fairfield Funds to the HSBC companies (that acted as nominees for clients) in the amount of $382m (plus interest). Fairfield Funds' claims

against most of the HSBC companies have been dismissed, but remain pending on appeal before the US Court of Appeals for the Second

Circuit. Fairfield Funds' claims against HSBC Private Bank (Suisse) SA and HSBC Securities Services Luxembourg ('HSSL') have not been

dismissed and are ongoing before the US Bankruptcy Court for the Southern District of New York. HSBC Private Bank (Suisse) SA and HSSL

have appealed the decision not to dismiss them and these appeals are pending before the US Court of Appeals for the Second Circuit.

**Herald Fund SPC ('Herald') litigation:** HSSL and HSBC Bank plc are defending an action brought by Herald (in liquidation) before the

Luxembourg District Court seeking restitution of securities and cash in the amount of $2.5bn (plus interest), or damages in the amount of

$5.6bn (plus interest). In 2013, the Luxembourg District Court dismissed Herald's securities restitution claim and stayed the cash restitution and

damages claims. In December 2024, the Luxembourg Court of Appeal reversed the Luxembourg District Court's dismissal and determined that

Herald's claims for restitution of securities and cash against HSSL were founded in principle. HSSL has appealed this decision and a hearing

before the Luxembourg Court of Cassation is listed for September 2025. Herald's claim against HSBC Bank plc is pending.

**Alpha Prime Fund Limited ('Alpha Prime') litigation**: Various HSBC companies are defending a number of actions brought by Alpha Prime in

the Luxembourg District Court seeking damages for alleged breach of contract and negligence in the amount of $1.16bn (plus interest). These

matters are currently pending before the Luxembourg District Court.

---

| | |
|:---|:---|
| **47** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Notes on the interim condensed financial statements

In November 2024, Alpha Prime served various HSBC companies with a lawsuit filed in the Bermuda Supreme Court seeking damages for

unspecified amounts for alleged breach of contract and negligence. This claim is currently stayed.

**Senator Fund SPC ('Senator') litigation**: HSSL and the Luxembourg branch of HSBC Bank plc are defending a number of actions brought by

Senator before the Luxembourg District Court seeking restitution of securities in the amount of $625m (plus interest), or damages in the

amount of $188m (plus interest). These matters are currently pending before the Luxembourg District Court.

Based on the facts currently known, it is not practicable at this time for HSBC Bank plc to predict the resolution of these matters, including the

timing or any possible impact on HSBC Bank plc, which could be significant.

US Anti-Terrorism Act litigation

Since November 2014, a number of lawsuits have been filed in federal courts in the US against various HSBC companies and others on behalf

of plaintiffs who are, or are related to, alleged victims of terrorist attacks in the Middle East. In each case, it is alleged that the defendants aided

and abetted the unlawful conduct of various sanctioned parties in violation of the US Anti-Terrorism Act, or provided banking services to

customers alleged to have connections to terrorism financing. Seven actions, which seek damages for unspecified amounts, remain pending

and HSBC Bank plc's motions to dismiss have been granted in three of these cases. These dismissals are subject to appeals and/or the plaintiffs

re-pleading their claims. The four other actions are at an early stage.

Based on the facts currently known, it is not practicable at this time for HSBC Bank plc to predict the resolution of these matters, including the

timing or any possible impact on HSBC Bank plc, which could be significant.

US dollar Libor litigation

Beginning in 2011, HSBC and other panel banks have been named as defendants in a number of individual and putative class action lawsuits

filed in federal and state courts in the US with respect to the setting of US dollar Libor. The complaints assert claims under various US federal

and state laws, including antitrust and racketeering laws and the US Commodity Exchange Act ('CEA'). HSBC has concluded class settlements

with five groups of plaintiffs, and several class action lawsuits brought by other groups of plaintiffs have been voluntarily dismissed. Two

individual US dollar Libor-related actions seeking damages from HSBC for unspecified amounts remain pending.

Based on the facts currently known, it is not practicable at this time for HSBC Bank plc to predict the resolution of the pending matters,

including the timing or any possible impact on HSBC Bank plc, which could be significant.

Foreign exchange-related investigations and litigation

Since 2017, HSBC Bank plc, among other financial institutions, has been defending a complaint filed by the Competition Commission of South

Africa before the South African Competition Tribunal for alleged anti-competitive behaviour in the South African foreign exchange market. In

2020, a revised complaint was filed which also named HSBC Bank USA N.A. ('HSBC Bank USA') as a defendant. In January 2024, the South

African Competition Appeal Court dismissed HSBC Bank USA from the revised complaint but denied HSBC Bank plc's application to dismiss.

