# EDGAR Filing Document

**Accession Number:** 0001089113
**File Stem:** 0001089113-25-000052
**Filing Date:** 2025-7
**Character Count:** 710807
**Document Hash:** d535aef810e157eb740d710349f6fc27
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001089113-25-000052.hdr.sgml**: 20250730

**ACCESSION NUMBER**: 0001089113-25-000052

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 120

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250730

**DATE AS OF CHANGE**: 20250730

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HSBC HOLDINGS PLC
- **CENTRAL INDEX KEY:** 0001089113
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14930
- **FILM NUMBER:** 251164986

**BUSINESS ADDRESS:**
- **STREET 1:** 8 CANADA SQUARE
- **CITY:** LONDON
- **STATE:** X0
- **ZIP:** E145HQ
- **BUSINESS PHONE:** 442079913048

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

?xml version='1.0' encoding='ASCII'? hsbc-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: 001-14930

**HSBC Holdings 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 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Holdings plc's registration statement on Form F-3 (File No. 333-277306).

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

Form 6-K.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;

HSBC Holdings plc Interim Report 2025 on Form 6-K<br>

Opening up a world of opportunity

Our ambition is to become the world's most trusted bank

globally, putting customers at the heart of everything we do.

This refreshed ambition will help us focus on generating strategic

growth and delivering attractive shareholder returns.

🡠For more details, see the Group CEO's shareholder letter on page <u>[3](#i98f96430fe55438e9c7c1e27f95b8fec_15942918608728)</u>.

Contents

**Overview**

1aForward-looking statements

**<u>[1](#i98f96430fe55438e9c7c1e27f95b8fec_28)</u>**Highlights

**<u>[3](#i98f96430fe55438e9c7c1e27f95b8fec_15942918608728)</u>**Group CEO's shareholder letter

**<u>[5](#i98f96430fe55438e9c7c1e27f95b8fec_49)</u>**Financial overview

**<u>[10](#i98f96430fe55438e9c7c1e27f95b8fec_46)</u>**ESG overview

**<u>[11](#i98f96430fe55438e9c7c1e27f95b8fec_4995)</u>**Business segments

**<u>[16](#i98f96430fe55438e9c7c1e27f95b8fec_94)</u>**Risk overview

**Interim management report**

**18**Financial summary

**26**Business segments

**32**Legal entities

**38**Alternative performance measures

**42**Risk

**42**– Key developments in the first half

&nbsp;&nbsp;&nbsp;&nbsp;of 2025

**42**– Credit risk

**67**– Treasury risk

**72**– Market risk

**74**– Insurance manufacturing

&nbsp;&nbsp;&nbsp;&nbsp;operations risk

**Interim condensed consolidated** 

**financial statements**

**75**Interim condensed consolidated

financial statements

**82**Notes on the interim condensed

consolidated financial statements

**Additional information**

**101**Shareholder information

**108**Abbreviations

**A reminder** 

The currency we report in is US dollars.

**Use of alternative performance measures**

We supplement our IFRS Accounting Standards

figures with non-IFRS Accounting Standards measures

used by management internally that constitute

alternative performance measures under European

Securities and Markets Authority guidance and non-

GAAP financial measures defined in and presented in

accordance with US Securities and Exchange

Commission rules and regulations. These measures are

highlighted with the following symbol: ※

🡠Further explanation may be found on pages <u>[5](#i98f96430fe55438e9c7c1e27f95b8fec_2288)</u>

and 18.

**Segmental reporting**

Effective from 1 January 2025, the Group's operating

segments comprise four new businesses: Hong Kong,

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

International Wealth and Premier Banking ('IWPB'),

along with Corporate Centre. All segmental

comparative data have been re-presented on this basis.

🡠For further detail on our business segments,

see pages <u>[11](#i98f96430fe55438e9c7c1e27f95b8fec_4995)</u> and 26.

**Financial targets**

For our financial targets, medium term is defined as

between three to five years, and long term as five to

six years, from 1 January 2025.

🡠See pages [2](#i98f96430fe55438e9c7c1e27f95b8fec_37) and [5](#i98f96430fe55438e9c7c1e27f95b8fec_55) for further details.

None of the websites referred to in this Interim Report on

Form 6-K for the half-year ended 30 June 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 this Form 6-K.

Financial performance indicators in 1H25

---

| | | |
|:---|:---|:---|
| **Return on average tangible equity** <br>**(annualised)** ※<br>14.7%<br>(1H24: 21.4%)<br>| **Profit before tax**<br>$15.8bn<br>(1H24: $21.6bn)<br>| **Common equity tier 1 capital ratio**<br>14.6%<br>(31 Dec 2024: 14.9%)<br>|
| **Return on average tangible equity** <br>**excluding notable items (annualised)**※<br>18.2%<br>(1H24: 17.0%)<br>| **Constant currency profit before tax** <br>**excluding notable items** ※<br>$18.9bn<br>(1H24: $18.0bn)<br>| **Second interim dividend per share**<br>$0**.10**<br>(2Q24 dividend per share: $0.31, including a <br>second interim dividend of $0.10 and $0.21 <br>special dividend) <br>|

---

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

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| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

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Cautionary statement regarding forward-looking statements

This Form 6-K contains certain forward-

looking statements with respect to HSBC's:

financial condition; results of operations and

business, including the strategic priorities;

financial, investment and capital targets; and

ESG ambitions, targets and commitments

described herein.

Statements that are not historical facts,

including statements about HSBC'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. HSBC 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, summary financial statements

to shareholders, offering circulars and

prospectuses, press releases and other

written materials, and in oral statements

made by HSBC'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 we operate, 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 HSBC

operates, which could have a material

adverse effect on (among other things) our

financial condition, results of operations,

prospects, liquidity, capital position and

credit ratings; deviations from the market

and economic assumptions that form the

basis for our ECL measurements (including,

without limitation, as a result of the Russia-

Ukraine war and the conflict in the Middle

East, inflationary pressures, commodity

price changes, and ongoing developments

in the commercial real estate sectors in

mainland China and Hong Kong); potential

changes in HSBC's dividend policy;

changes and volatility in foreign exchange

rates and interest rates levels, including the

adverse effect of the recent decline in

HIBOR and the accounting impact resulting

from financial reporting in respect of

hyperinflationary economies; volatility in

equity markets; lack of liquidity in wholesale

funding or capital markets, which may

affect our ability to meet our 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, diplomatic tensions between

China and the US, which may extend to and

involve other countries and territories, and

developments in Hong Kong and Taiwan,

alongside other potential areas of tension,

which may adversely affect HSBC by

creating regulatory, reputational and market

risks; the efficacy of government,

customer, and HSBC'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 HSBC both

directly and indirectly through our

customers and which may result in

potential financial and non-financial impacts;

illiquidity and downward price pressure in

national real estate markets; adverse

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 us as a conduit for illegal

activities without our knowledge; the

discontinuation of certain key Ibors and the

transition of the remaining legacy Ibor

contracts to near risk-free benchmark rates,

which continues to expose HSBC to some

financial and non-financial risks; and price

competition in the market segments we

serve;

–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 we operate 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 HSBC,

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 we operate including increased

competition from non-bank financial

services companies; and

–factors specific to HSBC, including our

success in adequately identifying the risks

we face, such as the incidence of loan

losses or delinquency, and managing those

risks (through account management,

hedging and other techniques); our ability to

achieve our financial, investment, capital

and ESG ambitions, targets, and

commitments (including the positions set

forth in our thermal coal phase-out policy

and our energy policy and our targets to

reduce our on-balance sheet financed

emissions and, where applicable, facilitated

emissions in our portfolio of selected high-

emitting sectors), which may result in our

failure to achieve any of the expected

outcomes of our strategic priorities;

evolving regulatory requirements and the

development of new technologies,

including artificial intelligence, affecting

how we manage model risk; model

limitations or failure, including, without

limitation, the impact that high inflationary

pressures and interest rates have had on

the performance and usage of financial

models, which may require us to hold

additional capital, incur losses and/or use

---

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

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| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

compensating controls, such as

judgemental post-model adjustments, to

address model limitations; changes to the

judgements, estimates and assumptions

we base our financial statements on;

changes in our ability to meet the

requirements of regulatory stress tests; a

reduction in the credit ratings assigned to

us or any of our subsidiaries, which could

increase the cost or decrease the

availability of our funding and affect our

liquidity position and net interest margin;

changes to the reliability and security of our

data management, data privacy, information

and technology infrastructure, including

threats from cyber-attacks, which may

impact our 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; our

dependence on loan payments and

dividends from subsidiaries to meet our

obligations; changes in our reporting

frameworks and accounting standards,

which have had and may continue to have a

material impact on the way we prepare our

financial statements; our ability to

successfully execute planned strategic

acquisitions and disposals; our success in

adequately integrating acquired businesses

into our business; our ability to successfully

execute and implement the announced

strategic reorganisation of the Group;

changes in our ability to manage third-party,

fraud, financial crime and reputational risks

inherent in our 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 our ability to recruit and retain senior

management and an inclusive and skilled

workforce; and changes in our ability to

develop sustainable finance and ESG-

related products consistent with the

evolving expectations of our regulators, and

our capacity to measure the environmental

and social impacts from our financing

activity (including as a result of data

limitations and changes in methodologies),

which may affect our ability to achieve our

ESG ambitions, targets and commitments,

including our net zero ambition, our targets

to reduce on-balance sheet financed

emissions and, where applicable, facilitated

emissions in our portfolio of selected high-

emitting sectors and the positions set forth

in our thermal coal phase-out policy and our

energy policy, and increase the risk of

greenwashing. Effective risk management

depends on, among other things, our ability

through stress testing and other techniques

to prepare for events that cannot be

captured by the statistical models it uses;

our success in addressing operational, legal

and regulatory, and litigation challenges;

and other risks and uncertainties we

identify in 'Risk Overview' on pages 16 to

17 of this Form 6-K.

Additional detailed information concerning

important factors, including but not limited to

ESG-related factors, that could cause actual

results to differ materially from those

anticipated or implied in any forward-looking

statement in this Form 6-K is available in our

Annual Report and Accounts for the fiscal

year ended 31 December 2024 (the 'Annual

Report and Accounts 2024'), which was filed

with the SEC on Form 20-F on 20 February

2025. This Form 6-K contains a number of images,

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 images,

graphics, text boxes and credentials are

designed to be read within the context of this

Form 6-K as a whole.

Certain defined terms

Unless the context requires otherwise,

'HSBC Holdings' means HSBC Holdings plc

and 'HSBC', the 'Group', 'we', 'us' and 'our'

refer to HSBC Holdings together with its

subsidiary undertakings. Within this

document the Hong Kong Special

Administrative Region of the People's

Republic of China is referred to as 'Hong

Kong'. When used in the terms

'shareholders' equity' and 'total shareholders'

equity', 'shareholders' means holders of

HSBC Holdings ordinary shares and those

preference shares and capital securities

issued by HSBC Holdings classified as equity.

The abbreviations '$m', '$bn' and '$tn'

represent millions, billions (thousands of

millions) and trillions of US dollars,

respectively.

---

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

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| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

Highlights

Financial performance in 1H25

–**Profit before tax decreased by $5.7bn to** 

**$15.8bn compared with 1H24,**primarily

due to the recognition of dilution and

impairment losses of $2.1bn related to our

associate Bank of Communications Co.,

Limited ('BoCom').In addition, there was an

adverse impact from the non-recurrence of

$3.6bn in net gains in 1H24 relating to the

disposals of our banking business in Canada

and our business in Argentina. **Profit after** 

**tax of $12.4bn was $5.2bn or 30% lower** 

**compared with 1H24.** 

–**Constant currency profit before tax** 

**excluding notable items increased by** 

**$0.9bn to $18.9bncompared with 1H24,**

from a strong performance in Wealth in our

IWPB and Hong Kong business segments,

supported by higher customer activity, and

in Foreign Exchange and Debt and Equity

Markets driven by volatile market conditions.

This was partly offset by higher expected

credit losses and other credit impairment

charges ('ECL') and a targeted increase in

operating expenses, which included higher

spend and investment in technology.

–**Annualised return on average tangible** 

**equity ('RoTE') in 1H25 was 14.7%,** 

**compared with 21.4% in 1H24. Excluding** 

**notable items, annualised RoTE in 1H25** 

**was 18.2%,**a rise of 1.2 percentage points

compared with 1H24.

–**Revenue decreased by $3.2bn or 9% to** 

**$34.1bn compared with 1H24.**The reduction

reflected the year-on-year impact of notable

items, mainly from disposals in Canada and

Argentina in 1H24. Excluding notable items,

revenue increased primarily due to fee and

other income growth in Wealth and in Foreign

Exchange and in Debt and Equity Markets.

**Constant currency revenue excluding** 

**notable items rose by $1.9bn to $35.4bn**

**compared with 1H24.**

–**Net interest income ('NII') decreased by** 

**$0.1bn compared with 1H24,**including an

–adverse impact of $0.4bn from foreign

currency translation differences.On a

constant currency basis, NII increased as the

benefit of our structural hedge and lower

costs of funding offset reductions due to the

business disposals in Argentina and Canada

and the impact of lower market interest rates

on asset re-pricing. The reduction in interest

rates reduced the funding costs of the trading

book, which led to a **fall in banking net** 

**interest income ('banking NII') of $0.9bn or** 

**4% compared with 1H24.**

–**Net interest margin ('NIM') of 1.57%** 

**decreased by 5 basis points ('bps')** 

**compared with 1H24,** mainly due to an

adverse impact from foreign currency

translation differences and the disposal of

our business in Argentina, partly offset by

the benefit of our structural hedge.

–**ECL of $1.9bn were $0.9bn higher than in**

**1H24.**The charge in 1H25 included charges

related to the Hong Kong commercial real

estate ('CRE') sector. This reflected updates

to our models used for ECL calculations, an

increase in allowances for new defaulted

exposures, as well as the over-supply of

non-residential properties putting continued

downward pressure on rental and capital

values. The 1H25 period also included

allowances to reflect heightened uncertainty

and a deterioration in the forward economic

outlook due to geopolitical tensions and

higher trade tariffs.In 1H24, the ECL charge

benefited from allowance releases, mainly in

the UK.

–**Operating expenses of $17.0bn were** 

**$0.7bn or 4% higher than in 1H24.**Growth

reflected restructuring and other related

costs associated with our organisational

simplification of $0.6bn. It also included

–higher spend and investment in technology.

These increases were partly offset by cost

reductions due to our disposals in Canada

and Argentina.

–**Target basis operating expenses were** 

**$0.4bn or 3% higher than in 1H24,** primarily

due to higher spend and investment in

technology and the impacts of inflation.

–**Customer lending balances of $982bn**

**increased by $51bn compared with** 

**31 December 2024,** including favourable

foreign currency translation differences. On

a constant currency basis, lending balances

increased by $7bn, mainly in our UK

business.

–**Customer accounts of $1,719bn increased** 

**by $64bn compared with 31 December** 

**2024,** including favourable foreign currency

translation differences. On a constant

currency basis, customer accounts

decreased by $8bn, mainly from the

classification of deposits to held for sale,

notably $12bn related to our custody

business in Germany, and outflows in CIB in

the UK, partly offset by an increase in our

Hong Kong business.

–**Common equity tier 1 ('CET1') capital** 

**ratio of 14.6% decreased by 0.3**

**percentage points compared with** 

**31 December 2024,** driven by an increase in

risk-weighted assets ('RWAs'), partly offset

by an increase in CET1 capital through profit

generation net of distributions.The increase

in RWAs was mainly driven by foreign

currency translation differences and asset

size movements.

–The Board has approved a **second interim** 

**dividend of $0.10 per share.** We also

intend to initiate a **share buy-back of up to** 

**$3bn,** which we expect to complete by our

third quarter 2025 results announcement.

🡠For detailed commentary, see page <u>[7](#i98f96430fe55438e9c7c1e27f95b8fec_4468)</u>.

Financial performance in 2Q25

–**Profit before tax decreased by $2.6bn or** 

**29%to $6.3bn compared with 2Q24,**

primarily due to the recognition of dilution

and impairment losses of $2.1bn in BoCom.

Profit after tax of $4.9bn was $2.0bn or

29% lower compared with 2Q24.**On a** 

**constant currency basis, profit before tax** 

**decreased by $2.7bn or 30%.**

–**Revenue fell by $0.1bn to $16.5bn**

**compared with 2Q24.**The reduction

included the impact of notable items, as

mentioned above. Excluding these,

revenue increased primarily due to fee and

other income growth in Wealth in our

IWPB and Hong Kong business segments,

supported by higher customer activity, and

in Foreign Exchange and in Debt and

Equity Markets, driven by volatile market

conditions.

–**Constant currency revenue excluding** 

**notable items rose by $0.8bn to $17.7bn.**

–**NIM of 1.56% decreased by 3 bps** 

**compared with 1Q25,** driven by lower

margins in Asia.

–**ECL of $1.1bn were $0.7bn higher than in** 

**2Q24.**The charge in 2Q25 included

charges related to the Hong Kong CRE

sector. This reflected updates to our

models used for ECL calculations, an

increase in allowances for new defaulted

exposures, as well as the over-supply of

non-residential properties putting

continued downward pressure on rental

and capital values.In 2Q24, the ECL

charge benefited from a release of

allowances in the UK and from a recovery

relating to a single CIB client.

–**Operating expenses of $8.9bn rose by** 

**$0.8bn or 10% compared with 2Q24.**The

increase was related to restructuring and

other related costs associated with our

organisational simplification, and from higher

spend and investment in technology. These

increases were partly offset by the impact of

the disposal of our business in Argentina.

–**Customer lending increased by $37bn**

**compared with 1Q25 on a reported basis** 

and by $5bn on a constant currency basis.

–**Customer accounts increased by $52bn**

**compared with 1Q25 on a reported basis** 

and by $2bn on a constant currency basis.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **2** |

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| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

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Outlook

–**We operate in a global environment** 

**characterised by constant change and** 

**uncertainty, creating volatility in both** 

**economic forecasts and financial** 

**markets.** The Group is well positioned to

manage the impacts of these challenges and

is focused on delivering the best outcomes

for our customers.

–**We continue to target a mid-teens RoTE** 

**in each of the three years from 2025 to** 

**2027 excluding notable items.** We also

continue to expect banking NII of around

$42bn in 2025 based on our latest

modelling, recognising the favourable

impacts of foreign exchange rates and the

adverse effect of the fall in the Hong Kong

Interbank Offered Rate ('HIBOR'),

particularly during 2Q25.

–The Group is well positioned to manage the

changes and uncertainties prevalent within

the global environment in which we operate,

including in relation to tariffs. **We have** 

**modelled a disruptive tariff scenario that** 

**includes significant reductions in policy** 

**rates, together with broader** 

**macroeconomic deterioration.** While we

–would expect the direct impact from tariffs

to have a relatively modest impact on our

revenue, the broader macroeconomic

deterioration may see RoTE excluding

notable items fall outside of our mid-teens

targeted range in future years.

–**We now expect ECL charges as a** 

**percentage of average gross loans to be** 

**around 40bps in 2025** (including loans held

for sale balances). This reflects continuing

challenging market conditions in the Hong

Kong CRE sector.

–**The Group remains on track to deliver on** 

**our cost target. Our growth in target basis** 

**operating expenses in 2025 compared with** 

**2024 remains approximately 3%.** Our cost

target includes the impact of simplification-

related saves associated with our announced

reorganisation.

–We continue to expect demand for lending

to remain muted during 2025. However,

**over the medium to long term we expect** 

**mid-single digit percentage growth for** 

**year-on-year customer lending balances.** 

–We continue to expect **double-digit** 

**percentage average annual growth in fee** 

**and other income in Wealth over the** 

**medium term.**

–**We intend to manage the CET1 capital** 

**ratio within our medium-term target** 

**range of 14% to 14.5%,** with a dividend

payout ratio target basis of 50% for 2025,

excluding material notable items and related

impacts.

🡠Our targets and expectations reflect our current

outlook for the global macroeconomic

environment and market-dependent factors,

such as market-implied interest rates (as of mid-

July 2025) and rates of foreign exchange, as well

as customer behaviour and activity levels.

🡠We do not reconcile our forward guidance on

RoTE excluding the impact of notable items,

target basis operating expenses, dividend payout

ratio target basis or banking NII to their

equivalent reported measures.

🡠See pages 18 to 19 for a further explanation of

RoTE excluding notable items, banking NII,

target basis operating expenses and dividend

payout ratio target basis. For further information

on our CET1 ratio, see page 67.

Reshaping the Group for growth

–At our 2024 full-year results we announced

measures to simplify the Group, and **we** 

**have committed to deliver an annualised** 

**reduction of around $1.5bn in our cost** 

**base,** expected by the end of 2026 from our

organisational simplification programme.

We are on track to deliver on our cost

commitments. During 1H25, we incurred

$0.6bn in costs in relation to our

organisational simplification. These were

primarily related to severance, with an

estimated annualised reduction in our cost

base of $0.7bn. By the end of 2025, we

expect to have identified and actioned

annualised cost saves of approximately

$1bn, which would result in a reduction of

around $0.4bn in operating expenses in the

income statement in 2025.

–We are also focused on opportunities where

we have a clear competitive advantage and

accretive returns, and **we aim to redeploy** 

**approximately $1.5bn of additional costs** 

**from non-strategic activities into these** 

**areas over the medium term.**

–We continue to make progress on actions

previously announced, including the wind-

down of our mergers and acquisitions

('M&A') and equity capital markets activities

in the UK, Europe and the US, and planned

divestments of our private banking business

in Germany, our business in South Africa,

our France life insurance business and our

Bahrain retail banking operations, subject to

local legal and other requirements.

–During 2Q25, we announced the planned

sale of our custody business in Germany and

completed the sale of our stake in Grupo

Galicia. In July 2025, we agreed the sale of

our UK life insurance business, our fund

administration business in Germany, our

business in Uruguay, and our retained

portfolio of home and certain other loans

associated with the disposal of our retail

banking operations in France. The portfolio

sale will result in the recycling to the income

statement of $1.4bn (as at 30 June 2025) in

accumulated fair value losses recognised

through other comprehensive income at

completion, expected in the second half of

2025. –Earlier this year, we also commenced

targeted strategic reviews of four retail

businesses in Asia: Australia, Indonesia and

Sri Lanka, where reviews are ongoing and no

decisions have been made, and Bangladesh,

where we will start to wind down the retail

business in the second half of this year. Our

CIB business in these markets is unaffected

by these reviews. Our business in Malta

remains under a strategic review and no

decisions have been made.

–**Our disciplined approach to capital** 

**allocation allows us to drive investment** 

**into priority growth areas. This includes** 

**further enhancing our Wholesale** 

**Transaction Banking capabilities,** 

**expanding our international businesses** 

**and building our Wealth business,** 

**particularly in Asia.** We also aim to

–continue to grow in our home markets in

Hong Kong and the UK, focusing on small

and medium-size enterprises, digital

capabilities and improving our product

proposition.

–Transaction banking continues to perform

well as we leverage our network and

capabilities to capture opportunities from

changing trade and capital flows. In 1H25,

**fee and other income in wholesale** 

**transaction banking demonstrated a** 

**strong performance with growth of 9%** 

**compared with 1H24,** particularly from

growth in Global Foreign Exchange.

–In Wealth, we are investing in wealth

centres and adding relationship managers.

**Wealth balances as at 30 June 2025,** 

**across all of our business segments, were** 

**$2.0tn, an increase of 12% compared with** 

**the same period last year.** Within this we

have attracted net new invested assets of

$44bn in the first six months of 2025, with

$27bn booked in Asia. This compared with

net new invested assets in 1H24 of $32bn,

with $38bn booked in Asia.

–In Hong Kong, **we attracted another** 

**600,000 new to bank customers**. While in

the UK, **we are focused on improving the** 

**customer experience in Business Banking** 

**as we seek to grow our market share.**

🡠For more details on our businesses held for sale

and disposal groups, see Note 15 on the

Financial Statements on page 100.

---

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

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| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

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Group CEO's shareholder letter

---

| | |
|:---|:---|
|  | ![George Elhedery_NEW.jpg](hsbc-20250630_g1.jpg) |
| Georges Elhedery<br>Group CEO | Georges Elhedery<br>Group CEO |

---

**RoTE** ※

14.7%

(1H24: 21.4%)

**RoTE excluding notable items**※

18.2%

(1H24: 17.0%)

**Profit before tax**

$15.8bn

(1H24: $21.6bn)

**Dear fellow shareholders,**

In my first letter to you I set out a clear vision

to unlock HSBC's full potential. It is built on

the principle of becoming a simple, more

agile, focused organisation to better serve our

customers. This mission has become even

more important as the world in which we

operate becomes even more uncertain.

By being mission-focused we intend to build

on our strong foundations and hallmark

financial strength, growing in areas of core

competitive advantage while remaining true

to our values. This will help us to achieve our

refreshed ambition of becoming the most

trusted bank globally, putting customers at

the heart of everything we do.

We are making positive progress.

**Strong performance** 

We performed strongly in the first half,

delivering an annualised return on tangible

equity ('RoTE') of 14.7%, or 18.2% excluding

the impact of notable items.

Our four businesses performed strongly with

revenue growing in each. We are investing in

customer experience, accelerating growth in

strategic activities and harnessing the power

of technology to change the way we work to

increase productivity.

In our Hong Kong home market, we attracted

a further 600,000 new to bank customers in

the first six months. We also grew deposits

by 9% over the last twelve months on a

constant currency basis.

In our UK home market, our loan book grew

by 4% on the same basis. We were

particularly encouraged by signs of recovery

in lending growth in commercial banking.

IWPB performed strongly. Our Group-wide

wealth businesses grew revenue by 22%, on

a constant currency basis, in line with our

medium-term guidance of growing fee and

other income at double-digit rates. In total,

we attracted net new invested assets of

$44bn with $27bn booked in Asia.

In CIB, we grew fee and other income by

18% on a constant currency basis. More than

two-fifths of this growth came from our

wholesale transaction banking business.

These strong results enable us to announce a

second interim dividend of $0.10 per share

and a further share buy-back of up to $3bn. In

total, we have announced $9.5bn in returns

to our shareholders through dividends and

share buy-backs in the first half of 2025. We

have also reduced our share count by 13%

from the first quarter of 2023.

**Economic uncertainties** 

The global economy is facing structural

challenges that are both longstanding and

newly unfolding. This is leading to economic

uncertainty and market volatility. The main

drivers are the unpredictability of broad-based

tariffs and rising fiscal vulnerabilities. This is

complicating the inflation and interest rate

outlook creating greater uncertainty.

Even before tariffs take effect, trade

disruptions are reshaping the economic

landscape. One consequence is the

adjustment of supply chains.

**Differentiated strengths** 

We are working with our customers to adapt

to this operating environment and changes in

the global economy.

First, we enter this period of economic

unpredictability from a position of strength.

We have a strong balance sheet and diverse,

recurring earnings. Our highly stable deposit

franchise is performing well. This is

underpinned by a strong capital position and a

high-quality credit portfolio. Second, the

complex dynamics of a shifting world

emphasise the advantages of our scale and

global footprint. That is why customers are

turning to us as their trusted partner.

We operate across the world's key trade

routes, including the intra-regional corridors

that have been growing fast over recent

years. We have longstanding experience of

facilitating financial flows both globally and

through the local expertise we've gained

from being so deeply rooted in economies

throughout our 160 year history. We have

5,000 trade specialists in more than 50

markets operating on both sides of trade

flows. This brings significant expertise and

real time insight to our customers.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **4** |

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| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

"We're making positive

progress in becoming a

simple, more agile,

focused organisation

built on our core

strengths. In the first

half, we continued to

execute our strategy

with discipline and each

of our four businesses

sustained momentum in

their earnings with each

growing revenue. This

gives us confidence in

our ability to deliver our

targets."

And we continue to invest in innovative

products like HSBC TradePay for Import

Duties, a targeted financing solution for our

US customers which simplifies the payment

of import duties whilst helping them optimise

working capital.

We are also well placed across many of the

world's fastest-growing wealth markets to

help customers navigate greater market

volatility as they look to protect and grow

their wealth. Our new state-of-the-art wealth

centres in our home markets of Hong Kong

and the UK, and across Asia, offer premium

venues to access personalised wealth

management services.

**Disciplined delivery of our commitments** 

We continue to move with energy and intent

in the way we deliver our strategy, the way

we find the efficiencies that optimise our

resource allocation and the way we actively

and dynamically manage our costs, capital

and target investments.

This can be seen in the momentum in our

earnings, the discipline in our execution,

and the confidence we have in our ability to

deliver our targets.

The tighter, talented leadership team I have

put in place at the Group Operating

Committee continue to sharpen the focus of

our four businesses with direct influence over

strategy and execution, alongside

accountability for driving results.

**Organisational simplification** 

Together, we are making meaningful

progress in our mission to deliver $1.5bn of

annualised savings, with actions taken in the

first half resulting in $0.7bn of these cost

saves. We remain on track to realise the full

$1.5bn in 2027.

**Reallocation from non-strategic** 

**activities** 

We are also making progress in our efforts to

generate incremental investment capacity for

our priority growth areas.

We have announced the strategic disposals

of our business in Uruguay, Bahrain retail

operations, UK life insurance subsidiary,

German custody and fund administration

businesses and our French portfolio of home

and other loans retained following the

disposal of our retail operations in France.

We have also taken action to refocus our

investment bank, making progress on the

winding down of our M&A and equity capital

markets activities in Europe, the UK and the

Americas to focus on Asia and the Middle

East where we have regional market

leadership and significant room to grow. We

have also expanded our focus on our debt

capabilities globally, comprising our Debt

Capital Markets and Leveraged and

Acquisition Finance franchises, to include our

Private Debt activities.

**Investing for growth** 

By creating this capacity, our priority is

investing for growth. In our home markets

we will expand the number of wealth centres

and enhance our wealth capabilities in Hong

Kong, which is expected to become the

world's leading cross-border wealth centre. In

the UK, we will enhance our SME coverage

and proposition.

In CIB, we will further enhance our

transaction banking capabilities, including in

global payments, trade solutions and foreign

exchange where we have leading global

propositions. We will also invest in security

services, where we have a leading position in

Asia and the Middle East.

In IWPB, we continue to hire new

relationship managers across our priority

growth markets, launch new wealth products

and invest in technology and training to

improve customer experience.

We will also modernise the bank by capturing

the opportunity of AI and generative AI, and

improve customer service through both our

mobile apps and contact centres. We will

increase productivity with tools such as

coding assistants, and improve process

efficiency in areas such as onboarding, KYC,

credit applications and many others.

**High performance culture** 

At the same time, we are instilling a culture

of excellence, leadership and accountability

throughout the bank. This culture prioritises

customer centricity and high performance. As

part of this, we have launched a bank-wide

leadership programme designed to make

culture an enabler of our ambition and

strategy.

**Thank you** 

Finally, I want to thank my valued colleagues

around the world, whose talent and drive

enable us to make a difference daily for our

customers.

I also want to thank our customers for their

partnership and trust.

Looking ahead, with firm foundations in

place, clarity in our strategy, discipline in our

execution and dynamism in our culture,

momentum continues to build.

We are confident in our ability to deliver

against our targets, including a mid-teens

RoTE, excluding notable items, for 2025,

2026 and 2027.

We are working towards achieving our

ambition of becoming the most trusted bank

globally, putting customers at the heart of

everything we do.

By doing this, we remain focused on

generating strategic growth and delivering

attractive returns for you, our shareholders.

**Georges Elhedery**

**Group CEO**

30 July 2025

---

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

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| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

Financial overview

Group financial targets

**Return on average tangible equity**

**excluding notable items (annualised)** ※

18.2%

(1H24: 17.0%)

In 1H25, RoTE (annualised) was 14.7%, a

decrease of 6.7 percentage points from

1H24.

For the purposes of measuring performance

against our Group target, we adjust RoTE to

exclude notable items.

RoTE excluding notable items (annualised)

was 18.2%, an increase of 1.2 percentage

points compared with 1H24.

🡠See pages 18 and 39 for further detail on RoTE

excluding notable items.

🡠See page 18 for further details on notable items.

**Target basis operating expenses**※

$16.2bn

(1H24: $15.8bn)

In 1H25, operating expenses of $17.0bn

increased by $0.7bn or 4%, on a reported basis.

In 1H25, target basis operating expenses grew

by 3% compared with 1H24. This primarily

reflected higher spend and investment in

technology and inflationary pressures.

Our target basis operating expenses exclude

the direct cost impact of the business

disposals in Canada and Argentina, notable

items and the impact of retranslating the prior

year results of hyperinflationary economies at

constant currency.

Our target basis operating expenses includes

the impact of simplification-related savings

associated with our reorganisation, which aims

to generate approximately $0.4bn of cost

reductions in 2025, with a commitment to an

annualised reduction of $1.5bn in our cost

base by the end of 2026.To deliver these

reductions, we plan to incur severance and

other up-front costs of $1.8bn over 2025 and

2026, which will be classified as notable items.

🡠See page 41 for a reconciliation of target basis

operating expenses to reported operating expenses.

**Capital and dividend policy**

**CET1 ratio**

14.6%

**Second interim dividend per ordinary** 

**share in respect of 2025**

## $0.10
At 30 June 2025, our CET1 capital ratio

was 14.6%, down 0.3 percentage points from

31 December 2024. This was driven by

an increase in RWAs, partly offset by an

increase in our CET1 capital through profit

generation net of distributions.

Alongside our 1H25 results, the Board has

announced a second interim dividend of

$0.10 per ordinary share.

🡠See page [2](#i98f96430fe55438e9c7c1e27f95b8fec_37) for details on our current outlook on

our financial targets.

Basis of presentation

**Constant currency performance**

Constant currency performance is computed

by adjusting reported results of comparative

periods for the effects of foreign currency

translation differences, which distort period-

on-period comparisons. We consider constant

currency performance to provide useful

information for investors by aligning internal

and external reporting, and reflecting how

management assesses period-on-period

performance.

**Notable items**

We separately disclose 'notable items', which

are components of our income statement

that management considers as outside the

normal course of business and generally non-

recurring in nature.

Certain notable items are classified as

'material notable items', a subset of notable

items. Categorisation as a material notable

item is dependent on the nature of each item

in conjunction with the financial impact on the

Group's income statement, and are excluded

from our target basis dividend payout ratio

calculation and earnings per share measure.

Material notable items in 1H25 or relevant

comparative periods relate to the following:

–Income statement impacts associated

with actions to exit or wind down certain

businesses to redeploy costs from non-

strategic activities into areas where we

have a competitive advantage and

accretive returns (reported under

'Disposals, wind-downs, acquisitions and

related costs' in notable items).

–Dilution and impairment losses on our

investment in BoCom.

–Impacts from transactions that completed

in previous periods, including the sale of

our retail banking operations in France, the

sale of our banking business in Canada and

the disposal of our business in Argentina.

**Impact of strategic transactions**

To aid the understanding of our results, we

separately disclose the impact of strategic

transactions classified as material notable

items on the results of the Group and our

business segments. In 1H25, strategic

transactions classified as material notable

items in current or relevant comparative

periods were the same as the material

notable items outlined in the preceding

'Notable items' section. The distorting impact

of the operating income statement results

related to acquisitions and disposals that

affect period-on-period comparisons, related

to our disposals in Canada and Argentina.

**Management view of revenue on a** 

**constant currency basis**

We provide breakdowns of revenue for each of

our business segments on a constant currency

basis by major product. These reflect the basis

on which revenue performance of the

businesses is assessed and managed.

We group certain products in a consistent

manner across our business segments.

Wholesale transaction banking comprises our

Global Foreign Exchange, Global Payments

Solutions ('GPS'), Global Trade Solutions ('GTS')

and Securities Services businesses. Wealth

comprises our Investment Distribution,

Insurance, Private Bank (formerly Global Private

Banking) and Asset Management businesses.

On page [7](#i98f96430fe55438e9c7c1e27f95b8fec_4468), we also provide a summarised

management view of revenue for the Group's

results, on reported foreign exchange rates,

to supplement the Group's reported revenue

performance using a product grouping, which

is used to manage and assess our segmental

performance.

🡠See page 29 for further details on the impact of

strategic transactions.

🡠See pages 26 to 27 and pages 34 to 36 for

details of notable items in our business

segments and legal entities during 1H25 and

1H24.

---

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

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| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

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Key financial metrics

---

| | | |
|:---|:---|:---|
|  | **Half-year to** | **Half-year to** |
| **Reported results** | **30 Jun 2025** | 30 Jun 2024 |
| Profit before tax ($m) | **15810** | 21556 |
| Profit after tax ($m) | **12441** | 17665 |
| Net operating income before change in expected credit losses and other credit impairment charges ('revenue') ($m) | **34122** | 37292 |
| Cost efficiency ratio (%) | **49.9** | 43.7 |
| Net interest margin (%) | **1.57** | 1.62 |
| Basic earnings per share ($) | **0.65** | 0.89 |
| Diluted earnings per share ($) | **0.65** | 0.88 |
| Dividend per ordinary share (in respect of the period) ($)<sup>1</sup> | **0.20** | 0.41 |
| **Alternative performance measures** ※ |  |  |
| Constant currency profit before tax ($m) | **15810** | 21491 |
| Constant currency revenue ($m) | **34122** | 37057 |
| Constant currency cost efficiency ratio (%) | **49.9** | 43.7 |
| Constant currency profit before tax excluding notable items ($m) | **18928** | 18006 |
| Constant currency revenue excluding notable items ($m) | **35397** | 33493 |
| Constant currency profit before tax excluding notable items and strategic transactions ($m) | **18928** | 17676 |
| Constant currency revenue excluding notable items and strategic transactions ($m) | **35397** | 32672 |
| Expected credit losses and other credit impairment charges (annualised) as % of average gross loans and advances to <br>customers (%)<br>| **0.40** | 0.20 |
| Expected credit losses and other credit impairment charges (annualised) as % of average gross loans and advances to <br>customers, including held for sale (%)<br>| **0.40** | 0.20 |
| Basic earnings per share excluding material notable items and related impacts ($) | **0.78** | 0.68 |
| Return on average ordinary shareholders' equity (annualised) (%) | **13.7** | 19.8 |
| Return on average tangible equity (annualised) (%) | **14.7** | 21.4 |
| Return on average tangible equity excluding notable items (annualised) (%) | **18.2** | 17.0 |
| Target basis operating expenses ($m) | **16179** | 15764 |
|  | **At** | **At** |
| **Balance sheet** | **30 Jun 2025** | 31 Dec 2024 |
| Total assets ($m) | **3214371** | 3017048 |
| Net loans and advances to customers ($m) | **981722** | 930658 |
| Customer accounts ($m) | **1718604** | 1654955 |
| Average interest-earning assets, year to date ($m) | **2159900** | 2099285 |
| Loans and advances to customers as % of customer accounts (%) | **57.1** | 56.2 |
| Total shareholders' equity ($m) | **192554** | 184973 |
| Tangible ordinary shareholders' equity ($m) | **159557** | 154295 |
| Net asset value per ordinary share at period end ($) | **9.88** | 9.26 |
| Tangible net asset value per ordinary share at period end ($) | **9.17** | 8.61 |
| **Capital, leverage and liquidity** |  |  |
| Common equity tier 1 capital ratio (%)<sup>2,3</sup> | **14.6** | 14.9 |
| Risk-weighted assets ($m)<sup>2,3</sup> | **886860** | 838254 |
| Total capital ratio (%)<sup>2,3</sup> | **20.1** | 20.6 |
| Leverage ratio (%)<sup>2,3</sup> | **5.4** | 5.6 |
| High-quality liquid assets (liquidity value, average) ($m)<sup>3,4</sup> | **678059** | 649210 |
| Liquidity coverage ratio (average) (%)<sup>3,4</sup> | **140** | 138 |
| **Share count** |  |  |
| Period end basic number of $0.50 ordinary shares outstanding, after deducting own shares held (millions) | **17397** | 17918 |
| Period end basic number of $0.50 ordinary shares outstanding and dilutive potential ordinary shares, after deducting own <br>shares held (millions)<br>| **17529** | 18062 |
| Average basic number of $0.50 ordinary shares outstanding, after deducting own shares held (millions) | **17646** | 18357 |

---

🡠For reconciliations of our reported results to a constant currency basis, including lists of notable items, see page 26. For detail on other alternative performance

measures, including definitions and calculations, see 'Reconciliation of alternative performance measures' on pages 38 to 41.

1Dividend per ordinary share for the half-year to 30 June 2024 includes the special dividend of $0.21 per ordinary share arising from the proceeds of the sale of our

banking business in Canada to Royal Bank of Canada.

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.

3 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.

4The liquidity coverage ratio is based on the average value of the preceding 12 months.

---

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

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| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

Income statement results

1H25 compared with 1H24 – reported results

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Movement in reported profit before tax compared with 1H24 | Movement in reported profit before tax compared with 1H24 | Movement in reported profit before tax compared with 1H24 |  |  |  |
|  | **Half-year to** | **Half-year to** | **Variance** | **Variance** | **Variance** |
| **Reported results** |  |  | **1H25 vs. 1H24** | **1H25 vs. 1H24** | **1H25 vs. 1H24** |
| **Reported results** | **30 Jun 2025** | 30 Jun 2024 |  |  | **of which strategic** <br>**transactions**<sup>1</sup><br>|
| **Reported results** | **$m** | $m | **$m** | **%** | **$m** |
| **Revenue** | **34122** | 37292 | **(3170)** | **(9)** | **(4653)** |
| – of which: net interest income ('NII') | **16821** | 16911 | **(90)** | **(1)** | **(1222)** |
| ECL | **(1941)** | (1066) | **(875)** | **(82)** | **96** |
| **Net operating income** | **32181** | 36226 | **(4045)** | **(11)** | **(4557)** |
| Total operating expenses | **(17022)** | (16296) | **(726)** | **(4)** | **311** |
| **Operating profit/(loss)** | **15159** | 19930 | **(4771)** | **(24)** | **(4246)** |
| Share of profit in associates and joint ventures less impairment | **651** | 1626 | **(975)** | **(60)** | **—** |
| **Profit before tax** | **15810** | 21556 | **(5746)** | **(27)** | **(4246)** |
| Tax income/(expense) | **(3369)** | (3891) | **522** | **13** |  |
| **Profit/(loss) after tax** | **12441** | 17665 | **(5224)** | **(30)** |  |
| **Revenue excluding notable items** | **35397** | 33721 | **1676** | **5** |  |
| **Profit before tax excluding notable items** | **18928** | 18067 | **861** | **5** |  |

---

1For details, see 'Impact of strategic transactions' on page 29.