Both the Competition Commission and HSBC Bank plc have appealed to the Constitutional Court of South Africa.

HSBC Bank plc and HSBC Holdings plc have reached a settlement with plaintiffs in Israel to resolve a class action filed in the local courts

alleging foreign exchange-related misconduct. The settlement remains subject to court approval.

Lawsuits alleging foreign exchange-related misconduct remain pending against HSBC Bank plc and other banks in courts in Brazil.

In February 2024, HSBC Bank plc and HSBC Holdings plc were joined to an existing claim brought in the UK Competition Appeals Tribunal

against various other banks alleging historical anti-competitive behaviour in the foreign exchange market and seeking approximately £3bn in

damages from all the defendants. This matter is at an early stage.

Based on the facts currently known, it is not practicable at this time for HSBC Bank plc to predict the resolution of these matters, including the

timing or any possible impact on HSBC Bank plc, which could be significant.

Precious metals fix-related litigation

**US litigation:** HSBC and other members of The London Silver Market Fixing Limited are defending a class action pending in the US District

Court for the Southern District of New York alleging that, from January 2007 to December 2013, the defendants conspired to manipulate the

price of silver and silver derivatives for their collective benefit in violation of US antitrust laws, the CEA and New York state law. In May 2023,

this action, which seeks damages for unspecified amounts, was dismissed but remains pending on appeal.

**Canada litigation:** HSBC and other financial institutions are defending putative class actions filed in the Ontario and Quebec Superior Courts of

Justice alleging that the defendants conspired to manipulate the price of silver, gold and related derivatives in violation of the Canadian

Competition Act and common law. These actions each seek CA$1bn in damages plus CA$250m in punitive damages. Two of the actions are

proceeding and the others have been stayed.

Based on the facts currently known, it is not practicable at this time for HSBC Bank plc to predict the resolution of these matters, including the

timing or any possible impact on HSBC Bank plc, which could be significant.

Tax-related investigations

Since 2023, the French National Financial Prosecutor has been investigating a number of banks, including HBCE and the Paris branch of HSBC

Bank plc, in connection with alleged tax fraud related to the dividend withholding tax treatment of certain trading activities. HSBC Bank plc and

the German branch of HBCE also continue to cooperate with investigations by the German public prosecutor into numerous financial institutions

and their employees, in connection with the dividend withholding tax treatment of certain trading activities.

Based on the facts currently known, it is not practicable at this time for HSBC Bank plc to predict the resolution of these matters, including the

timing or any possible impact on HSBC Bank plc, which could be significant.

---

| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **48** |

---

Gilts trading investigation and litigation

Since 2018, the UK Competition and Markets Authority ('CMA') has been investigating HSBC and four other banks for suspected anti-

competitive conduct in relation to the historical trading of gilts and related derivatives. In February 2025, the CMA announced the conclusion of

its investigation and imposed a £23.4m fine on HSBC, which has been paid. This matter is now closed.

In June 2023, HSBC Bank plc and HSBC Securities (USA) Inc., among other banks, were named as defendants in a putative class action filed in

the US District Court for the Southern District of New York by plaintiffs alleging anti-competitive conduct in the gilts market and seeking

damages for unspecified amounts. Certain of the defendants, including HSBC Bank plc and HSBC Securities (USA) Inc., have reached a

settlement with the plaintiffs to resolve this matter. The settlement remains subject to final court approval.

Investigations involving HSBC Private Bank (Suisse) SA

Law enforcement authorities in Switzerland and France are investigating HSBC Private Bank (Suisse) SA in connection with alleged money

laundering offences in respect of two historical banking relationships. These investigations are at an early stage.

Based on the facts currently known, it is not practicable at this time for HSBC Bank plc to predict the resolution of these matters, including the

timing or any possible impact on HSBC Bank plc, which could be significant.

Other regulatory investigations, reviews and litigation

HSBC Bank plc and/or certain of its affiliates are also subject to a number of other enquiries and examinations, requests for information,

investigations and reviews by various tax authorities, regulators, competition and law enforcement authorities, as well as legal proceedings

including litigation, arbitration and other contentious proceedings, in connection with various matters arising out of their businesses and

operations.

At the present time, HSBC Bank plc does not expect the ultimate resolution of any of these matters to be material to the group's financial

position; however, given the uncertainties involved in legal proceedings and regulatory matters, there can be no assurance regarding the

eventual outcome of a particular matter or matters.