---

| | | |
|:---|:---|:---|
| Notable items |  |  |
|  | **Half-year to** | **Half-year to** |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| **Revenue** |  |  |
| Disposals, wind-downs, acquisitions and related costs | **(139)** | 3571 |
| Dilution loss of interest in BoCom associate | **(1136)** |  |
| Currency translation on revenue notable items | **—** | (7) |
| **Operating expenses** |  |  |
| Disposals, wind-downs, acquisitions and related costs | **(227)** | (101) |
| Restructuring and other related costs | **(616)** | 19 |
| Currency translation on operating expenses notable items | **—** | 2 |
| **Associates and joint ventures** |  |  |
| Impairment losses of interest in BoCom associate | **(1000)** |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Supplementary management view of revenue |  |  |  |  |  |
|  | **Half-year to** | **Half-year to** | **1H25 vs. 1H24** | **1H25 vs. 1H24** | **1H25 vs. 1H24** |
|  | **30 Jun 2025** | 30 Jun 2024 |  |  | **of which strategic** <br>**transactions**<sup>1</sup><br>|
|  | **$m** | $m | **$m** | **%** | **$m** |
| **Revenue** | **34122** | 37292 | **(3170)** | **(9)** | **(4653)** |
| **Banking NII**<sup>2</sup> | **21313** | 22204 | **(891)** | **(4)** | **(1264)** |
| **Fee and other income** | **12809** | 15088 | **(2279)** | **(15)** | **(3389)** |
| – Notable items | **(1275)** | 3571 | **(4846)** | **>(100)** | **(3873)** |
| – Wealth  | **4564** | 3741 | **823** | **22** | **(85)** |
| – Wholesale Transaction Banking  | **5637** | 5226 | **411** | **8** | **(136)** |
| – Other | **3883** | 2550 | **1333** | **52** | **705** |

---

1For details, see 'Impact of strategic transactions' on page 29.

2For a reconciliation of banking NII to reported NII, see page 21.

1H25 compared with 1H24 – constant currency basis

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Movement in profit before tax compared with 1H24 – on a constant currency basis | Movement in profit before tax compared with 1H24 – on a constant currency basis | Movement in profit before tax compared with 1H24 – on a constant currency basis |  |  |  |
|  | **Half-year to** | **Half-year to** | **1H25 vs. 1H24** | **1H25 vs. 1H24** | **1H25 vs. 1H24** |
|  | **30 Jun 2025** | 30 Jun 2024 |  |  | **of which strategic** <br>**transactions**<sup>1</sup><br>|
| **Results – on a constant currency basis** ※ | **$m** | $m | **$m** | **%** | **$m** |
| Revenue | **34122** | 37057 | **(2935)** | **(8)** | **(4695)** |
| ECL | **(1941)** | (993) | **(948)** | **(95)** | **64** |
| Total operating expenses | **(17022)** | (16192) | **(830)** | **(5)** | **300** |
| **Operating profit** | **15159** | **19872** | **(4713)** | **(24)** | **(4331)** |
| Share of profit in associates and joint ventures less <br>impairment<br>| **651** | 1619 | **(968)** | **(60)** | **—** |
| **Profit before tax** | **15810** | 21491 | **(5681)** | **(26)** | **(4331)** |

---

1For details, see 'Impact of strategic transactions' on page 29.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **8** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

1H25 compared with 1H24 – performance commentary

**Profit before tax**

Reported profit before tax of $15.8bn

was $5.7bn lower than in 1H24, primarily

reflecting the impact of notable items. These

included a dilution loss of $1.1bn and the

recognition of an impairment of $1.0bn

relating to our associate BoCom in 1H25.In

addition, there was an adverse impact from

the non-recurrence of a $4.8bn gain in 1H24

on the disposal of our banking business in

Canada, partly offset by a loss of $1.2bn in

1H24 on classification of our business in

Argentina as held for sale.

On a constant currency basis, profit before

tax of $15.8bn was $5.7bn lower than in

1H24, and excluding notable items it

increased by $0.9bn or 5%.

Reported profit after tax of $12.4bn was

$5.2bn or 30% lower compared with 1H24.

**Revenue**

Reported revenue of $34.1bn was $3.2bn or

9% lower, reflecting a net adverse

movement in notable items of $4.8bn,

primarily relating to the non-recurrence of net

gains in 1H24 related to our disposals in

Canada and Argentina. It also included a

dilution loss of $1.1bn following the

completion of BoCom's capital issuance,

which reduced our interest from 19.03% to

16.00%.

Revenue excluding notable items increased,

reflecting higher fee and other income in

Wealth. There were strong performances in

Insurance, due to a higher contractual service

margin ('CSM') release, as well as growth in

our Private Bank and investment distribution

from higher customer activity. Fee and other

income rose in Wholesale Transaction

Banking, particularly in Global Foreign

Exchange from elevated market volatility, as

well as in Debt and Equity Markets.

NII fell by $0.1bn compared with 1H24,

including an adverse impact of foreign

currency translation differences of $0.4bn

and an adverse impact of $1.3bn from

business disposals in Canada and Argentina.

Excluding these factors, NII increased as the

benefit of our structural hedge and lower

costs of funding offset the impact of lower

market interest rates on asset re-pricing. The

fall in interest rates reduced the funding costs

of the trading book, which resulted in a fall in

banking NII of $0.9bn to $21.3bn.

On a constant currency basis, revenue

decreased by $2.9bn or 8% and banking NII

fell by $0.5bn.

**ECL**

Reported ECL of $1.9bn were $0.9bn or 82%

higher than in 1H24.The charge in 1H25

included charges of $0.5bn related to the

Hong Kong CRE sector. This reflected

updates to our models used for ECL

calculations, which had an impact of $0.1bn,

an increase in allowances for new defaulted

exposures, as well as the over-supply of non-

residential properties putting continued

downward pressure on rental and capital

values. The 1H25 period also included

allowances to reflect heightened uncertainty

and a deterioration in the forward economic

outlook due to geopolitical tensions and

higher trade tariffs.In 1H24, the ECL charge

benefited from allowance releases, mainly in

the UK and from a recovery relating to a

single CIB client. On a constant currency

basis, ECL charges were $0.9bn higher than

in 1H24.

**Operating expenses** 

Reported operating expenses of $17.0bn

were $0.7bn or 4% higher.The increase was

driven by $0.6bn of restructuring and other

related costs in 1H25 related to our

organisational simplification, mainly

severance costs that are classified as notable

items.It also included an increase of $0.1bn

related to strategic transactions, including

asset impairments in Europe.In addition,

growth included higher spend and

investment in technology and the impacts of

inflation.These increases were partly offset

by reductions following the completion of

business disposals in Canada and Argentina,

the impact of our restructuring activities, and

a favourable impact from foreign currency

translation differences of $0.1bn.

On a constant currency basis, operating

expenses increased by $0.8bn or 5%. Target

basis operating expenses were $0.4bn or 3%

higher than in 1H24 due to higher spend and

investment in technology and the impacts of

inflation.

**Share of profit from associates and JVs** 

**less impairment**

Reported share of profit from associates and

joint ventures less impairment of $0.7bn was

$1.0bn or 60% lower, due to an impairment

loss of $1.0bn recognised on BoCom

following our value-in-use assessment made

at 30 June 2025, more details of which can

be found in Note 10 on the interim

condensed consolidated financial statements.

This was partly offset by an increase in the

share of profit from Saudi Awwal Bank

('SAB').

**Tax expense**

Tax in 1H25 was a charge of $3.4bn,

representing an effective tax rate of 21.3%,

which compared with a charge of $3.9bn in

1H24, representing an effective tax rate of

18.1%. Both periods included certain material

notable items that were not subject to tax,

excluding which the effective rate for 1H25

was 19.7%, compared with 21.4% for 1H24.

🡠For further details on tax notable items,

see page 22.

**Second interim dividend for 2025**

On 30 July 2025, the Board announced a

second interim dividend for 2025 of $0.10 per

ordinary share. For further details, see

2Q25 compared with 2Q24 – reported results

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Movement in reported profit before tax compared with 2Q24 | Movement in reported profit before tax compared with 2Q24 | Movement in reported profit before tax compared with 2Q24 |  |  |  |  |
| **Reported results** | **Quarter ended** | **Quarter ended** | **Quarter ended** | **2Q25 vs. 2Q24** | **2Q25 vs. 2Q24** | **2Q25 vs. 2Q24** |
| **Reported results** | **30 Jun 2025** | 30 Jun 2024 | 31 Mar 2025 |  |  | **of which strategic** <br>**transactions**<sup>1</sup><br>|
| **Reported results** | **$m** | $m | $m | **$m** | **%** | **$m** |
| **Revenue** | **16473** | 16540 | 17649 | **(67)** | **—** | **(165)** |
| – of which: net interest income ('NII') | **8519** | 8258 | 8302 | **261** | **3** | **(434)** |
| ECL | **(1065)** | (346) | (876) | **(719)** | **>(100)** | **(5)** |
| **Net operating income** | **15408** | 16194 | 16773 | **(786)** | **(5)** | **(170)** |
| Total operating expenses | **(8920)** | (8145) | (8102) | **(775)** | **(10)** | **(73)** |
| **Operating profit/(loss)** | **6488** | 8049 | 8671 | **(1561)** | **(19)** | **(243)** |
| Share of profit in associates and joint ventures <br>less impairment<br>| **(162)** | 857 | 813 | **(1019)** | **>(100)** | **—** |
| **Profit before tax** | **6326** | 8906 | 9484 | **(2580)** | **(29)** | **(243)** |
| Tax income/(expense) | **(1455)** | (2078) | (1914) | **623** | **30** |  |
| **Profit/(loss) after tax** | **4871** | 6828 | 7570 | **(1957)** | **(29)** |  |

---

1 For details, see 'Impact of strategic transactions' on page 29.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

---

| | | | |
|:---|:---|:---|:---|
| Notable items | Notable items | Notable items | Notable items |
|  | **Quarter ended** | **Quarter ended** | **Quarter ended** |
|  | **30 Jun 2025** | 30 Jun 2024 | 31 Mar 2025 |
|  | **$m** | $m | $m |
| **Revenue** |  |  |  |
| Disposals, wind-downs, acquisitions and related costs | **(48)** | (161) | (91) |
| Dilution loss of interest in BoCom associate | **(1136)** |  |  |
| Currency translation on revenue notable items | **—** |  | (1) |
| **Operating expenses** |  |  |  |
| Disposals, wind-downs, acquisitions and related costs | **(177)** | (38) | (50) |
| Restructuring and other related costs | **(475)** | 6 | (141) |
| Currency translation on operating expenses notable items | **—** | 2 |  |
| **Associates and joint ventures** |  |  |  |
| Impairment losses of interest in BoCom associate | **(1000)** |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Supplementary management view of revenue | Supplementary management view of revenue | Supplementary management view of revenue | Supplementary management view of revenue | Supplementary management view of revenue | Supplementary management view of revenue | Supplementary management view of revenue |
|  | **Quarter ended** | **Quarter ended** | **Quarter ended** | **2Q25 vs. 2Q24** | **2Q25 vs. 2Q24** | **2Q25 vs. 2Q24** |
|  | **30 Jun 2025** | 30 Jun 2024 | 31 Mar 2025 |  |  | **of which strategic** <br>**transactions**<sup>1</sup><br>|
|  | **$m** | $m | $m | **$m** | **%** | **$m** |
| **Revenue** | **16473** | 16540 | 17649 | **(67)** | **—** | **(165)** |
| **Banking NII**<sup>2</sup> | **10714** | 10938 | 10599 | **(224)** | **(2)** | **(448)** |
| **Fee and other income** | **5759** | 5602 | 7050 | **157** | **3** | **283** |
| – Notable items | **(1184)** | (161) | (91) | **(1023)** | **>(100)** | **(43)** |
| – Wealth  | **2274** | 1848 | 2290 | **426** | **23** | **(23)** |
| – Wholesale Transaction Banking  | **2786** | 2629 | 2851 | **157** | **6** | **(65)** |
| – Other | **1883** | 1286 | 2000 | **597** | **46** | **414** |

---

1For details, see 'Impact of strategic transactions' on page 29.

2For a reconciliation of banking NII to reported NII, see page 21.

2Q25 compared with 2Q24 – constant currency basis

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Movement in profit before tax compared with 2Q24 – constant currency basis | Movement in profit before tax compared with 2Q24 – constant currency basis | Movement in profit before tax compared with 2Q24 – constant currency basis | Movement in profit before tax compared with 2Q24 – constant currency basis |  |  |  |
|  | **Quarter ended** | **Quarter ended** | **Quarter ended** | **2Q25 vs. 2Q24** | **2Q25 vs. 2Q24** | **2Q25 vs. 2Q24** |
|  | **30 Jun 2025** | 30 Jun 2024 | 31 Mar 2025 |  |  | **of which strategic** <br>**transactions**<sup>1</sup><br>|
| **Results – on a constant currency basis** ※ | **$m** | $m | $m | **$m** | **%** | **$m** |
| Revenue | **16472** | 16698 | 18132 | **(226)** | **(1)** | **(276)** |
| ECL | **(1064)** | (320) | (899) | **(744)** | **>(100)** | **(21)** |
| Total operating expenses | **(8920)** | (8247) | (8355) | **(673)** | **(8)** | **(38)** |
| **Operating profit** | **6488** | 8131 | 8878 | **(1643)** | **(20)** | **(335)** |
| Share of profit in associates and joint ventures <br>less impairment<br>| **(162)** | 858 | 817 | **(1020)** | **>(100)** | **—** |
| **Profit before tax** | **6326** | 8989 | 9695 | **(2663)** | **(30)** | **(335)** |

---

1For details, see 'Impact of strategic transactions' on page 29.

2Q25 compared with 2Q24 – performance commentary

**Profit before tax**

Reported profit before tax of $6.3bn was

$2.6bn, or 29%, lower than in 2Q24, primarily

reflecting a dilution loss of $1.1bn and the

recognition of an impairment of $1.0bn on

our associate BoCom.

On a constant currency basis, profit before

tax was $2.7bn lower than in 2Q24, and

excluding notable items it was broadly stable.

**Revenue**

Reported revenue decreased by $0.1bn to

$16.5bn, which included an adverse impact

following the disposal of our business in

Argentina and a $1.1bn dilution loss following

the completion of BoCom's capital issuance.

The reduction was partly offset by higher fee

and other income in Wealth. There were

strong performances in Insurance, due to a

higher CSM release, as well as growth in our

Private Bank and investment distribution from

higher customer activity. Fee and other

income also increased in Wholesale

Transaction Banking, particularly in Global

Foreign Exchange from elevated market

volatility, as well as in Debt and Equity

Markets.

NII increased by $0.3bn compared with

2Q24.The rise reflected the benefit of our

structural hedge, and lower costs of funding,

partly offset by reductions due to our business

disposal in Argentina and the impact of lower

market interest rates on asset re-pricing,

particularly due to the fall in HIBOR in 2Q25.

The fall in interest rates reduced the funding

costs of the trading book by $0.5bn, resulting

in a fall of $0.2bn in banking NII to $10.7bn.

On a constant currency basis, revenue

decreased by $0.2bn or 1%. Banking NII fell

by $0.2bn on a constant currency basis.

**ECL**

Reported ECL in 2Q25 of $1.1bn increased

by $0.7bn compared with 2Q24.The charge

in 2Q25 included charges of $0.4bn related to

the Hong Kong CRE sector. This reflected

updates to our models used for ECL

calculations, which had an impact of $0.1bn,

an increase in allowances for new defaulted

exposures, as well as the over-supply of non-

residential properties putting continued

downward pressure on rental and capital

values. In 2Q24, the ECL charge benefited

from a release of allowances in the UK and

from a recovery relating to a single CIB client.

**Operating expenses**

Reported operating expenses of $8.9bn were

$0.8bn or 10% higher.There were $0.5bn of

costs in 2Q25 related to our organisational

simplification, mainly severance costs, and

$0.2bn related to strategic disposals and

activities to redeploy costs into areas of

strategic focus, including asset impairments in

Europe.In addition, growth included higher

spend and investment in technology, the

impacts of inflation and an adverse impact from

foreign currency translation differences. These

increases were partly offset by a favourable

impact from the disposal of our business in

Argentina.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **10** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

On a constant currency basis, operating

expenses increased by $0.7bn or 8%. Target

basis operating expenses were $0.1bn or 2%

higher than in 2Q24, primarily due to higher

spend and investment in technology and the

impacts of inflation.

**Share of profit from associates and JVs** 

**less impairment**

Reported share of profit from associates and

joint ventures less impairment of $0.2bn was

$1.0bnlower, due to the recognition of an

impairment of $1.0bn following an impairment

test on the carrying value of the Group's

investment in BoCom.

**Tax expense**

Tax in 2Q25 was a charge of $1.5bn,

representing an effective tax rate of 23.0%,

which compared with a charge of $2.1bn in

2Q24, representing an effective tax rate of

23.3%. Both periods included certain material

notable items that were not subject to tax,

excluding which the effective rate for 2Q25

was 19.2%. The effective tax rate for 2Q24

was increased by 2.5% by charges in respect

of prior periods.

🡠For further details on tax notable items, see

Balance sheet and capital

**Balance sheet strength**

Total assets of $3.2tn were $197bn higher

than at 31 December 2024 on a reported

basis, and included a favourable impact of

foreign currency translation differences of

$136bn.On a constant currency basis, total

assets increased by $62bn, driven by growth

in financial investments balances, higher

reverse repurchase agreements and higher

other asset balances. These were partly

offset by lower cash and balances at central

banks and a decrease in derivative assets.

Loans and advances to customers as a

percentage of customer accounts were 57%,

compared with 56% at 31 December 2024.

🡠For detailed balance sheet commentary, see

**Distributable reserves**

The distributable reserves of HSBC Holdings

at 30 June 2025 were $14.1bn compared

with $28.3bn at 31 December 2024. The

decrease was primarily driven by dividends

on ordinary shares and additional tier 1

coupon distributions of $8.7bn and share buy-

back payments of $5.0bn. The profits

generated in HSBC Holdings of $9.2bn in

1H25 will be reflected in the distributable

reserves at the next relevant accounts. On

24 June 2025, court approval was obtained

for HSBC Holdings to increase its

distributable reserves by way of the

cancellation of $16.6bn standing to the credit

of its share premium and capital redemption

reserves, which took effect on 10 July 2025.

This will also increase our distributable

reserves at the next relevant accounts, giving

us further flexibility to deliver shareholder

returns over the coming years.

**Capital and liquidity position**

Our CET1 ratio at 30 June 2025 was 14.6%,

down from 14.9% at 31 December 2024.

The average high-quality liquid assets

('HQLA') we held was $678.1bn. This

excludes HQLA in legal entities that are not

transferable due to local restrictions. For

further details, see page 70.

🡠For further details, see 'Capital overview' on

ESG overview

Our approach

Our approach to ESG is focused on creating

long-term value for our customers and wider

stakeholders. We focus our efforts on three

areas: the transition to net zero, building

inclusion and resilience, and acting

responsibly.

**Transition to net zero**

Supporting the transition to net zero is a key

priority for HSBC. In 2020, we set an ambition

to become a net zero bank by 2050. We are

committed to supporting our customers to

help address their transition needs, pursuing

opportunities in the transition that help enable

value creation for our shareholders, and

leveraging our expertise to support the

transition and clean energy growth at scale.

We seek to do this against a backdrop of

increasing global demand for energy and

increasing focus on energy security, resilience

and affordability, alongside diverging national

agendas and the more complex regulatory

environment in which we operate.

As mentioned in our Annual Report and

Accounts 2024, we are conducting a review of

our 2030 interim financed emission targets

and associated policies as part of the ongoing

review of our net zero transition plan. While

this is complex analysis that will take time, we

are aiming to finalise our review in the second

half of 2025.

As part of our ambition to support customers

in their transition to net zero and a sustainable

future, we aim to provide and facilitate $750bn

to $1tn of sustainable finance and investments

by 2030. In 1H25, we provided and facilitated

$54.1bn of sustainable finance and

investments, bringing our cumulative amount

since 1 January 2020 to $447.7bn.

**Build inclusion and resilience**

Our global inclusion strategy is aimed at

enabling HSBC to be an organisation that

reflects the communities we serve, and

encourages colleagues to embrace diverse

perspectives.

We continue to offer colleagues the

opportunity to develop their skills while

ensuring we build a pipeline of talent to

support our strategic priorities. In 1H25, we

delivered targeted risk leadership training for

our senior leaders and continued to provide

specialised learning for high-risk roles in areas

such as anti-money laundering, sanctions,

bribery and corruption.

We seek to equip our colleagues with the

knowledge and skills to understand and use

artificial intelligence ('AI') technologies

responsibly. As the landscape evolves, our AI

Academy,which helps to support beginner to

advanced skills development for colleagues, is

expected to grow.

We seek to provide an inclusive and

accessible banking experience for our

customers. We do so by providing tools to

help them manage their finances and make

the most of their money. We engage with the

communities we serve through philanthropic

giving, disaster relief and volunteering.

**Act responsibly**

Our conduct approach guides us to do the

right thing and focus on the impact we have

on our customers and the financial markets in

which we operate. It complements our

purpose and values and, together with our

policies and procedures, provides an

enterprise-wide, outcome-focused framework.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

Business segments

Hong Kong

Our Hong Kong business has a leading market position in our home market of Hong Kong. It comprises Retail

Banking and Wealth and Commercial Banking of HSBC Hong Kong and Hang Seng Bank.

**Contribution to Group profit before tax** ※

![15942918602839](hsbc-20250630_g2.gif)

$4.7bn

Calculation is based on profit before tax of our

business segments excluding Corporate Centre.

**Divisional highlights** 

---

| | |
|:---|:---|
| 45% | 9% |
| Growth in Wealth fee and other income <br>compared with 1H24, on a constant <br>currency basis.<br>| Growth in deposits compared with 30 June <br>2024, on a constant currency basis.<br>|

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis |
|  | **Half-year to** | **Half-year to** | **1H25 vs. 1H24** | **1H25 vs. 1H24** | **1H25 vs. 1H24** |
|  | **30 Jun 2025** | 30 Jun 2024 |  |  | **of which strategic** <br>**transactions**<sup>5</sup><br>|
|  | **$m** | $m | **$m** | **%** | **$m** |
| **Banking NII**<sup>1</sup> | **5875** | 5929 | **(54)** | **(1)** | **—** |
| **Fee and other income**<sup>2</sup> | **1973** | 1503 | **470** | **31** | **—** |
| **– Retail Banking and Wealth** | **1362** | 939 | **423** | **45** | **—** |
| – Retail Banking | **176** | 155 | **21** | **14** | **—** |
| – Wealth | **1101** | 760 | **341** | **45** | **—** |
| – Other<sup>3</sup> | **85** | 24 | **61** | **>100** |  |
| **– Commercial Banking** | **611** | 564 | **47** | **8** | **—** |
| – Wholesale Transaction Banking | **361** | 346 | **15** | **4** | **—** |
| – Credit and Lending | **43** | 44 | **(1)** | **(2)** | **—** |
| – Other<sup>3</sup> | **207** | 174 | **33** | **19** | **—** |
| **Revenue excluding notable items** | **7848** | 7432 | **416** | **6** | **—** |
| Notable items | **—** |  | **—** | **N/A** | **—** |
| **Revenue** | **7848** | 7432 | **416** | **6** | **—** |
| **RoTE (annualised)**<sup>4</sup> **%** | **34.9** | 38.4 |  |  |  |

---

1For a description of how we derive banking NII, see page 21. In the Hong Kong business, there are no adjustments to NII to derive banking NII.

2For supplementary analysis of fee and other income, see page 28.

3Includes revenue from Markets Treasury. It also includes other non-product-specific income and notional tax credits.

4For details of our RoTE calculation by business segment, see page 40.

5Impact of strategic transactions classified as material notable items. For further details, see 'Strategic transactions supplementary analysis' on page 29.

**Financial performance** 

Profit before tax of $4.7bn was $0.1bn or 2%

lower than in 1H24 on a constant currency

basis.

Revenue of $7.8bn was $0.4bn or 6% higher

on a constant currency basis.

Banking NII of $5.9bn decreased by $0.1bn or

1%. The decrease was due to the impact of

lower margins, particularly following the

reduction in HIBOR during the period, and

from lower lending balances.This was partly

offset by deposit balance growth of $43bn or

9% since 30 June 2024 and a lower cost of

funding as interest rates fell.

Fee and other income of $2.0bn was up by

$0.5bn or 31%.The growth was mainly

driven by an increase of $0.3bn or 45% in

Wealth from a strong performance in

investment distribution due to higher client

activity in the context of market volatility.

ECL of $0.9bn in 1H25 increased by $0.5bn

compared with 1H24 on a constant currency

basis. The 1H25 period included charges

related to the Hong Kong CRE sector. This

reflected updates to our models used for ECL

calculations, which had an impact of $0.1bn,

an increase in allowances for new defaulted

exposures, as well as the over-supply of non-

residential properties putting continued

downward pressure on rental and capital

values.There were also charges due to a

deterioration in the forward economic outlook

due to geopolitical tensions and higher trade

tariffs.

Operating expenses of $2.3bn were $30m

lower on a constant currency basis, reflecting

the impact of lower operations costs. This

was broadly offset by increases reflecting

higher spend on technology, and the impact

of inflation.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **12** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

UK

Our UK business has a leading market position in our home market of the UK. It comprises UK Retail Banking and

Wealth (including first direct and M&S Bank) and UK Commercial Banking, including HSBC Innovation Bank.

**Contribution to Group profit before tax** ※

![125894081385501](hsbc-20250630_g3.gif)

$3.3bn

Calculation is based on profit before tax of our

business segments excluding Corporate Centre.

**Divisional highlights** 

---

| |
|:---|
| 4% |
| Growth in loans and advances to customers <br>compared with 1H24, on a constant currency <br>basis.<br>Growth in banking NII compared with <br>1H24, on a constant currency basis.<sup>1</sup>※<br>|

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis |
|  | **Half-year to** | **Half-year to** | **1H25 vs. 1H24** | **1H25 vs. 1H24** | **1H25 vs. 1H24** |
|  | **30 Jun 2025** | 30 Jun 2024 |  |  | **of which strategic** <br>**transactions**<sup>5</sup><br>|
|  | **$m** | $m | **$m** | **%** | **$m** |
| **Banking NII**<sup>1</sup> | **5306** | 5026 | **280** | **6** | **—** |
| **Fee and other income**<sup>2</sup> | **922** | 968 | **(46)** | **(5)** | **—** |
| **– Retail Banking and Wealth** | **316** | 355 | **(39)** | **(11)** | **—** |
| – Retail Banking | **134** | 120 | **14** | **12** | **—** |
| – Wealth | **175** | 205 | **(30)** | **(15)** | **—** |
| – Other<sup>3</sup> | **7** | 30 | **(23)** | **(77)** |  |
| **– Commercial Banking** | **606** | 613 | **(7)** | **(1)** | **—** |
| – Wholesale Transaction Banking | **444** | 450 | **(6)** | **(1)** | **—** |
| – Credit and Lending | **111** | 103 | **8** | **8** | **—** |
| – Other<sup>3</sup> | **51** | 60 | **(9)** | **(15)** | **—** |
| **Revenue excluding notable items** | **6228** | 5994 | **234** | **4** | **—** |
| Notable items | **—** |  | **—** | **N/A** | **—** |
| **Revenue** | **6228** | 5994 | **234** | **4** | **—** |
| **RoTE (annualised)**<sup>4</sup> **%** | **23.4** | 27.1 |  |  |  |

---

1For a description of how we derive banking NII, see page 21. In the UK business, there are no adjustments to NII to derive banking NII.

2For supplementary analysis of fee and other income, see page 28.

3Includes revenue from Markets Treasury. It also includes other non-product-specific income, gains/(losses) on property disposals and notional tax credits.

4For details of our RoTE calculation by business segment, see page 40.

5Impact of strategic transactions classified as material notable items. For further details, see 'Strategic transactions supplementary analysis' on page 29.

**Financial performance**

Profit before tax of $3.3bn was $0.3bn or 7%

lower than in 1H24 on a constant currency

basis.

Revenue of $6.2bn was $0.2bn or 4% higher

on a constant currency basis.

Banking NII of $5.3bn increased by $0.3bn or

6%, despite reductions in interest rates. This

increase was driven by the continued benefit

of our structural hedge, as well as higher

lending balances across mortgages and

corporate lending and from growth in deposit

balances, in line with the increase in the

overall market size.These increases were

partly offset by margin compression on

mortgages, while customer migration to

interest-bearing deposit accounts continued

to stabilise.

Fee and other income of $0.9bn fell by 5%. In

Retail Banking and Wealth, fee and other

income decreased due to lower fees on

foreign exchange transactions in Wealth.

ECL of $0.3bn in 1H25 increased by $0.3bn

compared with 1H24 on a constant currency

basis. The increase mainly reflected a more

normalised level of ECL in 1H25 and the non-

recurrence of releases against retail

exposures in 1H24.

Operating expenses of $2.6bn increased by

$0.2bn or 9% on a constant currency basis.

The increase primarily reflected higher

investment spend in technology, including on

operational resilience, partly mitigated by

continued cost discipline.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

Corporate and Institutional Banking

Our CIB business is a market leader in cross-border transaction banking and capital markets. It integrates our

Commercial Banking business (outside of the UK and Hong Kong) with our Global Banking and Markets business.

**Contribution to Group profit before tax** ※

![125894081384975](hsbc-20250630_g4.gif)

$6.4bn

Calculation is based on profit before tax of our

business segments excluding Corporate Centre.

**Divisional highlights** 

---

| | |
|:---|:---|
| 18% | 16.9% |
| Growth in fees and other income compared <br>with 1H24, on a constant currency basis.<br>| RoTE up 1.3 percentage points compared <br>with 1H24. ※<br>|

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis |
|  | **Half-year to** | **Half-year to** | **1H25 vs. 1H24** | **1H25 vs. 1H24** | **1H25 vs. 1H24** |
|  | **30 Jun 2025** | 30 Jun 2024 |  |  | **of which strategic** <br>**transactions**<sup>5</sup><br>|
|  | **$m** | $m | **$m** | **%** | **$m** |
| **Banking NII**<sup>1</sup> | **7014** | 7314 | **(300)** | **(4)** | **(602)** |
| **Fee and other income**<sup>2</sup> | **7103** | 6033 | **1070** | **18** | **106** |
| – Wholesale Transaction Banking | **4831** | 4390 | **441** | **10** | **(112)** |
| – Investment Banking | **542** | 472 | **70** | **15** | **(3)** |
| – Debt and Equity Markets | **1522** | 1153 | **369** | **32** | **30** |
| – Wholesale Credit and Lending | **278** | 304 | **(26)** | **(9)** | **(51)** |
| – Other<sup>3</sup> | **(70)** | (286) | **216** | **76** | **241** |
| **Revenue excluding notable items** | **14117** | 13347 | **770** | **6** | **(496)** |
| Notable items | **—** | (14) | **14** | **1** | **—** |
| **Revenue** | **14117** | 13333 | **784** | **6** | **(496)** |
| **RoTE (annualised)**<sup>4</sup> **%** | **16.9** | 15.6 |  |  |  |

---

1For a description of how we derive banking NII, see page 21. In CIB, there are no adjustments to NII to derive banking NII. The internal funding costs of trading

and fair value net assets are recorded in 'fee and other income'. On consolidation, this funding is eliminated in Corporate Centre. In 1H25, this funding cost was

$4.7bn (1H24: $5.5bn).

2For supplementary analysis of fee and other income, see page 28.

3Includes allocated revenue from Markets Treasury and hyperinflationary impacts. It also includes notional tax credits.

4For details of our RoTE calculation by business segment, see page 40.

5Impact of strategic transactions classified as material notable items. For further details, see 'Strategic transactions supplementary analysis' on page 29.

**Financial performance**

Profit before tax of $6.4bn was $0.2bn or 4%

higher than in 1H24 on a constant currency

basis.

Revenue of $14.1bn was $0.8bn or 6% higher

on a constant currency basis, including the

adverse impact of the disposals of our

businesses in Canada and Argentina.

Banking NII of $7.0bn decreased by $0.3bn or

4%, mainly due to a reduction of $0.6bn from

business disposals. Banking NII reflected the

impact of lower interest rates in GPS, partly

offset by a 5% growth in average balances.

Banking NII increased in GTS due to an

increase of 10% in average balances, mainly

in our legal entities in Asia following growth in

client demand. There was also a rise in other

NII, in part from the benefit of our structural

hedge on capital held in the business.

Fee and other income of $7.1bn increased by

$1.1bn or 18%.

–In Wholesale Transaction Banking, fee and

other income increased by $0.4bn or 10%,

mainly due to higher income in Global

Foreign Exchange from elevated market

volatility in 1H25.

–In Debt and Equity Markets, fee and other

income was up $0.4bn or 32%. Growth in

Debt Markets was driven by US dollar

structured note issuance due to higher

interest rates. Equities benefited from new

client onboarding in prime finance and

robust institutional financing demand. Equity

derivatives benefited from the rise in market

volatility due to macroeconomic uncertainty.

–In Other, fee and other income increased by

$0.2bn, largely due to the non-recurrence of

adverse hyperinflationary impacts in

Argentina.

ECL of $0.3bn in 1H25 increased by $0.1bn

compared with 1H24 on a constant currency

basis.The increase included charges in

Europe compared with releases in 1H24

relating to a single client.

Operating expenses of $7.5bn were $0.4bn or

6% higher than in 1H24 on a constant

currency basis. The increase included

restructuring and other related costs, mainly

the wind-down of M&A and equity capital

markets activities in the UK, Europe and the

US, and related impairments in Germany. It

also reflected higher spend and investment in

technology, and inflationary impacts.These

increases were partly mitigated by cost

reductions from our organisational

simplification and the impact of business

disposals in Canada and Argentina.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **14** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

International Wealth and Premier Banking

Our IWPB business comprises Premier banking outside of Hong Kong and the UK, our Private Bank, Asset

Management and Insurance businesses.

**Contribution to Group profit before tax** ※

![125894081399342](hsbc-20250630_g5.gif)

$2.1bn

Calculation is based on profit before tax of our

business segments excluding Corporate Centre.

**Divisional highlights** 

---

| | |
|:---|:---|
| 19% | 54% |
| Growth in wealth fees and other <br>income compared with 1H24, on <br>a constant currency basis.<br>| Growth in Insurance manufacturing new <br>business CSM compared with 1H24, up <br>$0.7bn. <br>|

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis | Management view of revenue – on a constant currency basis |
|  | **Half-year to** | **Half-year to** | **1H25 vs. 1H24** | **1H25 vs. 1H24** | **1H25 vs. 1H24** |
|  | **30 Jun 2025** | 30 Jun 2024 |  |  | **of which strategic** <br>**transactions**<sup>4</sup><br>|
|  | **$m** | $m | **$m** | **%** | **$m** |
| **Banking NII**<sup>1</sup> | **3440** | 3913 | **(473)** | **(12)** | **(420)** |
| **Fee and other income** | **3628** | 2965 | **663** | **22** | **95** |
| – Retail Banking | **314** | 383 | **(69)** | **(18)** | **(24)** |
| – Wealth | **3288** | 2766 | **522** | **19** | **(74)** |
| – Other<sup>2</sup> | **26** | (184) | **210** | **>100** | **193** |
| **Revenue excluding notable items** | **7068** | 6878 | **190** | **3** | **(325)** |
| Notable items | **(57)** | 55 | **(112)** | **>(100)** | **(113)** |
| **Revenue** | **7011** | 6933 | **78** | **1** | **(438)** |
| **RoTE (annualised)**<sup>3</sup> **%** | **16.8** | 17.6 |  |  |  |

---

1For a description of how we derive banking NII, see page 21. Banking NII in IWPB is computed by deducting third-party NII in our insurance business from total

IWPB NII, which was $0.2bn in 1H25 (1H24: $0.2bn). Total Insurance NII is presented in 'fee and other income' in Wealth.

2Includes allocated revenue from Markets Treasury and hyperinflationary impacts. It also includes other non-product-specific income.

31H25 Included a 1.1 percentage point adverse impact from notable items. For details of our RoTE calculation by business segment, see page 40.

4Impact of strategic transactions classified as material notable items. For further details, see 'Strategic transactions supplementary analysis' on page 29.

**Financial performance**

Profit before tax of $2.1bn was $0.2bn lower

than in 1H24 on a constant currency basis,

mainly due to the impact of strategic

transactions of $0.2bn.

Revenue of $7.0bn was $0.1bn or 1% higher

on a constant currency basis. This included an

adverse impact of $0.4bn from strategic

transactions.

Banking NII of $3.4bn decreased by $0.5bn or

12%, primarily driven by the impact of

disposals in Canada and Argentina of $0.4bn,

and the effects of lower interest rates on

deposits. This reduction was partly offset by

balance sheet growth.

Fee and other income of $3.6bn was up by

$0.7bn or 22%, driven by Wealth due to

broad-based growth across all products and in

multiple markets, including Hong Kong,

mainland China, Singapore and Taiwan.

In Wealth, fee and other income of $3.3bn

was up $0.5bn or 19%.

–Private Bank increased by $0.2bn or 23%,

as increased customer activity led to strong

performances in brokerage and trading, and

from higher annuity fees, driven by growth

in invested asset balances.

–Insurance increased by $0.2bn or 23%,

reflecting a higher CSM release given

continued year-on-year growth in our CSM

balance. The 1H25 Insurance

manufacturing CSM balance was $13.5bn,

up $1.2bn or 10%, primarily reflecting new

business CSM growth, which included a

reduction of $0.9bn from the

reclassification of our life insurance

business in France to held for sale.

ECL of $0.5bn in 1H25 increased by $37m

compared with 1H24 on a constant currency

basis.

Operating expenses of $4.5bn were $0.2bn

or 4% higher than in 1H24 on a constant

currency basis, primarily reflecting continued

investments in Wealth, higher spend and

investment in technology, the impact of

inflation and an increase in restructuring and

other related costs. These increases were

partly offset by a reduction in costs following

our business disposals in Canada and

Argentina.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

Corporate Centre

The results of Corporate Centre primarily comprise the financial impact of certain acquisitions and disposals, and

the share of profit, dilution and impairment loss impacts from interests in our associates and joint ventures. It also

includes Central Treasury, stewardship costs and consolidation adjustments.

**Financial performance** 

Profit before tax of $0.6bn was $5.4bn lower

than in 1H24 on a constant currency basis.

This included a $1.1bn loss from the dilution

of our shareholding and a $1.0bn impairment

to the carrying value of the Group's interest in

BoCom.

The Group's interest in BoCom reduced from

19.03% to 16.00% following the completion

of a capital issuance by BoCom on 17 June

2025. The dilution of the Group's interest

resulted in a pre-tax loss of $1.1bn,

recognised in other operating expense in the

Group's consolidated income statement. The

loss is not deductible for tax purposes as a

consequence of our shareholding in BoCom

being held for long-term investment

purposes. The Group's investment in BoCom

continues to be classified as an associate.

In addition, the Group performed an

impairment test on the carrying amount at

30 June 2025, which resulted in an

impairment of $1.0bn, as the recoverable

amount as determined by a value-in-use

calculation was lower than the carrying value,

recognised within impairment of interest in

associates.Consistent with prior periods, our

value-in-use calculation uses both historical

experience and market participant views to

estimate future cash flows, relevant discount

rates and associated capital assumptions.

Neither the dilution loss nor the impairment

loss had a material impact on HSBC's capital

ratios or distribution capacity. Both amounts

are treated as a material notable item, and

therefore are excluded from our dividend

payout ratio.

We remain strategically committed to

mainland China and continue our valued,

strategic partnership with BoCom.

The reduction in profit before tax also

included an adverse impact from the non-

recurrence of 1H24 notable items in revenue

of $3.5bn related to business disposals in

Canada and Argentina.

Revenue was $4.4bn lower on a constant

currency basis.This primarily reflected the

impact of notable items.

Banking NII was stable compared with 1H24

on a constant currency basis.Banking NII in

1H25 removes from NII the internal cost to

fund trading and fair value net assets,

predominantly in CIB, of $4.7bn (1H24:

$5.5bn).

Fee and other income of $0.5bn was $0.3bn

higher, primarily due to fair value movements

on financial instruments in Central Treasury

and structural foreign exchange hedges. The

increase also included fair value gains on non-

qualifying hedges related to our retained

French portfolio of home and certain other

loans.

Operating expenses of $0.2bn were broadly

stable on a constant currency basis.