---

| | |
|:---|:---|
| 11 | Assets held for sale and liabilities of disposal groups held for sale |

---

---

| | | |
|:---|:---|:---|
| Held for sale | Held for sale | Held for sale |
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **£m** | £m |
| Disposal groups | **28128** | 21620 |
| Unallocated impairment losses<sup>1</sup> | **(58)** | (25) |
| Non-current assets held for sale | **52** | 11 |
| **Assets held for sale** | **28122** | 21606 |
| Liabilities of disposal groups | **33097** | 23110 |

---

1This represents impairment losses in excess of the carrying value on the non-current assets, excluded from the measurement scope of IFRS 5.

Disposal groups

Private Banking business in Germany

On 23 September 2024, HSBC Continental Europe, a wholly-owned subsidiary of HSBC Bank plc, announced the reaching of an agreement to

sell its private banking business in Germany to BNP Paribas. The disposal group met held for sale criteria in the third quarter of 2024, with

balances remaining classified as held for sale at 30 June 2025 of £2bn in assets and £2bn in liabilities. This sale is expected to complete in the

second half of 2025 and generate an estimated pre-tax gain on disposal of £0.2bn, which will be recognised on completion.

Business in South Africa

On 25 September 2024, HSBC Bank plc reached an agreement to transfer its business in South Africa to local lender FirstRand Bank Ltd. The

disposal group met held for sale criteria in the fourth quarter of 2024, with balances remaining classified as held for sale at 30 June 2025 of

£0.6bn in assets and £2.4bn in liabilities. The transaction, which has received regulatory and governmental approvals, is now expected to

complete in the first quarter of 2026. At closing, cumulative foreign currency translation reserves and other reserves will recycle to the income

statement. At 30 June 2025, foreign currency translation reserve and other reserve losses stood at £0.1bn.

French Life Insurance Business

On 20 December 2024, HSBC Continental Europe signed a memorandum of understanding for the planned sale of its French life insurance

business, HSBC Assurances Vie (France), to Matmut Société d'Assurance Mutuelle. The Share Sale Agreement for the transaction was signed

on 21 March 2025 following completion of all relevant employee information and consultation processes. The transaction, which has received

regulatory approvals, is expected to complete in the second half of 2025. The disposal group met held for sale criteria in the fourth quarter of

2024, with balances remaining classified as held for sale at 30 June 2025 of £20.3bn in assets and £19.6bn in liabilities. The transaction is

estimated to generate a pre-tax loss of £0.2bn inclusive of migration costs and the recycling of related reserves, largely on completion. The

transaction is structured on the basis of a price fixed on the reference date of 30 June 2024. Between this date and completion the loss on

disposal will be adjusted for changes in the net asset value, including the entity's earnings, which will continue to be consolidated into the

Group's results until disposal.

---

| | |
|:---|:---|
| **49** | **HSBC Bank plc** Interim Report 2025 on Form 6-K |

---

Notes on the interim condensed financial statements

Retained portfolio of home and certain other loans in France

Following the sale of our retail banking operations on 1 January 2024, HSBC Continental Europe retained a portfolio of home and certain other

loans, with a carrying value of £5.9bn (€7.1bn) at the time of sale. During the fourth quarter of 2024, we began actively marketing the retained

portfolio for sale. As a result, on 1 January 2025 we reclassified the portfolio to a hold-to-collect-and-sell business model, measuring it at fair

value through other comprehensive income.

Since reclassification, we have recognised a fair value pre-tax loss in other comprehensive income of £1bn on the remeasurement of the

financial instruments and a £0.1bn mark-to-market gain in 'net income from financial instruments held for trading or managed on a fair value

basis' on non-qualifying economic hedges entered into in December 2024, hedging interest rate risk on the portfolio.

On 18 July 2025, HSBC Continental Europe signed a memorandum of understanding with a consortium comprising Rothesay Life plc and CCF

regarding the sale of the portfolio. The potential transaction, which remains subject to relevant information and consultation processes with

respective works councils, is expected to complete in the fourth quarter of 2025. At 30 June 2025, given the advanced stage of agreement on

deal terms and that completion was expected within 12 months, £4.5bn in loans met the criteria to be classified as held for sale in accordance

with IFRS 5. Upon completion, the cumulative fair value changes recognised through other comprehensive income will recycle to the income

statement.