Share of profit from associates and joint

ventures less impairment of $0.6bn

decreased by $0.9bn or 59% on a constant

currency basis, due to the impairment loss of

$1.0bn referred to above, partly offset by an

increase in the share of profit from SAB.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Management view of revenue** ※ | **Half-year to** | **Half-year to** | **1H25 vs. 1H24** | **1H25 vs. 1H24** | **1H25 vs. 1H24** |
| **Management view of revenue** ※ | **30 Jun 2025** | 30 Jun 2024 |  |  | **of which strategic**<br>**transactions**<sup>5</sup><br>|
| **Management view of revenue** ※ | **$m** | $m | **$m** | **%** | **$m** |
| **Banking NII**<sup>1</sup> | **(322)** | (333) | **11** | **3** | **—** |
| **Fee and other income**<sup>2</sup> | **458** | 175 | **283** | **>100** | **—** |
| **Revenue excluding notable items** | **136** | (158) | **294** | **186** | **—** |
| Notable items | **(1218)** | 3523 | **(4741)** | **>(100)** | **(3761)** |
| **Revenue**<sup>3</sup> | **(1082)** | 3365 | **(4447)** | **>(100)** | **(3761)** |
| **RoTE (annualised)**<sup>4</sup> **%** | **(2.8)** | 20.6 |  |  |  |
| 1 For a description of how we derive banking NII, see page 21. Banking NII in Corporate Centre is computed by deducting the internal cost to fund trading and fair <br>value net assets for which associated revenue is reported in 'Net income from financial instruments held for trading or managed on a fair value basis'. Corporate <br>Centre banking net interest expense includes funding charges on property and technology assets, and the banking NII of the retained portfolio of home and <br>other loans associated with the disposal of our retail banking operations in France.<br>2 'Fee and other income' includes gains and losses on certain transactions, valuation differences on issued long-term debt and associated swaps, fair value <br>movements on financial instruments, revaluation gains and losses on investment properties and property disposals, as well as consolidation adjustments and <br>other revenue items not allocated to business segments. For supplementary analysis of fee and other income, see page 28.<br>3 Revenue from Markets Treasury, HSBC Holdings net interest expense and hyperinflation are allocated out to the business segments, to align them better with <br>their revenue and expense. The total Markets Treasury revenue component of this allocation for 1H25 was $1,212m (1H24: $843m).<br>4 For details of our RoTE calculation by business segment, see page 40. <br>5 Impact of strategic transactions classified as material notable items. For further details, see 'Strategic transactions supplementary analysis' on page 29. | 1 For a description of how we derive banking NII, see page 21. Banking NII in Corporate Centre is computed by deducting the internal cost to fund trading and fair <br>value net assets for which associated revenue is reported in 'Net income from financial instruments held for trading or managed on a fair value basis'. Corporate <br>Centre banking net interest expense includes funding charges on property and technology assets, and the banking NII of the retained portfolio of home and <br>other loans associated with the disposal of our retail banking operations in France.<br>2 'Fee and other income' includes gains and losses on certain transactions, valuation differences on issued long-term debt and associated swaps, fair value <br>movements on financial instruments, revaluation gains and losses on investment properties and property disposals, as well as consolidation adjustments and <br>other revenue items not allocated to business segments. For supplementary analysis of fee and other income, see page 28.<br>3 Revenue from Markets Treasury, HSBC Holdings net interest expense and hyperinflation are allocated out to the business segments, to align them better with <br>their revenue and expense. The total Markets Treasury revenue component of this allocation for 1H25 was $1,212m (1H24: $843m).<br>4 For details of our RoTE calculation by business segment, see page 40. <br>5 Impact of strategic transactions classified as material notable items. For further details, see 'Strategic transactions supplementary analysis' on page 29. | 1 For a description of how we derive banking NII, see page 21. Banking NII in Corporate Centre is computed by deducting the internal cost to fund trading and fair <br>value net assets for which associated revenue is reported in 'Net income from financial instruments held for trading or managed on a fair value basis'. Corporate <br>Centre banking net interest expense includes funding charges on property and technology assets, and the banking NII of the retained portfolio of home and <br>other loans associated with the disposal of our retail banking operations in France.<br>2 'Fee and other income' includes gains and losses on certain transactions, valuation differences on issued long-term debt and associated swaps, fair value <br>movements on financial instruments, revaluation gains and losses on investment properties and property disposals, as well as consolidation adjustments and <br>other revenue items not allocated to business segments. For supplementary analysis of fee and other income, see page 28.<br>3 Revenue from Markets Treasury, HSBC Holdings net interest expense and hyperinflation are allocated out to the business segments, to align them better with <br>their revenue and expense. The total Markets Treasury revenue component of this allocation for 1H25 was $1,212m (1H24: $843m).<br>4 For details of our RoTE calculation by business segment, see page 40. <br>5 Impact of strategic transactions classified as material notable items. For further details, see 'Strategic transactions supplementary analysis' on page 29. | 1 For a description of how we derive banking NII, see page 21. Banking NII in Corporate Centre is computed by deducting the internal cost to fund trading and fair <br>value net assets for which associated revenue is reported in 'Net income from financial instruments held for trading or managed on a fair value basis'. Corporate <br>Centre banking net interest expense includes funding charges on property and technology assets, and the banking NII of the retained portfolio of home and <br>other loans associated with the disposal of our retail banking operations in France.<br>2 'Fee and other income' includes gains and losses on certain transactions, valuation differences on issued long-term debt and associated swaps, fair value <br>movements on financial instruments, revaluation gains and losses on investment properties and property disposals, as well as consolidation adjustments and <br>other revenue items not allocated to business segments. For supplementary analysis of fee and other income, see page 28.<br>3 Revenue from Markets Treasury, HSBC Holdings net interest expense and hyperinflation are allocated out to the business segments, to align them better with <br>their revenue and expense. The total Markets Treasury revenue component of this allocation for 1H25 was $1,212m (1H24: $843m).<br>4 For details of our RoTE calculation by business segment, see page 40. <br>5 Impact of strategic transactions classified as material notable items. For further details, see 'Strategic transactions supplementary analysis' on page 29. | 1 For a description of how we derive banking NII, see page 21. Banking NII in Corporate Centre is computed by deducting the internal cost to fund trading and fair <br>value net assets for which associated revenue is reported in 'Net income from financial instruments held for trading or managed on a fair value basis'. Corporate <br>Centre banking net interest expense includes funding charges on property and technology assets, and the banking NII of the retained portfolio of home and <br>other loans associated with the disposal of our retail banking operations in France.<br>2 'Fee and other income' includes gains and losses on certain transactions, valuation differences on issued long-term debt and associated swaps, fair value <br>movements on financial instruments, revaluation gains and losses on investment properties and property disposals, as well as consolidation adjustments and <br>other revenue items not allocated to business segments. For supplementary analysis of fee and other income, see page 28.<br>3 Revenue from Markets Treasury, HSBC Holdings net interest expense and hyperinflation are allocated out to the business segments, to align them better with <br>their revenue and expense. The total Markets Treasury revenue component of this allocation for 1H25 was $1,212m (1H24: $843m).<br>4 For details of our RoTE calculation by business segment, see page 40. <br>5 Impact of strategic transactions classified as material notable items. For further details, see 'Strategic transactions supplementary analysis' on page 29. | 1 For a description of how we derive banking NII, see page 21. Banking NII in Corporate Centre is computed by deducting the internal cost to fund trading and fair <br>value net assets for which associated revenue is reported in 'Net income from financial instruments held for trading or managed on a fair value basis'. Corporate <br>Centre banking net interest expense includes funding charges on property and technology assets, and the banking NII of the retained portfolio of home and <br>other loans associated with the disposal of our retail banking operations in France.<br>2 'Fee and other income' includes gains and losses on certain transactions, valuation differences on issued long-term debt and associated swaps, fair value <br>movements on financial instruments, revaluation gains and losses on investment properties and property disposals, as well as consolidation adjustments and <br>other revenue items not allocated to business segments. For supplementary analysis of fee and other income, see page 28.<br>3 Revenue from Markets Treasury, HSBC Holdings net interest expense and hyperinflation are allocated out to the business segments, to align them better with <br>their revenue and expense. The total Markets Treasury revenue component of this allocation for 1H25 was $1,212m (1H24: $843m).<br>4 For details of our RoTE calculation by business segment, see page 40. <br>5 Impact of strategic transactions classified as material notable items. For further details, see 'Strategic transactions supplementary analysis' on page 29. |

---

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

Risk overview

Managing risk

Economic, financial and geopolitical

developments have in the past affected, and

may in the future materially affect, HSBC'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.

**Geopolitical and macroeconomic risk**

The global economy continued to grow during

the first half of 2025, but developments were

distorted by the acceleration of consumption

and investment spending in anticipation of

tariffs being imposed. The interpretation of

US economic data has been complicated by a

surge in imports and business inventory

accumulation. In mainland China and Hong

Kong, supportive fiscal and monetary policies

continued to underpin growth. 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. HSBC operates in several

of the most affected markets, and 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.

In Hong Kong, our operations have been and

continue to be exposed to fluctuations in

HIBOR, which has experienced heightened

volatility due to recent capital market activity

and changing investor risk appetite.

Major central banks have also adjusted their

policy approach in light of recent economic

uncertainty. The US Federal Reserve paused

its cycle of interest rate cuts to assess the

impact of tariff policies on consumer prices

and inflation expectations. The Federal Funds

Rate was left unchanged during the first half

of 2025, at 4.25 to 4.5%. The Bank of

England ('BoE') 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

HSBC 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. Heightened

strategic competition between the US and

China is also affecting the configuration of

global supply chains, which may in turn affect

the Group's operations.

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.

Commercial real estate conditions remain

challenging in Hong Kong and mainland

China. In Hong Kong, the over-supply of non-

residential properties continued putting

downward pressure on rental and capital

values. In mainland China, government

stimulus has yet to trigger material

improvement in buyer sentiment. For further

details on market conditions, see page 62.

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.

**Our risk appetite**

At 30 June 2025, our CET1 ratio and ECL

charges were within their defined risk

appetite thresholds. At 30 June 2025 our

CET1 ratio decreased to 14.6% from 14.9%

at 31 December 2024 driven by an increase in

risk-weighted assets ('RWAs'), partly offset

by an increase in CET1 capital. Wholesale and

Retail ECL charges were within appetite at

0.45% and 0.35% of loans and advances

respectively.

**Our operations**

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.

HSBC is committed to using AI responsibly.

We are working to balance the opportunity AI

presents to accelerate delivery of our strategy

with the need for appropriate controls to help

mitigate the associated risks. To help meet

the Group's needs and regulatory

expectations for AI, whether developed

internally or facilitated through third parties,

we have refreshed our Group-wide AI

oversight committee and refined our AI

lifecycle management, aligning with our

company values and taking into account best

practice. HSBC's Principles for the Ethical

Use of Data and AI are available at

www.hsbc.com/ai.

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.

🡠For further details of our Central and other

economic scenarios, see page 47.

🡠For further details on our CET1 ratio, see page 67.

🡠For further details of our risk management

framework, see page 128 of our Annual Report

and Accounts 2024.

---

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

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---

| | | | |
|:---|:---|:---|:---|
| **Overview** | Interim management report | Interim condensed consolidated <br>financial statements<br>| Additional information |

---

Top and emerging risks

Our top and emerging risks report 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 the financial results, reputation or

business model of the Group. 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 agree

management actions to remediate and/or

reduce them to acceptable levels, as

required.

🡠For further details on our top and emerging risks

see pages 131 to 136 of our Annual Report and

Accounts 2024.

---

| | | |
|:---|:---|:---|
| **Risk** | **Trend** | **Description** |
| **Externally driven** |  |  |
| Geopolitical and <br>macroeconomic risks <br>| 🞁 | Our operations and portfolios are subject to risks arising from political instability, civil unrest and military conflict, which may <br>lead 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>|
| Technology and <br>cybersecurity risk<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 continue to monitor changes to the technology and threat landscape, including those arising <br>from ongoing geopolitical and macroeconomic events alongside third-party breaches and the impact this may have on risk <br>management. We operate a continuous improvement programme to help support the resilience and stability of our technology <br>operations and counter a fast-evolving and heightened cyber threat environment.<br>|
| Environmental, social <br>and governance <br>('ESG') risks<br>| 🞁 | We are subject to ESG risks, including in relation to climate change, nature and human rights. These risks have increased due <br>to the increasing frequency of severe weather events, diverging national agendas and a more complex regulatory environment. <br>Financial institutions' actions and investment decisions in respect of ESG matters continue to be subject to heightened scrutiny <br>by stakeholders. Failure to meet these evolving expectations may have financial and non-financial impacts, including <br>reputational, legal and regulatory compliance risks.<br>|
| Financial crime risk  | 🞁 | We are exposed to financial crime risk from our customers, staff and third parties engaging in criminal activity. The financial <br>crime risk environment is heightened due to increasingly complex geopolitical challenges, the macroeconomic outlook, the <br>complex and dynamic nature of sanctions and export control compliance, evolving financial crime regulations, rapid <br>technological developments, an increasing number of national data privacy requirements and the increasing sophistication of <br>fraud. As a result, we will continue to face the possibility of regulatory enforcement and reputational risk.<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 <br>new products and services offered by competitors. This challenges us to continue to innovate with new digital capabilities and <br>evolve our products, to attract, retain and best serve our customers. Along with opportunities, new technology, including <br>generative AI, can introduce risks and disruption. We seek to manage technology developments with appropriate controls and <br>oversight.<br>|
| Evolving regulatory <br>environment risk<br>| 🞂 | The regulatory and compliance risks are set against continued geopolitical risk and regulatory focus on models, data, <br>regulatory reporting, financial resilience, ESG, technology and generative AI, financial crime and risk management practices, <br>including operational/cyber resilience and controls. Multiple jurisdictions are progressing the implementation of Basel 3.1 <br>standards, to various timescales, some of which are being delayed. The UK government's focus on improving business growth <br>is also driving legislative and regulatory change.<br>|
| **Internally driven** | **Internally driven** |  |
| Data risk | 🞂 | We use data to serve our customers and run our operations, often in real-time within digital experiences and processes. If our <br>data is not accurate and timely, our ability to serve customers, operate with resilience or meet regulatory requirements could <br>be impacted. We seek to ensure that non-public data is kept confidential, and that we comply with the growing number of <br>regulations that govern data privacy and cross-border movement of data.<br>|
| Risks arising from the <br>receipt of services <br>from third parties <br>| 🞂 | We procure goods and services from a range of third parties. In line with the macroeconomic and geopolitical climate, the risk <br>of 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>|
| 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. New technologies, including generative AI, are driving a need for enhanced model risk controls.<br>|
| Change execution risk | 🞁 | Delivering change effectively is critical to achieving our strategy and enables us to meet rapidly-evolving customer and <br>stakeholder needs. We seek to prioritise and deliver complex change in line with established risk management processes, to <br>achieve sustainable outcomes, to meet industry and regulatory expectations and to fulfil our obligations to customers and <br>clients. The impact of the ongoing reorganisation of the Group on the level of change execution risk in the near to medium <br>term is being monitored.<br>|
| Risks associated with <br>workforce capability, <br>capacity and <br>environmental factors <br>with potential impact <br>on growth<br>| 🞁 | 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. Attrition across the <br>Group remains stable, but failure to manage these risks may impact the delivery of our strategic objectives or lead to <br>regulatory sanctions or legal claims, and the risks are heightened during the current period of fundamental organisational <br>change.<br>|

---

🞁Risk heightened during the first half of 2025🞂Risk remained at the same level as at 31 December 2024

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Financial summary |  |  |

---

Financial summary

Basis of presentation

Constant currency performance

Constant currency performance is computed by adjusting reported

results for the effects of foreign currency translation differences,

which reflect the movements of the US dollar against most major

currencies during 2025. Excluding these differences allows us to

assess balance sheet and income statement performance on a like-

for-like basis and to better understand the underlying trends in the

business. Foreign currency translation differences at 30 June 2025

are computed by retranslating into US dollars for non-US dollar

branches, subsidiaries, joint ventures and associates:

–the income statement for the half-year to 30 June 2024 at the

average rate of exchange for the half-year to 30 June 2025; and

–the balance sheets at 30 June 2024 and 31 December 2024 at the

prevailing rates of exchange on 30 June 2025.

No adjustment has been made to the exchange rates used to

translate foreign currency-denominated assets and liabilities into the

functional currencies of any HSBC branches, subsidiaries, joint

ventures or associates. The constant currency data of our operations

in Türkiye has not been adjusted further for the impacts of

hyperinflation. When reference is made to foreign currency translation

differences in tables or commentaries, comparative data reported in

the functional currencies of HSBC's operations has been translated at

the appropriate exchange rates applied in the current period on the

basis described above.

Notable items and material notable

items

We separately disclose 'notable items', which are components of our

income statement that management would consider as outside the

normal course of business and generally non-recurring in nature.

Certain notable items are classified as 'material notable items', which

are a subset of notable items. Categorisation as a material notable item

is dependent on the nature of each item in conjunction with the

financial impact on the Group's income statement, and are excluded

from our target basis dividend payout ratio calculation and earnings per

share measure. Material notable items in 1H25 or relevant comparative

periods relate to the operating expenses associated with actions to exit

or wind down non-strategic businesses. They also include a dilution

loss and the recognition of an impairment of our investment in BoCom,

as well as the impacts of transactions completed in previous periods,

including the sale of our retail banking operations in France, the sale of

our banking business in Canada and the disposal of our business in

Argentina.

🡠The tables on pages <u>[26](#if90db0a0af6b417cb15a72b00e6556ad_103)</u> to <u>[27](#i8888570458cd43609fc3e75b91c92dac_0-0-1-8-12026095)</u> and pages <u>[34](#if90db0a0af6b417cb15a72b00e6556ad_145)</u> to <u>[36](#ie5530744589e4206b5bc9d0f6d6951ca_0-0-1-6-11862201)</u> detail the effects of notable

items on each of our business segments, legal entities and selected

countries/territories in 1H25 and 1H24.

Impact of strategic transactions

In addition to the items categorised as material notable items, the

impacts of strategic transactions include the distorting impact observed

between the periods of the operating income statement results related

to acquisitions and disposals that affect period-on-period comparisons.

Once a transaction has completed, the impact will include the operating

income statement results of each business, which are not classified as

notable items, in any comparative period if there are no results in the

current period. We consider the monthly impact of distorting income

statement results when calculating the impact of strategic transactions.

Impact of hyperinflationary

accounting

The sale of our business in Argentina, previously treated as a

hyperinflationary economy for accounting purposes, was completed in

2024. We continue to treat Türkiye as a hyperinflationary economy for

accounting purposes. The impact of applying International Accounting

Standard ('IAS') 29 'Financial Reporting in Hyperinflationary Economies'

and the hyperinflation provisions of IAS 21 'The Effects of Changes in

Foreign Exchange Rates' in the current period for our operations in

Türkiye was a decrease in the Group's profit before tax of $78m (1H24:

$89m), comprising a decrease in revenue, including loss on net monetary

position, of $79m (1H24: $85m) and a decrease in ECL and operating

expenses of $1m (1H24: increase of $4m). The consumer price index at

30 June 2025 for Türkiye was 3,132, with an increase in the period of

448 (1H24: 460 increase).

Use of alternative performance

measures

Our reported results are prepared in accordance with International

Financial Reporting Standards as issued by the International Accounting

Standards Board ('IFRS Accounting Standards'), as detailed in the interim

condensed consolidated financial statements starting on page 75.

To measure our performance, we supplement our IFRS Accounting

Standards figures with non-IFRS Accounting Standards measures, which

constitute alternative performance measures under European Securities

and Markets Authority guidance and non-GAAP financial measures

defined in and presented in accordance with the US Securities and

Exchange Commission rules and regulations. These measures include

those derived from our reported results that eliminate factors distorting

period-on-period comparisons. The 'constant currency performance'

measure used throughout this report is described above. Definitions and

calculations of other alternative performance measures are included in

'Alternative performance measures' on page <u>[38](#i05ae11a547a94c79ace545e789a2465a_0-3-1-3-11309827)</u>. Additionally, the

insurance-specific non-GAAP measure 'Insurance equity plus CSM net of

tax' is provided on page <u>[30](#if90db0a0af6b417cb15a72b00e6556ad_124)</u>, along with its definition and reconciliation to

the GAAP measure. All alternative performance measures are reconciled

to the closest reported performance measure.

Return on average tangible equity

excluding notable items

The calculation for RoTE excluding notable items adjusts the 'profit

attributable to the ordinary shareholders, excluding goodwill and other

intangible assets impairment' for the post-tax impact of notable items. It

also adjusts the 'average tangible equity' for the post-tax impact of

notable items in each period, which remain as adjusting items for all

relevant periods within that calendar year.

🡠See page [38](#if90db0a0af6b417cb15a72b00e6556ad_172) for the definition of return on average tangible equity excluding

notable items and page [39](#if90db0a0af6b417cb15a72b00e6556ad_181) for the reconciliation to the GAAP measure.

Banking net interest income

Banking net interest income ('banking NII') adjusts our NII primarily for

the impact of funding trading and fair value activities reported in interest

expense. It represents the Group's banking revenue that is directly

impacted by changes in interest rates. We use this measure to

determine the deployment of our surplus funding, and to help optimise

our structural hedging and risk management actions. For more

information on banking NII, see page <u>[21](#if90db0a0af6b417cb15a72b00e6556ad_55)</u>.

Constant currency revenue and profit

before tax excluding notable items and

the impact of strategic transactions

To aid the understanding of our results, we separately report 'constant

currency revenue excluding notable items' and 'constant currency profit

before tax excluding notable items', which exclude the impact of notable

items and the impact of foreign exchange translation. We also separately

disclose 'constant currency revenue excluding notable items and the

impact of strategic transactions' and 'constant currency profit before tax

excluding notable items and the impact of strategic transactions', which

also exclude the impact of strategic transactions classified as material

notable items as described above. We consider these measures to provide

useful information to investors as they remove items that distort period-on-

period comparisons.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Financial summary |  |  |

---

The impact of strategic transactions also includes the distorting impact

between the periods of the operating income statement results related

to acquisitions and disposals and that affect period-on-period

comparisons. These impacts are not included in our notable or material

notable items. The impact of strategic transactions is computed by

including the operating income statement results of each business in any

period for which there are no results in the comparative period.

🡠See page [38](#if90db0a0af6b417cb15a72b00e6556ad_172) for the reconciliation to the GAAP measure.

Target basis operating expenses

Target basis operating expenses is computed by excluding the direct cost

impact of the disposals of our banking business in Canada and our

business in Argentina from the 2024 baseline. It is measured on a

constant currency basis and excludes notable items and the impact of

retranslating the prior year results of hyperinflationary economies at

constant currency, which we consider to be outside of our control. We

consider target basis operating expenses to provide useful information to

investors by quantifying and excluding the notable items that

management considered when setting and assessing cost-related targets.

🡠See page [41](#if90db0a0af6b417cb15a72b00e6556ad_196) for the reconciliation to the GAAP measure.

Basic earnings per share excluding

material notable items and related

impacts

We have established a dividend payout ratio target basis of 50% for

2025. For the purposes of computing our dividend payout ratio target

basis, we exclude from earnings per share material notable items and

related impacts. Material notable items for the 'basic earnings per share

excluding material notable items and related impacts' measure in 2025

and comparative periods are described above.

Related impacts include those items that do not qualify for designation as

notable items but whose adjustment is considered by management to

be appropriate for the purposes of determining the basis for our dividend

payout ratio target basis calculation, for which we exclude from earnings

per share material notable items and related impacts.

🡠See page <u>[29](#if90db0a0af6b417cb15a72b00e6556ad_106)</u> for the supplementary analysis of the impact of strategic

transactions.

🡠See page [38](#if90db0a0af6b417cb15a72b00e6556ad_172) for the definition of basic earnings per share excluding material

notable items and related impacts and page [41](#if90db0a0af6b417cb15a72b00e6556ad_199) for the reconciliation to the

GAAP measure.

Summary consolidated income statement

---

| | | |
|:---|:---|:---|
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| Net interest income | **16821** | 16911 |
| Net fee income | **6643** | 6200 |
| Net income from financial instruments held for trading or managed on a fair value basis<sup>1</sup> | **10547** | 10516 |
| Net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through <br>profit or loss<br>| **5113** | 2376 |
| Insurance finance expense | **(5329)** | (2486) |
| Insurance service result | **785** | 662 |
| Gain less impairment relating to sale of business operations<sup>2</sup> | **(34)** | 3256 |
| Other operating (expense)/income<sup>3</sup> | **(424)** | (143) |
| **Net operating income before change in expected credit losses and other credit impairment charges**<sup>4</sup> | **34122** | 37292 |
| Change in expected credit losses and other credit impairment charges  | **(1941)** | (1066) |
| **Net operating income** | **32181** | 36226 |
| Total operating expenses excluding amortisation and impairment of intangible assets | **(15752)** | (15194) |
| Amortisation and impairment of intangible assets | **(1270)** | (1102) |
| **Operating profit** | **15159** | 19930 |
| Share of profit in associates and joint ventures | **1651** | 1626 |
| Impairment of interest in associate<sup>3</sup> | **(1000)** | – |
| **Profit before tax** | **15810** | 21556 |
| Tax expense | **(3369)** | (3891) |
| **Profit after tax** | **12441** | 17665 |
| Attributable to: |  |  |
| – ordinary shareholders of the parent company | **11510** | 16586 |
| – other equity holders | **547** | 526 |
| – non-controlling interests | **384** | 553 |
| **Profit after tax** | **12441** | 17665 |
|  | **$** | $|
| Basic earnings per share | **0.65** | 0.89 |
| Diluted earnings per share | **0.65** | 0.88 |
| Dividend per ordinary share (paid in the period)<sup>5</sup> | **0.46** | 0.62 |
|  | **%** | % |
| Post-tax return on average total assets (annualised) | **0.8** | 1.2 |
| Return on average ordinary shareholders' equity (annualised) | **13.7** | 19.8 |
| Return on average tangible equity (annualised) | **14.7** | 21.4 |

---

1The amount in 1H25 includes a $0.1bn mark-to-market gain on interest rate hedging of the portfolio of retained loans post sale of our retail banking operations in France and

a $0.1bn fair value loss on Grupo Financiero Galicia's ('Galicia') American Depositary Receipts ('ADRs') received as purchase consideration from the sale of our business in

Argentina, which were disposed of in 2Q25. Amount in 1H24 includes a $255m gain on the foreign exchange hedging of the proceeds from the sale of our banking business

in Canada.

2Includes amounts from 'Other operating income' relating to the execution of all sales of business operations. In 1H24, a gain of $4.6bn inclusive of the recycling of $0.6bn in

foreign currency translation reserve losses and $0.4bn of other reserves recycling losses on the sale of our banking business in Canada, and an impairment loss of $1.2bn

relating to the sale of our business in Argentina was recognised.

3The amount in 1H25 'Other operating (expense)/income' includes a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in BoCom. We

have also recognised a $1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in BoCom in 'Impairment of interest in

associate'. See Note 10 on page 93.

4Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.

5The $0.46 dividend paid during the period consisted of a fourth interim dividend of $0.36 per ordinary share in respect of the financial year ended 31 December 2024 paid in

April 2025 and a first interim dividend of $0.10 per ordinary share in respect of the financial year ending 31 December 2025 paid in June 2025.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Financial summary |  |  |

---

Income statement commentary

The below tables and commentary compare Group financial performance for the half-year to 30 June 2025 with the half-year to 30 June 2024,

unless otherwise stated. For further financial performance data of our global business segments, see pages <u>[26](#if90db0a0af6b417cb15a72b00e6556ad_103)</u> to <u>[27](#i8888570458cd43609fc3e75b91c92dac_0-0-1-8-12026095)</u>. For further financial

performance data by major legal entity, see pages <u>[32](#if90db0a0af6b417cb15a72b00e6556ad_142)</u> to <u>[37](#i25cc93aacee546edbc847758925d31a3_50-0-1-1-11309827)</u>.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Net interest income |  |  |  |  |  |
|  | Half-year to | Half-year to | Quarter to | Quarter to | Quarter to |
|  | **30 Jun 2025** | 30 Jun 2024 | **30 Jun 2025** | 31 Mar 2025 | 30 Jun 2024 |
|  | **$m** | $m | **$m** | $m | $m |
| Interest income | **49008** | 55372 | **24595** | 24413 | 27107 |
| Interest expense | **(32187)** | (38461) | **(16076)** | (16111) | (18849) |
| **Net interest income** | **16821** | 16911 | **8519** | 8302 | 8258 |
| Average interest-earning assets | **2159900** | 2097866 | **2195244** | 2124161 | 2055283 |
|  | **%** | % | **%** | % | % |
| Gross interest yield<sup>1</sup> | **4.58** | 5.31 | **4.49** | 4.66 | 5.30 |
| Less: gross interest payable<sup>1</sup> | **(3.26)** | (4.08) | **(3.18)** | (3.34) | (4.05) |
| Net interest spread<sup>2</sup> | **1.32** | 1.23 | **1.31** | 1.32 | 1.25 |
| Net interest margin<sup>3</sup> | **1.57** | 1.62 | **1.56** | 1.59 | 1.62 |

---

1Gross interest yield is the average annualised interest rate earned on average interest-earning assets ('AIEA'). Gross interest payable is the average annualised

interest cost as a percentage of average interest-bearing liabilities.

2Net interest spread is the difference between the average annualised interest rate earned on AIEA, net of amortised premiums and loan fees, and the average

annualised interest rate payable on average interest-bearing liabilities.

3Net interest margin is net interest income expressed as an annualised percentage of AIEA.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Summary of interest income by type of asset | Summary of interest income by type of asset | Summary of interest income by type of asset | Summary of interest income by type of asset | Summary of interest income by type of asset | Summary of interest income by type of asset | Summary of interest income by type of asset | Summary of interest income by type of asset | Summary of interest income by type of asset | Summary of interest income by type of asset |
|  | Half-year to | Half-year to | Half-year to | Half-year to | Half-year to | Half-year to | Full-year to | Full-year to | Full-year to |
|  | **30 Jun 2025** | **30 Jun 2025** | **30 Jun 2025** | 30 Jun 2024 | 30 Jun 2024 | 30 Jun 2024 | 31 Dec 2024 | 31 Dec 2024 | 31 Dec 2024 |
|  | **Average**<br>**balance**<br>| **Interest**<br>**income**<br>| **Yield** | Average<br>balance<br>| Interest<br>income<br>| Yield | Average<br>balance<br>| Interest<br>income<br>| Yield |
|  | **$m** | **$m** | **%** | $m | $m | % | $m | $m | % |
| Short-term funds and loans and advances to banks | **334336** | **6042** | **3.64** | 354570 | 7611 | 4.32 | 349517 | 14727 | 4.21 |
| Loans and advances to customers | **957084** | **23066** | **4.86** | 943836 | 25059 | 5.34 | 949825 | 49879 | 5.25 |
| Reverse repurchase agreements – non-trading<sup>1</sup> | **263723** | **8034** | **6.14** | 234712 | 9022 | 7.73 | 238694 | 17721 | 7.42 |
| Financial investments  | **524043** | **10407** | **4.00** | 455723 | 10209 | 4.50 | 470182 | 20587 | 4.38 |
| Other interest-earning assets  | **80714** | **1459** | **3.65** | 109025 | 3471 | 6.40 | 91067 | 5717 | 6.28 |
| **Total interest-earning assets**  | **2159900** | **49008** | **4.58** | 2097866 | 55372 | 5.31 | 2099285 | 108631 | 5.17 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Summary of interest expense by type of liability | Summary of interest expense by type of liability | Summary of interest expense by type of liability | Summary of interest expense by type of liability | Summary of interest expense by type of liability | Summary of interest expense by type of liability | Summary of interest expense by type of liability | Summary of interest expense by type of liability | Summary of interest expense by type of liability | Summary of interest expense by type of liability |
|  | Half-year to | Half-year to | Half-year to | Half-year to | Half-year to | Half-year to | Full-year to | Full-year to | Full-year to |
|  | **30 Jun 2025** | **30 Jun 2025** | **30 Jun 2025** | 30 Jun 2024 | 30 Jun 2024 | 30 Jun 2024 | 31 Dec 2024 | 31 Dec 2024 | 31 Dec 2024 |
|  | **Average**<br>**balance**<br>| **Interest**<br>**expense**<br>| **Cost** | Average<br>balance<br>| Interest<br>expense<br>| Cost | Average<br>balance<br>| Interest<br>expense<br>| Cost |
|  | **$m** | **$m** | **%** | $m | $m | % | $m | $m | % |
| Deposits by banks<sup>2</sup> | **74321** | **1318** | **3.58** | 63100 | 1422 | 4.53 | 66405 | 2930 | 4.41 |
| Customer accounts<sup>3</sup> | **1464045** | **17301** | **2.38** | 1353221 | 20153 | 2.99 | 1385840 | 40173 | 2.90 |
| Repurchase agreements – non-trading<sup>1</sup> | **183938** | **6605** | **7.24** | 187931 | 7872 | 8.42 | 187337 | 15617 | 8.34 |
| Debt securities in issue – non-trading | **196936** | **5556** | **5.69** | 195038 | 6378 | 6.58 | 196440 | 12806 | 6.52 |
| Other interest-bearing liabilities | **71294** | **1407** | **3.98** | 98359 | 2636 | 5.39 | 84773 | 4372 | 5.16 |
| **Total interest-bearing liabilities** | **1990534** | **32187** | **3.26** | 1897649 | 38461 | 4.08 | 1920795 | 75898 | 3.95 |

---

1The average balances for repurchase and reverse repurchase agreements include net amounts where the criteria for offsetting are met, resulting in a lower net

balance reported for repurchase agreements and thus higher cost.

2Including interest-bearing bank deposits only.

3Including interest-bearing customer accounts only.

**Net interest income ('NII')** for 1H25 was $16.8bn, a decrease of

$0.1bn or 1% compared with 1H24. On a constant currency basis, NII

increased by $0.3bn or 2% compared with 1H24, as lower costs of

funding the trading book reflecting a reduction in market interest rates

and the benefit of our structural hedge offset decreases due to the

business disposals in Argentina and Canada, and the impact of lower

market interest rates on asset re-pricing.

NII for 2Q25 was $8.5bn, up 3% compared with 1Q25. On a constant

currency basis, NII was stable compared with 1Q25, as the benefit of

our structural hedge, higher NII in Markets Treasury and a lower

funding cost associated with our trading book were partly offset by

the impact of lower market interest rates on asset repricing,

particularly in Asia due to the reduction in HIBOR.

**Net interest margin ('NIM')** for 1H25 of 1.57% was 5 basis points

('bps') lower compared with 1H24, mainly due to an adverse impact of

foreign currency translation differences and the disposal of our

business in Argentina, partly offset by the benefit of our structural

hedge.

The decrease in NIM in 1H25 included a 4bps unfavourable impact of

foreign currency translation differences.

NIM for 2Q25 was 1.56%, down 3bps compared with 1Q25, as

growth in NII was lower than the increase in average interest-earning

assets, mainly in Asia.

**Interest income**for 1H25of $49.0bn decreased by $6.4bn compared

with 1H24. This was primarily due to business disposals in Argentina

and Canada, lower market interest rates and a $0.4bn adverse impact

from foreign currency translation differences.

Interest income of $24.6bn in 2Q25 was $0.2bn higher compared

with 1Q25. On a constant currency basis, it decreased by $0.5bn due

to the fall in market interest rates.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Financial summary |  |  |

---

**Interest expense** for 1H25 of $32.2bn decreased by $6.3bn or 16%

compared with 1H24. On a constant currency basis, interest expense

decreased by $6.2bn, driven by business disposals in Argentina and

Canada, and a fall in market interest rates.

Interest expense of $16.1bn in 2Q25 was broadly stable compared

with 1Q25. On a constant currency basis, it decreased by $0.5bn

predominantly due to lower market interest rates.

Banking net interest income ※

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Banking net interest income |  |  |  |  |  |
|  | Half-year to | Half-year to | Quarter to | Quarter to | Quarter to |
|  | **30 Jun 2025** | 30 Jun 2024 | **30 Jun 2025** | 31 Mar 2025 | 30 Jun 2024 |
|  | **$m** | $m | **$m** | $m | $m |
| **Net interest income** | **16821** | 16911 | **8519** | 8302 | 8258 |
| Banking book funding costs used to generate 'net income from financial <br>instruments held for trading or managed on a fair value basis'<br>| **4710** | 5509 | **2307** | 2403 | 2787 |
| Third-party net interest income from insurance | **(218)** | (216) | **(112)** | (106) | (107) |
| **Banking net interest income** | **21313** | 22204 | **10714** | 10599 | 10938 |
| Currency translation | **—** | (352) | **—** | 274 | 16 |
| **Banking net interest income – on a constant currency basis** | **21313** | 21852 | **10714** | 10873 | 10954 |
| **Banking net interest income – on a reported basis** | **21313** | 22204 | **10714** | 10599 | 10938 |
| – of which: |  |  |  |  |  |
| The Hongkong and Shanghai Banking Corporation Limited | **10615** | 10752 | **5176** | 5439 | 5317 |
| HSBC UK Bank plc | **5508** | 5062 | **2846** | 2662 | 2532 |
| HSBC Bank plc | **2429** | 2296 | **1325** | 1104 | 1187 |

---

**Banking net interest income ('banking NII')** adjusts our NII,

primarily for the impact of funding trading and fair value activities

reported in interest expense. It represents the Group's banking

revenue that is directly impacted by changes in interest rates. It is

defined as Group net interest income after deducting:

–the internal cost to fund trading and fair value net assets for which

associated revenue is reported in 'Net income from financial

instruments held for trading or managed on a fair value basis', also

referred to as 'trading and fair value income'. These funding costs

reflect proxy overnight or term interest rates as applied by internal

funds transfer pricing;

–the funding cost of foreign exchange swaps in Markets Treasury,

where an offsetting income or loss is recorded in trading and fair

value income. These instruments are used to manage foreign

currency deployment and funding in our entities; and

–third-party net interest income in our insurance business.

In our segmental disclosures, the funding costs of trading and fair

value net assets are predominantly recorded in CIB in 'net income

from financial instruments held for trading or managed on a fair value

basis'. On consolidation, this funding is eliminated in Corporate

Centre, resulting in an increase in the funding cost reported in net

interest income with an equivalent offsetting increase in 'net income

from financial instruments held for trading or managed on a fair value

basis' in this segment. In the consolidated Group results, the cost to

fund these trading and fair value net assets is reported in net interest

income.

Banking NII was $21.3bn in 1H25, a reduction of $0.9bn compared

with 1H24, and included an adverse impact of foreign currency

translation differences of $0.4bn.The funding costs associated with

generating trading and fair value income were $4.7bn, a decrease of

$0.8bn compared with 1H24.

The reduction in banking NII included a $1.3bn impact of business

disposals in Argentina and Canada, and an adverse impact of lower

market interest rates on asset re-pricing, including the fall in HIBOR

during 2Q25.These reductions were partly offset by the benefit of

our structural hedge and from higher NII from Markets Treasury.

Banking NII also deducts third-party NII related to our insurance

business, which was $0.2bn, broadly stable compared with 1H24.

The internally allocated funding to generate trading and fair value

income was approximately $208bn at 30 June 2025, broadly in line

with the balances at 30 June 2024. This relates to trading, fair value

and associated net asset balances predominantly in CIB.

To supplement banking NII, we also provide banking NII sensitivity to

demonstrate our revenue sensitivity to interest rate movements.

Management uses these measures to determine the deployment of

our surplus funding, and to help optimise our structural hedging and

risk management actions.

🡠For further details on banking NII sensitivity, see page71.

**Net fee income** of $6.6bn was $0.4bn higher than in 1H24, including

an adverse impact of $0.2bn due to the impact of the disposal of our

banking business in Canada and business in Argentina.On a constant

currency basis, net fee income was $0.5bn higher, driven by growth

in fees from Wealth products in our Hong Kong business and in IWPB

in Hong Kong, mainland China, Taiwan and Singapore. Net fee income

was broadly stable in our other segments.

**Net income from financial instruments held for trading or** 

**managed on a fair value basis** of $10.5bn was stable compared

with 1H24. This reflected higher income in CIB, notably as higher

market volatility benefited Global Foreign Exchange and Debt and

Equity Markets.The funding costs associated with generating this

income fell as a result of lower interest rates, which resulted in a

corresponding increase in net interest income.

The reduction of trading income in Corporate Centre also included an

adverse movement of $0.1bn in 1H25 on American Depositary

Receipts received as purchase consideration from the sale of our

business in Argentina, which we disposed of in 2Q25.It also included

the non-recurrence of favourable fair value movements of $0.3bn in

1H24 on the foreign exchange hedging of the proceeds of the sale of

our banking business in Canada until the completion of the sale.

**Net income from assets and liabilities of insurance businesses,** 

**including related derivatives, measured at fair value through** 

**profit or loss** of $5.1bn was $2.7bn higher than in 1H24. This

increase was mainly in Hong Kong, reflecting favourable fair value

movements on debt securities due to movements in interest rates.

This favourable movement resulted in a corresponding movement in

insurance finance expense, which has an offsetting impact for the

related liabilities to policyholders.

**Insurance finance expense** of $5.3bn was $2.8bn higher than in

1H24, reflecting the impact of investment returns on underlying

assets on the value of liabilities to policyholders, which moves

inversely with 'net income from assets and liabilities of insurance

businesses, including related derivatives, measured at fair value

through profit or loss'.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Financial summary |  |  |

---

**Insurance service result** of $0.8bn increased by $0.1bn compared

with 1H24, primarily due to an increase in the release of the

contractual service margin ('CSM') of $0.1bn. This primarily reflected

a higher CSM balance from higher new business written.

**Gains less impairment relating to sale of business operations**

were $34m compared with $3.3bn in 1H24.The 1H24 period included

a gain of $4.6bn inclusive of the recycling of $0.6bn in foreign

currency translation reserve losses and $0.4bn of other reserves

recycling losses on the sale of our banking business in Canada.This

was partly offset by an impairment loss of $1.2bn relating to the sale

of our business in Argentina.

**Other operating income/(expense)** was an expense of $0.4bn in

1H25, which was $0.3bn higher than the expense of $0.1bn in 1H24.

The 1H25 period included a dilution loss of $1.1bn on BoCom following

the completion of its capital issuance.This was partly offset by the non-

recurrence of adverse hyperinflationary impacts in Argentina in 1H24 of

$0.7bn.