Custody Business in Germany

On 27 June 2025, HSBC Continental Europe reached an agreement to sell its custody business in Germany to BNP Paribas, subject to

customary regulatory and anti-trust approvals and the conclusion of negotiations with the works council in Germany. Following these, it is

anticipated that the sale will be completed in a phased manner, starting in the first quarter of 2026. While client consent and related operational

requirements may extend the timing for completion of all client transfers, given the signing of a sale and purchase agreement, the disposal

group met the held for sale criteria at 30 June 2025. As a result, £0.7bn in assets and £9.2bn in liabilities were classified as held for sale. The

sale is expected to generate an estimated pre-tax gain on disposal of £0.1bn, which will be recognised in line with completion of client transfers.

Fund administration business in Germany

On 11 July 2025, HSBC Continental Europe reached an agreement to sell its fund administration business, Internationale

Kapitalanlagegesellschaft mbH, to BlackFin Capital Partners S.A.S. The disposal group, comprising £0.1bn in assets and £0.1bn in liabilities at

30 June 2025, is expected to be classified to held for sale in the third quarter of 2025, reflecting commitment by the parties to the sale in July

2025. Completion of the potential sale is subject to customary regulatory and competition approvals as well as the conclusion of negotiations

with the German works council, and is expected in the second half of 2026, at which point an immaterial gain on disposal will be recognised.

UK Life Insurance

On 3 July 2025, HSBC Bank plc entered into a binding agreement to sell its UK life insurance entity, HSBC Life (UK) Limited, to Chesnara plc.

The disposal group, comprising £4.6bn in assets and £4.3bn in liabilities at 30 June 2025, is expected to be classified to held for sale in the third

quarter of 2025, reflecting commitment by the parties to the sale in July 2025, when we will recognise an estimated pre-tax loss on disposal of

£0.04bn. The transaction, which remains subject to regulatory approval, is expected to complete in early 2026.

Major classes of assets and associated liabilities of disposal groups held for sale, including allocated impairment losses, were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** |
|  | **French Life** <br>**Insurance** <br>**Business**<br>| **South Africa**<sup>1</sup> | **German Private** <br>**Banking** <br>**Business**<br>| **French** <br>**portfolio of** <br>**home and** <br>**other loan**<br>| **Germany** <br>**custody** <br>**business**<sup>2</sup><br>| **Total** |
|  | **£m** | **£m** | **£m** | **£m** | **£m** | **£m** |
| **Operating segment** | **IWPB** | **CIB and** <br>**Corporate** <br>**Centre**<br>| **IWPB** | **Corporate** <br>**Centre**<br>| **CIB** |  |
| **Assets of disposal groups held for sale** |  |  |  |  |  |  |
| Cash and balances at central banks | **—** | **—** | **1683** | **—** | **—** | **1683** |
| Financial assets designated and otherwise <br>mandatorily measured at fair value through profit <br>and loss<br>| **12389** | **—** | **—** | **—** | **—** | **12389** |
| Loans and advances to banks | **43** | **—** | **—** | **—** | **81** | **124** |
| Loans and advances to customers | **—** | **554** | **263** | **—** | **631** | **1448** |
| Financial investments<sup>3</sup> | **7054** | **—** | **—** | **4520** | **—** | **11574** |
| Insurance Contract Assets | **24** | **—** | **—** | **—** | **—** | **24** |
| Prepayments, accrued income and other assets | **828** | **13** | **13** | **4** | **28** | **886** |
| **Total assets** | **20338** | **567** | **1959** | **4524** | **740** | **28128** |
| **Liabilities of disposal groups held for sale** |  |  |  |  |  |  |
| Deposit by banks | **—** | **—** | **—** | **—** | **75** | **75** |
| Customer accounts | **—** | **2343** | **1943** | **—** | **9046** | **13332** |
| Financial liabilities designated at fair value | **10** | **—** | **—** | **—** | **—** | **10** |
| Insurance Contract Liabilities | **18196** | **—** | **—** | **—** | **—** | **18196** |
| Accruals, deferred income and other liabilities | **1400** | **25** | **16** | **—** | **43** | **1484** |
| **Total liabilities** | **19606** | **2368** | **1959** | **—** | **9164** | **33097** |
| Expected date of completion | **Second half of** <br>**2025**<br>| **First quarter of** <br>**2026**<br>| **Second half of** <br>**2025**<br>| **Second half of** <br>**2025**<br>| **Second half of** <br>**2027**<br>|  |

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| | |
|:---|:---|
| **HSBC Bank plc** Interim Report 2025 on Form 6-K | **50** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 |
|  | French Life <br>Insurance <br>Business<br>| South Africa<sup>1</sup> | German Private <br>Banking<br> Business<br>| Total |
|  | £m | £m | £m | £m |
| Operating segment | IWPB | CIB and<br> Corporate<br> Centre<br>| IWPB |  |
| Assets of disposal groups held for sale |  |  |  |  |
| Cash and balances at central banks |  |  | 1511 | 1511 |
| Financial assets designated and otherwise mandatorily <br>measured at fair value through profit and loss<br>| 11607 |  |  | 11607 |
| Loans and advances to banks | 115 |  |  | 115 |
| Loans and advances to customers |  | 523 | 246 | 769 |
| Financial investments<sup>3</sup> | 6776 |  |  | 6776 |
| Insurance Contract Assets | 18 |  |  | 18 |
| Prepayments, accrued income and other assets | 793 | 13 | 18 | 824 |
| Total assets | 19309 | 536 | 1775 | 21620 |
| Liabilities of disposal groups held for sale |  |  |  |  |
| Customer accounts |  | 2626 | 1662 | 4288 |
| Financial liabilities designated at fair value | 9 |  | 95 | 104 |
| Insurance Contract Liabilities | 17387 |  |  | 17387 |
| Accruals, deferred income and other liabilities | 1272 | 41 | 18 | 1331 |
| Total liabilities | 18668 | 2667 | 1775 | 23110 |
| Expected date of completion | Second Half of <br>2025<br>| Second Half of <br>2025<br>| Second Half of <br>2025<br>|  |

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1Under the financial terms of the sale of our South Africa business, HSBC Bank plc will transfer the business with a net asset value of £0.6bn for book value less

any provisions. The purchase price will be satisfied by the transfer of agreed liabilities of £2.4bn. Any required increase to the net asset value of the business to

achieve this will be satisfied by the inclusion of additional cash. Based upon the net liabilities of the disposal group at 30 June 2025, HSBC would be expected to

include a cash contribution of £1.8bn.

2Under the financial terms of the sale of our custody business in Germany, HSBC Continental Europe will transfer a nil net asset value for each client transferred,

by way of inclusion of additional cash.

3Represents financial investments measured at fair value through other comprehensive income.

12Transactions with related parties

There were no other changes to the related party transactions described in Note 33 of the Annual Report and Accounts 2024 that have had a

material effect on the financial position or performance of the group in the half-year to 30 June 2025.

All related party transactions that took place in the half-year to 30 June 2025 were similar in nature to those disclosed in the Annual Report and

Accounts 2024.

13Events after the balance sheet date

On 3 July 2025, HSBC Bank plc entered into a binding agreement to sell its UK life insurance entity, HSBC Life (UK) Limited, to Chesnara plc.

The transaction is expected to complete in early 2026.

On 11 July 2025, HSBC Continental Europe reached an agreement to sell its fund administration business, Internationale

Kapitalanlagegesellschaft mbH, to BlackFin Capital Partners S.A.S. The potential transaction is subject to customary regulatory and competition

approvals as well as the conclusion of negotiations with the German works council, and expected to complete in the second half of 2026.

On 18 July 2025, HSBC Continental Europe signed a memorandum of understanding with a consortium comprising Rothesay Life plc and CCF

regarding the sale of its portfolio of home and certain other loans retained after the sale of its French retail banking operations. The potential

transaction, which remains subject to relevant information and consultation processes with respective works councils, is expected to complete

in the fourth quarter of 2025, when cumulative fair value losses recognised through other comprehensive income would recycle to the income

statement. These stood at £1bn at 30 June 2025.

14Interim Report 2025 and statutory accounts

The information in the Form 6-K is unaudited and does not constitute statutory accounts within the meaning of section 434 of the Companies

Act 2006. This Form 6-K was approved by the Board of Directors on 30 July 2025. The statutory accounts of HSBC Bank plc for the year ended

31 December 2024 have been delivered to the Registrar of Companies in England and Wales in accordance with section 447 of the Companies

Act 2006.

HSBC Bank plc

*Incorporated in England with limited liability. Registered in England: number 00014259*

REGISTERED OFFICE

8 Canada Square, London E14 5HQ, United Kingdom

Web: www.hsbc.co.uk© Copyright HSBC Bank plc 2025

All rights reserved

No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical,

photocopying, recording, or otherwise, without the prior written permission of HSBC Bank plc.

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by

the undersigned, thereunto duly authorized.

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| | |
|:---|:---|
| HSBC Bank plc | HSBC Bank plc |
| By: | /s/ Kavita Mahtani |
|  | Name: Kavita Mahtani |
|  | Title: Chief Financial Officer, HSBC Bank plc <br>and Corporate and Institutional Banking<br>|

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Dated: July 30, 2025