**Change in expected credit losses and other credit impairment** 

**charges ('ECL')** of $1.9bn was $0.9bn higher than in 1H24.The

charge in 1H25 included charges of $0.5bn related to the Hong Kong

commercial real estate sector. This reflected updates to our models

used for ECL calculations, which had an impact of $0.1bn, an increase

in allowances for new defaulted exposures, as well as the over-supply

of non-residential properties putting continued downward pressure on

rental and capital values.The 1H25 period also included allowances to

reflect heightened uncertainty and a deterioration in the forward

economic outlook due to geopolitical tensions and higher trade tariffs.

In 1H24, the ECL charge benefited from allowance releases, mainly in

the UK and from a recovery relating to a single CIB client.

🡠For further details on the calculation of ECL, including the measurement

uncertainties and significant judgements applied to such calculations, the

impact of economic scenarios and management judgemental adjustments,

see pages 47 to 55.

---

| | | | |
|:---|:---|:---|:---|
| Staff numbers (full-time equivalents)<sup>1</sup> | Staff numbers (full-time equivalents)<sup>1</sup> | Staff numbers (full-time equivalents)<sup>1</sup> | Staff numbers (full-time equivalents)<sup>1</sup> |
|  | At | At | At |
|  | **30 Jun 2025** | 30 Jun 2024 | 31 Dec 2024 |
| **Business segment** |  |  |  |
| Hong Kong | **33144** | 34836 | 34578 |
| UK | **31511** | 30653 | 30783 |
| Corporate and Institutional Banking | **73171** | 72674 | 71935 |
| International Wealth and Premier Banking | **73019** | 75451 | 73668 |
| Corporate Centre | **285** | 364 | 340 |
| **Total staff numbers** | **211130** | 213978 | 211304 |

---

1Represents the number of full-time equivalent people with contracts of service with the Group who are being paid at the reporting date.

**Operating expenses** of $17.0bn were $0.7bn or 4% higher than in

1H24, driven by $0.6bn of restructuring and other related costs in

1H25 related to our organisational simplification, mainly severance

costs that are classified as notable items. It also included an increase of

$0.1 bn related to strategic disposals and wind-downs, including asset

impairments in Europe. In addition, growth included higher spend and

investment in technology and the impacts of inflation.These increases

were partly offset by reductions following the completion of our

business disposals in Canada and Argentina, the impact of our

restructuring activities, and a favourable impact from foreign currency

translation differences of$0.1bn.

The number of employees expressed in full-time equivalent staff at

30 June 2025 was 211,130, a decrease of 174 from

31 December 2024. The number of contractors at 30 June 2025 was

4,070, a decrease of 156 from 31 December 2024.

**Share of profit in associates and joint ventures** of $1.7bn was

$25m or 2% higher, reflecting an increase in the share of profit from

SAB.

**Impairment of interest in associate** of $1.0bnrelated to BoCom.

🡠For further details of our impairment review process, see Note 10 on the

interim condensed consolidated financial statements.

---

| | | |
|:---|:---|:---|
| Tax expense | Tax expense | Tax expense |
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| **Tax (charge)/credit** |  |  |
| Reported | **(3369)** | (3891) |
| Currency translation  | **—** | 21 |
| **Constant currency tax (charge)/credit** | **(3369)** | (3870) |

---

---

| | | |
|:---|:---|:---|
| Notable items | Notable items | Notable items |
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| **Tax** |  |  |
| Tax (charge)/credit on notable items | **379** | 14 |

---

Tax in 1H25 was a charge of $3.4bn, representing an effective tax

rate of 21.3%. The effective tax rate for 1H25 was increased by the

non-deductible impairment of investments in associates and a dilution

loss on our investment in BoCom. Excluding these items, the

effective rate for 1H25 was 19.7%. Tax in 1H24 was a charge of

$3.9bn, representing an effective tax rate of 18.1%.

The effective tax rate for 1H24 was reduced by the non-taxable gain

on the sale of our banking business in Canada and increased by the

non-deductible loss recorded on the sale of our business in Argentina.

Excluding these items, the effective rate for 1H24 was 21.4%.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Financial summary |  |  |

---

Summary consolidated balance sheet

---

| | | |
|:---|:---|:---|
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$m** | $m |
| **Assets** |  |  |
| Cash and balances at central banks  | **246360** | 267674 |
| Trading assets  | **333745** | 314842 |
| Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | **128942** | 115769 |
| Derivatives  | **249672** | 268637 |
| Loans and advances to banks  | **107582** | 102039 |
| Loans and advances to customers | **981722** | 930658 |
| Reverse repurchase agreements – non-trading  | **283204** | 252549 |
| Financial investments  | **547955** | 493166 |
| Assets held for sale | **38978** | 27234 |
| Other assets | **296211** | 244480 |
| **Total assets**  | **3214371** | 3017048 |
| **Liabilities** |  |  |
| Deposits by banks  | **97782** | 73997 |
| Customer accounts | **1718604** | 1654955 |
| Repurchase agreements – non-trading | **195532** | 180880 |
| Trading liabilities  | **70653** | 65982 |
| Financial liabilities designated at fair value | **163589** | 138727 |
| Derivatives | **257601** | 264448 |
| Debt securities in issue  | **102129** | 105785 |
| Insurance contract liabilities | **118297** | 107629 |
| Liabilities of disposal groups held for sale | **46165** | 29011 |
| Other liabilities  | **244150** | 203361 |
| **Total liabilities**  | **3014502** | 2824775 |
| **Equity** |  |  |
| Total shareholders' equity  | **192554** | 184973 |
| Non-controlling interests  | **7315** | 7300 |
| **Total equity**  | **199869** | 192273 |
| **Total liabilities and equity**  | **3214371** | 3017048 |

---

---

| | | |
|:---|:---|:---|
| Selected financial information |  |  |
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$m** | $m |
| Called up share capital | **8739** | 8973 |
| Capital resources<sup>1</sup> | **178496** | 172386 |
| Undated subordinated loan capital | **—** | 17 |
| Preferred securities and dated subordinated loan capital<sup>2</sup> | **37909** | 35258 |
| Risk-weighted assets | **886860** | 838254 |
| Total shareholders' equity  | **192554** | 184973 |
| Less: preference shares and other equity instruments | **(20716)** | (19070) |
| **Total ordinary shareholders' equity** | **171838** | 165903 |
| Less: goodwill and intangible assets (net of tax) | **(12281)** | (11608) |
| **Tangible ordinary shareholders' equity** | **159557** | 154295 |
| **Financial statistics** |  |  |
| Loans and advances to customers as a percentage of customer accounts (%) | **57.1** | 56.2 |
| Average total shareholders' equity to average total assets (%) | **6.01** | 6.12 |
| Net asset value per ordinary share at period end ($)<sup>3</sup> | **9.88** | 9.26 |
| Tangible net asset value per ordinary share at period end ($)<sup>3</sup> | **9.17** | 8.61 |
| Tangible net asset value per fully diluted ordinary share at period end ($) | **9.10** | 8.54 |
| Number of $0.50 ordinary shares in issue (millions) | **17478** | 17947 |
| Basic number of $0.50 ordinary shares outstanding (millions) | **17397** | 17918 |
| Basic number of $0.50 ordinary shares outstanding and dilutive potential ordinary shares (millions) | **17529** | 18062 |
| Closing foreign exchange translation rates to $: |  |  |
| $1: £ | **0.730** | 0.797 |
| $1: € | **0.852** | 0.964 |

---

1Capital resources are total regulatory capital, the calculation of which is set out on page 67.

2Including perpetual preferred securities.

3For the definition, see page <u>[38](#i05ae11a547a94c79ace545e789a2465a_0-3-1-3-11309827)</u>.

🡠A more detailed consolidated balance sheet is contained in the interim condensed consolidated financial statements on page 77.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Financial summary |  |  |

---

---

| | | |
|:---|:---|:---|
| Combined view of customer lending and customer deposits | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$m** | $m |
| Loans and advances to customers | **981722** | 930658 |
| Loans and advances to customers of disposal groups reported in 'Assets held for sale' | **2162** | 965 |
| – private banking business in Germany | **359** | 309 |
| – Germany custody business | **864** |  |
| – business in South Africa | **758** | 656 |
| – retail banking business in Bahrain | **181** |  |
| – other | **—** |  |
| Non-current assets held for sale | **125** | 12 |
| **Combined customer lending** | **984010** | 931635 |
| Currency translation | **—** | 43989 |
| **Combined customer lending at constant currency** | **984010** | 975624 |
| Customer accounts | **1718604** | 1654955 |
| Customer accounts reported in 'Liabilities of disposal groups held for sale' | **19088** | 5399 |
| – private banking business in Germany | **2662** | 2085 |
| – Germany custody business | **12392** |  |
| – business in South Africa | **3210** | 3294 |
| – retail banking business in Bahrain | **824** |  |
| – other | **—** | 20 |
| **Combined customer deposits** | **1737692** | 1660354 |
| Currency translation | **—** | 71244 |
| **Combined customer deposits at constant currency** | **1737692** | 1731598 |

---

---

| | | |
|:---|:---|:---|
| Customer accounts by country/territory | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$m** | $m |
| Hong Kong | **589873** | 575141 |
| UK | **560768** | 524251 |
| US | **96145** | 99278 |
| Singapore | **78277** | 76737 |
| Mainland China | **63098** | 63169 |
| France | **49872** | 40384 |
| Australia | **34065** | 31951 |
| Germany | **14752** | 23564 |
| Mexico | **27354** | 27525 |
| UAE | **29290** | 28008 |
| India | **30100** | 27199 |
| Taiwan | **18647** | 17067 |
| Malaysia | **18147** | 17038 |
| Egypt | **4541** | 4137 |
| Indonesia | **5388** | 5558 |
| Türkiye | **3711** | 3489 |
| Other | **94576** | 90459 |
| **At end of period** | **1718604** | 1654955 |

---

Balance sheet commentary compared with 31 December 2024

At 30 June 2025, total assets of $3.2tn were $197bn or 7% higher on

a reported basis, and increased $62bn or 2% on a constant currency

basis.

Assets

**Cash and balances at central banks** decreased by $21bn or 8%,

which included a $25m favourable impact of foreign currency

translation differences.The decrease was mainly in HSBC Bank plc,

reflecting a decline in Markets Treasury. Cash also declined in HSBC

UK, driven by increased customer lending and redeployment into

other asset classes. This was partly offset by an increase in our legal

entity in the US.

**Trading assets** rose by $19bn or 6%, mainly due to a favourable

impact of foreign currency translation differences of $15bn.

**Derivative assets** decreased by $19bn or 7%, which included a

favourable impact of foreign currency translation differences of

$22bn.The reduction reflected adverse mark to market movements

on foreign exchange contracts, in part driven by foreign exchange rate

volatility, despite an increase in volumes, mainly in HSBC Bank plc

and our legal entities in Asia.The decrease in derivative assets was

consistent with the decrease in derivative liabilities, as the underlying

risk is broadly matched.

**Loans and advances to customers** of $982bn were $51bn higher on

a reported basis. This included favourable effects of foreign currency

translation differences of $44bn.On a constant currency basis,

customer lending balances increased by $7bn.

The following movements are on a constant currency basis.

In our UK business, customer lending rose by $8bn, primarily driven

by continued growth in mortgage balances as well as increased

commercial lending.

In CIB, customer lending increased by $6bn. This was driven by term

lending growth in our main legal entities in Asia, including India,

Australia, Japan, Hong Kong and Indonesia, and from increases in the

US and the Middle East.

In IWPB, customer lending increased by $4bn, primarily driven by

wealth lending growth in the Private Bank, notably in our main legal

entity in Hong Kong.

In our Hong Kong business, customer lending decreased by $3bn,

due to a decrease in wholesale lending, reflecting low demand in the

current interest rate environment. It was also lower due to a reduction

in credit card balances.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Financial summary |  |  |

---

In Corporate Centre, customer lending decreased by $8bn from the

reclassification of home and other loans retained in France following

the disposal of our retail banking operations to 'financial investments

measured at fair value through other comprehensive income' in 1Q25

and subsequently to 'assets held for sale' in 2Q25.

**Reverse repurchase agreements – non-trading** rose by $31bn or

12%, primarily in HSBC Bank plc, including lower balances eligible for

netting.

**Financial investments** increased by $55bn or 11%, mainly in our

main legal entity in Hong Kong as well as in HSBC UK and HSBC Bank

plc, from the purchase of debt securities, as we redeployed our

commercial surplus to benefit from higher yield curves and enhance

our structural hedge.The increase was across both debt instruments

held at fair value through other comprehensive income and

instruments held at amortised cost.

**Assets held for sale** increased by $12bn or 43%. This increase

included the reclassification to held for sale of home and other loans

retained in France following the disposal of our retail banking

operations. It also included the reclassification of $1bn of assets from

our custody business in Germany following the announcement of the

planned sale of the business.

**Other assets** grew by $52bn or 21%, primarily reflecting an increase

in settlement accounts balances, notably in HSBC Bank plc and in the

US, from higher trading activity, compared with the seasonal

reduction in December 2024.

Liabilities

**Deposits by banks** increased by $24bn or 32%, reflecting an

increase in client inflows, notably in HSBC Bank plc and in our legal

entity in Hong Kong.There was also an increase in deposits by banks

in the US.

**Customer accounts** of $1,719bn increased by $64bn or 4% on a

reported basis. This included a favourable impact from foreign

currency translation differences of $71bn, mainly in our UK entities.

On a constant currency basis, customer accounts decreased by $8bn.

The following movements are on a constant currency basis.

In CIB, customer accounts decreased by $27bn, primarily in HSBC

Bank plc driven by the classification to 'liabilities of disposal groups

held for sale' of $12bn of deposits from our custody business in

Germany.There was also a reduction in the UK non-ringfenced bank,

primarily in GPS deposits, which declined during 1H25 following a

seasonal increase in 4Q24. This was partly offset by growth across

Asia and the Middle East.

In our Hong Kong business segment, customer accounts increased by

$15bn. This was driven by growth in retail deposits, reflecting broader

market growth.

In IWPB, customer accounts rose by $4bn, notably in the Private Bank

in our main legal entity in Hong Kong reflecting strong wealth deposit

inflows amidst market volatility.

**Repurchase agreements – non-trading** increased by $15bn or 8%,

primarily in the US for short-term funding and in our main legal

entities in mainland China due to higher client demand for short-term

funding.

**Financial liabilities designated at fair value** increased by $25bn or

18%, notably in HSBC Holdings reflecting $9bn in new debt

issuances in 1H25, and in HSBC Bank plc from increased medium-

term note issuances by our Debt and Equity Markets business.

**Liabilities of disposal groups held for sale** increased by $17bn or

59%, primarily due to the $12bn classification of liabilities from our

custody business in Germany following the announcement of the

planned sale of the business.

**Other liabilities** increased by $41bn or 20%, notably from a rise of

$27bn in settlement accounts in the US and in HSBC Bank plc from

an increase in trading activity, compared with the seasonal reduction

in December 2024.

Equity

**Total shareholders' equity**, including non-controlling interests,

increased by $8bn or 4% compared with 31 December 2024.

Profits generated of $12bn and net gains through other

comprehensive income ('OCI') of $9bn were partly offset by the

impact of dividends paid of $9bn, and the impact of our $5bn share

buy-back activities in 1H25.

The net gains through OCI of $9bn included $6bn of exchange

differences and a $2bn increase in the cash flow hedging reserve.

Financial investments

As part of our interest rate hedging strategy, we hold a portfolio of

debt instruments, reported within financial investments, which are

classified as hold-to-collect-and-sell.As a result, the change in value of

these instruments is recognised through 'debt instruments at fair

value through other comprehensive income' in equity.At 30 June

2025, we had recognised a pre-tax cumulative unrealised loss reserve

through other comprehensive income of $2.1bn related to these hold-

to-collect-and-sell positions, excluding investments held in our

insurance business.This compared with an unrealised loss of $3.8bn

at 31 December 2024, and reflected a $1.7bn pre-tax gain in 1H25,

inclusive of movements on related fair value hedges.

On 1 January 2025, we reclassified a portfolio of home and other

loans associated with the sale of our retail banking operations in

France to a hold-to-collect-and-sell business model, measuring it in

loans and advances at fair value through other comprehensive

income. Since reclassification and during 1H25, we recognised a fair

value pre-tax loss in other comprehensive income of $1.4bn on the

remeasurement of these financial instruments.

We also hold a portfolio of financial investments measured at

amortised cost, which are classified as hold-to-collect and are held to

manage our interest rate exposure. At 30 June 2025, the debt

instruments within this portfolio had a cumulative unrecognised loss

of $0.4bn, representing a $2.5bn improvement during 1H25.

Risk-weighted assets

RWAs of $886.9bn increased by $48.6bn during the first half of 2025,

primarily due to foreign currency translation differences of $28.7bn,

and asset size movements of $16.3bn, principally from our CIB and

UK businesses, and $5.2bn of asset quality movements in our Hong

Kong, CIB and UK business segments.

🡠 For further details on RWAs, see page 68.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Business segments |  |  |

---

Business segments

Basis of preparation

Our business segments – Hong Kong, UK, Corporate and Institutional

Banking, and International Wealth and Premier Banking – along with

Corporate Centre, are our reportable segments under IFRS 8 'Operating

Segments'. Reconciliations of the total constant currency business segment

results to the Group's reported results are presented on page 86.

The Group Operating Committee is considered the Chief Operating

Decision Maker ('CODM') for the purposes of identifying the Group's

reportable segments. Business segment results are assessed by the

CODM on the basis of constant currency performance. We separately

disclose 'notable items', as described on page <u>[18](#if90db0a0af6b417cb15a72b00e6556ad_19)</u>.

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

infrastructures 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. The intra-Group elimination items for business segments are

presented in Corporate Centre.

Constant currency results and notable items by business segment

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Constant currency results<sup>1</sup> | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** |
|  | **Hong**<br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate** <br>**Centre**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| Revenue<sup>2,3</sup> | **7848** | **6228** | **14117** | **7011** | **(1082)** | **34122** |
| ECL | **(864)** | **(323)** | **(299)** | **(453)** | **(2)** | **(1941)** |
| Operating expenses | **(2310)** | **(2624)** | **(7456)** | **(4468)** | **(164)** | **(17022)** |
| Share of profit in associates and joint ventures less impairment<sup>3</sup> | **—** | **—** | **—** | **2** | **649** | **651** |
| **Profit before tax** | **4674** | **3281** | **6362** | **2092** | **(599)** | **15810** |
| Loans and advances to customers (net)<sup>4</sup> | **230139** | **299631** | **304240** | **147523** | **189** | **981722** |
| Customer accounts | **517406** | **360494** | **564847** | **275504** | **353** | **1718604** |
|  | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 |
| Revenue<sup>2</sup> | 7432 | 5994 | 13333 | 6933 | 3365 | 37057 |
| ECL | (338) | (58) | (175) | (416) | (6) | (993) |
| Operating expenses | (2340) | (2403) | (7037) | (4277) | (135) | (16192) |
| Share of profit in associates and joint ventures less impairment |  |  |  | 27 | 1592 | 1619 |
| Profit before tax | 4754 | 3533 | 6121 | 2267 | 4816 | 21491 |
| Loans and advances to customers (net) | 236309 | 286915 | 300392 | 140795 | 8368 | 972779 |
| Customer accounts | 474140 | 352573 | 558629 | 266148 | 421 | 1651911 |

---

1In the current period, constant currency results are equal to reported as there is no currency translation.

2Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.

3Amounts in 'Revenue' include a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in BoCom. We have also recognised a

$1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in BoCom in 'Share of profit in associates and joint

ventures less impairment'. See Note 10 on page 93.

4 The reduction in loans and advances to customers in Corporate Centre includes the reclassification to 'financial investments measured at fair value through other

comprehensive income' of a portfolio of home and other loans retained following the disposal of our retail banking operations in France. With effect from

1 January 2025 we reclassified this portfolio to a hold-to-collect-and-sell business model, measuring it at fair value through other comprehensive income.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Notable items | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** |
|  | **Hong**<br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate** <br>**Centre**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| **Revenue** |  |  |  |  |  |  |
| Disposals, wind-downs, acquisitions and related costs<sup>1</sup> | **—** | **—** | **—** | **(57)** | **(82)** | **(139)** |
| Dilution loss of interest in BoCom associate<sup>2</sup> | **—** | **—** | **—** | **—** | **(1136)** | **(1136)** |
| **Operating expenses** |  |  |  |  |  |  |
| Disposals, wind-downs, acquisitions and related costs | **—** | **1** | **(179)** | **(5)** | **(44)** | **(227)** |
| Restructuring and other related costs<sup>3</sup> | **(9)** | **(48)** | **(217)** | **(79)** | **(263)** | **(616)** |
| **Impairment losses of interest in BoCom associate**<sup>2</sup> | **—** | **—** | **—** | **—** | **(1000)** | **(1000)** |
|  | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 |
| Revenue |  |  |  |  |  |  |
| Disposals, wind-downs, acquisitions and related costs<sup>4</sup> |  |  | (14) | 55 | 3530 | 3571 |
| Operating expenses |  |  |  |  |  |  |
| Disposals, wind-downs, acquisitions and related costs |  | 3 |  | (1) | (103) | (101) |
| Restructuring and other related costs<sup>5</sup> |  | 4 | 5 | 1 | 9 | 19 |

---

1Includes fair value losses on ADRs in Galicia received as part of the sale consideration for HSBC Argentina, which were sold in 2Q25.

2Amounts in 'Dilution loss of interest in BoCom associate' include a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in

BoCom. We have also recognised a $1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in BoCom in

'Impairment losses of interest in BoCom associate'. See Note 10 on page93.

3Amounts relate to restructuring provisions recognised in 2025 as well as reversals of restructuring provisions recognised during 2022.

4Includes a $4.8bn gain on disposal of our banking business in Canada, inclusive of a $0.3bn gain on the foreign exchange hedging of the sales proceeds, the

recycling of $0.6bn in foreign currency translation reserve losses and $0.4bn of other reserves recycling losses. This was partly offset by a $1.2bn impairment

recognised in relation to the sale of our business in Argentina.

5Relates to reversals of restructuring provisions recognised during 2022.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Business segments |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Reconciliation of reported results to constant currency results – business segments | Reconciliation of reported results to constant currency results – business segments | Reconciliation of reported results to constant currency results – business segments | Reconciliation of reported results to constant currency results – business segments | Reconciliation of reported results to constant currency results – business segments | Reconciliation of reported results to constant currency results – business segments | Reconciliation of reported results to constant currency results – business segments |
|  | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 |
|  | Hong<br>Kong<br>| UK | CIB | IWPB | Corporate<br>Centre<br>| Total |
|  | $m | $m | $m | $m | $m | $m |
| Revenue<sup>1</sup> |  |  |  |  |  |  |
| – Reported | 7408 | 5838 | 13534 | 7170 | 3342 | 37292 |
| – Currency translation | 24 | 156 | (201) | (237) | 23 | (235) |
| – Constant currency | 7432 | 5994 | 13333 | 6933 | 3365 | 37057 |
| ECL |  |  |  |  |  |  |
| – Reported | (336) | (58) | (187) | (479) | (6) | (1066) |
| – Currency translation | (2) |  | 12 | 63 |  | 73 |
| – Constant currency | (338) | (58) | (175) | (416) | (6) | (993) |
| Operating expenses |  |  |  |  |  |  |
| – Reported | (2333) | (2343) | (7083) | (4426) | (111) | (16296) |
| – Currency translation | (7) | (60) | 46 | 149 | (24) | 104 |
| – Constant currency | (2340) | (2403) | (7037) | (4277) | (135) | (16192) |
| Share of profit in associates and joint ventures |  |  |  |  |  |  |
| – Reported |  |  | 1 | 28 | 1597 | 1626 |
| – Currency translation |  |  | (1) | (1) | (5) | (7) |
| – Constant currency |  |  |  | 27 | 1592 | 1619 |
| Profit/(loss) before tax |  |  |  |  |  |  |
| – Reported | 4739 | 3437 | 6265 | 2293 | 4822 | 21556 |
| – Currency translation | 15 | 96 | (144) | (26) | (6) | (65) |
| – Constant currency | 4754 | 3533 | 6121 | 2267 | 4816 | 21491 |
| Loans and advances to customers (net) |  |  |  |  |  |  |
| – Reported  | 237372 | 264640 | 291451 | 137151 | 7643 | 938257 |
| – Currency translation | (1063) | 22275 | 8941 | 3644 | 725 | 34522 |
| – Constant currency | 236309 | 286915 | 300392 | 140795 | 8368 | 972779 |
| Customer accounts |  |  |  |  |  |  |
| – Reported  | 476469 | 325201 | 534018 | 257750 | 396 | 1593834 |
| – Currency translation | (2329) | 27372 | 24611 | 8398 | 25 | 58077 |
| – Constant currency | 474140 | 352573 | 558629 | 266148 | 421 | 1651911 |

---

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Reconciliation of reported results to constant currency results – RWAs | Reconciliation of reported results to constant currency results – RWAs | Reconciliation of reported results to constant currency results – RWAs | Reconciliation of reported results to constant currency results – RWAs | Reconciliation of reported results to constant currency results – RWAs | Reconciliation of reported results to constant currency results – RWAs | Reconciliation of reported results to constant currency results – RWAs |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** |
|  | **Hong**<br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** |
|  | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** |
| Risk-weighted assets |  |  |  |  |  |  |
| Reported | **140.6** | **153.0** | **411.2** | **91.0** | **91.1** | **886.9** |
| Constant currency | **140.6** | **153.0** | **411.2** | **91.0** | **91.1** | **886.9** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 |
| Risk-weighted assets |  |  |  |  |  |  |
| Reported | 143.7 | 133.5 | 388.0 | 85.7 | 87.4 | 838.3 |
| Currency translation | (1.2) | 12.3 | 13.2 | 3.7 | 1.2 | 29.2 |
| Constant currency | 142.5 | 145.8 | 401.2 | 89.4 | 88.6 | 867.5 |

---

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Business segments |  |  |

---

Fee and other income supplementary analysis

The following table presents an analysis of the components of fee and other income by business segment.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** |
|  | **Hong**<br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** |
|  | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** |
| Net fee income | **1435** | **907** | **2217** | **2085** | **(1)** | **6643** |
| Net income from financial instruments held for trading or managed <br>on a fair value basis<br>| **341** | **(16)** | **4416** | **422** | **5384** | **10547** |
| Insurance revenue<sup>1</sup> | **41** | **—** | **—** | **561** | **(33)** | **569** |
| Gain less impairment relating to sale of business operations | **—** | **—** | **—** | **(56)** | **22** | **(34)** |
| Other operating (expense)/income | **156** | **31** | **470** | **341** | **(1422)** | **(424)** |
| **Total** | **1973** | **922** | **7103** | **3353** | **3950** | **17301** |
| Banking book funding costs used to generate 'net income from <br>financial instruments held for trading or managed on a fair value <br>basis'<br>| **—** | **—** | **—** | **—** | **(4710)** | **(4710)** |
| Third-party net interest income from insurance | **—** | **—** | **—** | **218** | **—** | **218** |
| Notable items | **—** | **—** | **—** | **57** | **1218** | **1275** |
| **Fee and other income** | **1973** | **922** | **7103** | **3628** | **458** | **14084** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 |
|  | Hong<br>Kong<br>| UK | CIB | IWPB | Corporate<br>Centre<br>| Total |
|  | $bn | $bn | $bn | $bn | $bn | $bn |
| Net fee income | 1154 | 891 | 2223 | 1922 | 10 | 6200 |
| Net income from financial instruments held for trading or managed <br>on a fair value basis<br>| 292 | 7 | 3780 | 375 | 6062 | 10516 |
| Insurance revenue<sup>1</sup> | (8) |  |  | 580 | (20) | 552 |
| Gain less impairment relating to sale of business operations |  |  | (14) | 55 | 3214 | 3256 |
| Other operating (expense)/income | 61 | 44 | (18) | (136) | (94) | (143) |
| Total | 1499 | 942 | 5971 | 2796 | 9172 | 20381 |
| Banking book funding costs used to generate 'net income from <br>financial instruments held for trading or managed on a fair value <br>basis'<br>|  |  |  |  | (5509) | (5509) |
| Third-party net interest income from insurance |  |  |  | 216 |  | 216 |
| Notable items |  |  | 14 | (55) | (3530) | (3571) |
| Currency translation | 4 | 26 | 48 | 7 | 42 | 127 |
| Fee and other income | 1503 | 968 | 6033 | 2965 | 175 | 11644 |

---

1 Includes Group 'net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss',

'insurance finance expense' and 'insurance service result, but excludes the portion of insurance income reported in 'net fee income' (1H25: $149m, 1H24: $99m)

and 'other operating (expense)/income' (1H25: $253m, 1H24: $44m).

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Business segments |  |  |

---

Strategic transactions supplementary analysis

The following table presents the selected impacts of strategic transactions on the Group and our business segments for transactions that are

classified as material notable items. See page <u>[18](#if90db0a0af6b417cb15a72b00e6556ad_19)</u> for further information on material notable items and the impact of strategic transactions.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Constant currency results | Constant currency results | Constant currency results | Constant currency results | Constant currency results | Constant currency results | Constant currency results |
|  | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** |
|  | **Hong**<br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| Revenue | **—** | **—** | **—** | **(57)** | **(82)** | **(139)** |
| ECL | **—** | **—** | **—** | **—** | **—** | **—** |
| Operating expenses | **—** | **1** | **(179)** | **(5)** | **(44)** | **(227)** |
| Share of profit in associates and joint ventures | **—** | **—** | **—** | **—** | **—** | **—** |
| **Profit before tax** | **—** | **1** | **(179)** | **(62)** | **(126)** | **(366)** |
| – HSBC Innovation Banking | **—** | **—** | **—** | **—** | **—** | **—** |
| – retail banking operations in France | **—** | **—** | **—** | **—** | **—** | **—** |
| – banking business in Canada | **—** | **—** | **—** | **—** | **(2)** | **(2)** |
| – business in Argentina | **—** | **—** | **—** | **—** | **(108)** | **(108)** |
| – markets participation |  | **1** | **(179)** | **(62)** | **(16)** | **(256)** |
| of which: notable items |  |  |  |  |  |  |
| Revenue | **—** | **—** | **—** | **(57)** | **(82)** | **(139)** |
| **Profit before tax** | **—** | **1** | **(179)** | **(62)** | **(126)** | **(366)** |
| of which: distorting impact of operating results between<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;periods<br>|  |  |  |  |  |  |
| Revenue | **—** | **—** | **—** | **—** | **—** | **—** |
| **Profit/(loss) before tax** | **—** | **—** | **—** | **—** | **—** | **—** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 |
| Revenue |  | 496 | 380 | 3679 | 4555 |
| ECL |  | (43) | (20) |  | (63) |
| Operating expenses | 3 | (193) | (236) | (101) | (527) |
| Share of profit in associates and joint ventures |  |  |  |  |  |
| Profit before tax | 3 | 260 | 124 | 3578 | 3965 |
| – HSBC Innovation Banking<sup>1</sup> | 3 |  |  |  | 3 |
| – retail banking operations in France |  |  | 56 | (4) | 52 |
| – banking business in Canada |  | 144 | 67 | 4774 | 4985 |
| – business in Argentina |  | 116 | 1 | (1192) | (1075) |
| of which: notable items |  |  |  |  |  |
| Revenue |  |  | 55 | 3679 | 3734 |
| Profit before tax | 3 | (1) | 55 | 3578 | 3635 |
| of which: distorting impact of operating results between<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;periods<br>|  |  |  |  |  |
| Revenue |  | 496 | 325 |  | 821 |
| Profit before tax |  | 261 | 69 |  | 330 |

---

1Includes the impact of our acquisition of SVB UK, which in June 2023 changed its legal entity name to HSBC Innovation Bank Limited.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Business segments |  |  |

---

Supplementary tables for Wealth

Insurance business performance

The following table provides an analysis of the revenue of our insurance business for the period. It comprises income earned by IWPB insurance

manufacturing operations, income earned by wealth insurance distribution channels within IWPB, Hong Kong and UK business segments, and

consolidation adjustments.

---

| | | |
|:---|:---|:---|
| Total insurance revenue (constant currency)<sup>1</sup> | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| Net fee income | **149** | 99 |
| Insurance service result<sup>2</sup> | **794** | 693 |
| – release of contractual service margin | **732** | 660 |
| – risk adjustment release | **37** | 35 |
| – experience variance and other | **91** | 29 |
| – loss from onerous contracts | **(66)** | (31) |
| Investment income | **5311** | 2554 |
| – net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through <br>profit or loss<sup>2</sup><br>| **5124** | 2350 |
| – other investment income | **187** | 204 |
| Insurance finance expense<sup>2</sup> | **(5334)** | (2447) |
| Other income | **253** | 44 |
| **Revenue**<sup>1,3,4</sup> | **1173** | 943 |

---

1Constant currency results are derived by adjusting for period-on-period effects of foreign currency translation differences. The impact of foreign currency

translation differences on revenue was $9m unfavourable for 1H24 (reported: $952m).

2The Group consolidated income statement includes consolidation and elimination adjustments not reported within total insurance as follows: Group 'Insurance

service result' of $785m includes adjustments of $9m (1H24: $663m includes adjustments of $30m), Group 'net income from assets and liabilities of insurance

businesses, including related derivatives, measured at fair value through profit or loss' of $5,113m includes adjustments of $11m (1H24: $2,338m includes

adjustments of $12m), and Group 'Insurance finance expense' of $5,329m includes adjustments of $5m (1H24: $2,452m includes adjustments of $5m).

3Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.

4'Revenue' of $1,173m (1H24: $943m) is reported in our business segments: IWPB $1,133m (1H24: $919m), Hong Kong $37m (1H24: $19m) and UK $3m (1H24:

$5m). This comprises revenue from insurance manufacturing operations of $1,002m (1H24: $823m), and revenue from wealth retail distribution channels and

consolidation impacts of $171m (1H24: $120m).

Total insurance revenue

Revenue of $1.2bn reported in 1H25 reflected the following:

–Insurance service result of $0.8bn in 1H25 increased by $0.1bn

compared with 1H24 reflecting an increase to the release of CSM

driven by a higher closing CSM balance, and from positive

experience variances in Hong Kong and Singapore.

–Investment income of $5.3bn increased by $2.8bn compared with

1H24 reflecting the impact of interest rate reductions on our fixed

income investments, primarily in Hong Kong. This was offset by

Insurance finance expense of $5.3bn, which moves inversely with

investment income.

–Other income increased by $0.2bn from gains on reinsurance

contracts in Hong Kong, primarily offsetting losses on related

insurance contracts.

---

| | | |
|:---|:---|:---|
| Insurance key performance metrics | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| Annualised new business premiums of insurance manufacturing operations | **3753** | 2792 |
| Insurance new business contractual service margin<sup>1</sup> | **2033** | 1324 |
| Consolidated Group new business contractual service margin | **2267** | 1437 |
| Total insurance profit before tax | **777** | 581 |
| Net dividends of insurance manufacturing operations<sup>2</sup> | **262** | 524 |
| Insurance equity plus CSM net of tax ※ | **18881** | 17572 |

---

1'Insurance new business contractual service margin' includes new business contractual service margin earned by insurance manufacturing operations.

2'Net dividends of insurance manufacturing operations' include dividends paid to immediate parent companies of $377m (1H24: $569m) net of CET1 qualifying

injections to fund business growth of $115m (1H24: $45m).

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Business segments |  |  |

---

Insurance key performance metrics

Annualised new business premiums ('ANP') is used to assess new

insurance premiums generated by the business. It is calculated as

100% of annualised first year regular premiums and 10% of single

premiums, before reinsurance ceded. ANP in 1H25 increased by 34%

compared with 1H24, primarily from strong new business sales in

Hong Kong and a shift in product mix from single to multi-premium

products.

Insurance new business contractual service margin increased by

$0.7bn compared with 1H24, reflecting strong sales in Hong Kong

and increased sales of higher margin products. It also included a

$0.1bn increase from writing a new reinsurance contract in Hong

Kong.

Insurance equity plus CSM net of tax is a non-GAAP alternative

performance measure that provides information about our insurance

manufacturing operations' net asset value plus the future earnings

from in-force business. At 30 June 2025, insurance equity plus CSM

net of tax was $18,881m (31 December 2024: $17,025m; 30 June

2024: $17,572m).

At 30 June 2025, insurance equity plus CSM net of tax was calculated

as insurance manufacturing operations equity of $7,719m plus CSM

of $13,466m less tax of $2,304m. At 31 December 2024, it was

calculated as insurance manufacturing operations equity of $7,015m

plus CSM of $12,063m less tax of $2,053m. At 30 June 2024, it was

calculated as insurance manufacturing operations equity of $7,531m

plus CSM of $12,218m less tax of $2,177m.

Wealth balances

The following table shows the wealth balances, which include invested assets and wealth deposits. Invested assets comprise customer assets

either managed by our Asset Management business or by external third-party investment managers, as well as self-directed investments by our

customers.

---

| | | | |
|:---|:---|:---|:---|
| Reported wealth balances<sup>1</sup> | Reported wealth balances<sup>1</sup> | Reported wealth balances<sup>1</sup> | Reported wealth balances<sup>1</sup> |
|  | At | At | At |
|  | **30 Jun 2025** | 30 Jun 2024 | 31 Dec 2024 |
|  | **$bn** | $bn | $bn |
| Private Bank invested assets<sup>2</sup> | **430** | 390 | 395 |
| Retail invested assets | **455** | 412 | 409 |
| Asset Management third-party distribution<sup>3</sup> | **539** | 469 | 489 |
| **Reported invested assets**<sup>1</sup> | **1424** | 1271 | 1293 |
| – of which: The Hongkong and Shanghai Banking Corporation Limited | **712** | 606 | 645 |
| **Wealth deposits (Premier and Private Bank)**<sup>4</sup> | **590** | 530 | 555 |
| – of which: The Hongkong and Shanghai Banking Corporation Limited | **389** | 346 | 372 |
| **Total reported wealth balances** | **2014** | 1801 | 1848 |
| – of which: The Hongkong and Shanghai Banking Corporation Limited | **1101** | 952 | 1017 |

---

1Invested assets are not reported on the Group's balance sheet, except where it is deemed that we are acting as principal rather than agent in our role as

investment manager.

2Private Bank client balances, which comprises invested assets and customer deposits were $529bn (31 December 2024: $484bn; 30 June 2024: $479bn).

3Total assets under management manufactured by Asset Management, which includes third-party distribution and other components that are reported in the

Private Bank and Retail invested assets in the table above, were $808bn (31 December 2024: $731bn; 30 June 2024: $703bn).

4Premier and Private Bank deposits, which include Prestige deposits in Hang Seng Bank, form part of the total IWPB, Hong Kong and UK businesses' customer

accounts balance on page <u>[26](#if90db0a0af6b417cb15a72b00e6556ad_103)</u>.

Invested assets

'Net new invested assets' represents the net customer inflows from retail invested assets, Asset Management third-party distribution and

Private Bank invested assets. It excludes all customer deposits.

---

| | | | |
|:---|:---|:---|:---|
| Invested assets | Invested assets | Invested assets | Invested assets |
|  | Half-year to | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 | 31 Dec 2024 |
|  | **$bn** | $bn | $bn |
| Opening balance | **1293** | 1191 | 1271 |
| Net new invested assets<sup>1</sup> | **44** | 32 | 32 |
| – of which: The Hongkong and Shanghai Banking Corporation Limited | **27** | 38 | 9 |
| Net market movements | **52** | 36 | 61 |
| Foreign exchange and others | **35** | 12 | (71) |
| **Closing balance** | **1424** | 1271 | 1293 |

---

1Net new invested assets in the half-year to 30 June 2024 primarily included outflows from liquidity products in Asset Management.

In 1H25, net new invested assets of $44bn reflected increases in Asset Management of $31bn, which included $16bn of inflows related to

Private Bank, Retail and Insurance customers, with the remaining coming from investment into money market and emerging markets fixed

income instruments from institutional clients and from passive products. Including inflows from Asset Management, there were net new

invested assets in Retail of $20bn and in Private Bank of $9bn, particularly in Asia.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Legal entities |  |  |

---

Legal entities

Analysis of reported results by legal entities

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| HSBC reported profit/(loss) before tax and balance sheet data | HSBC reported profit/(loss) before tax and balance sheet data | HSBC reported profit/(loss) before tax and balance sheet data | HSBC reported profit/(loss) before tax and balance sheet data | HSBC reported profit/(loss) before tax and balance sheet data | HSBC reported profit/(loss) before tax and balance sheet data | HSBC reported profit/(loss) before tax and balance sheet data | HSBC reported profit/(loss) before tax and balance sheet data | HSBC reported profit/(loss) before tax and balance sheet data | HSBC reported profit/(loss) before tax and balance sheet data | HSBC reported profit/(loss) before tax and balance sheet data |
|  | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** |
|  | **HSBC UK** <br>**Bank plc**<br>| **HSBC** <br>**Bank plc**<br>| **The** <br>**Hongkong** <br>**and** <br>**Shanghai** <br>**Banking** <br>**Corporation** <br>**Limited**<br>| **HSBC** <br>**Bank** <br>**Middle** <br>**East** <br>**Limited**<br>| **HSBC** <br>**North** <br>**America** <br>**Holdings** <br>**Inc.**<br>| **HSBC** <br>**Bank** <br>**Canada**<br>| **Grupo** <br>**Financiero** <br>**HSBC, S.A.** <br>**de C.V.**<br>| **Other** <br>**trading** <br>**entities**<br>| **Holding** <br>**companies,** <br>**shared** <br>**service** <br>**centres and** <br>**intra-Group** <br>**eliminations**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| Net interest income | **5453** | **773** | **8100** | **762** | **1045** | **—** | **1080** | **642** | **(1034)** | **16821** |
| Net fee income | **857** | **859** | **3262** | **261** | **731** | **—** | **304** | **477** | **(108)** | **6643** |
| Net income from financial <br>instruments held for trading or <br>managed on a fair value basis<br>| **270** | **3433** | **6063** | **169** | **294** | **—** | **212** | **103** | **3** | **10547** |
| Net income/(expense) from assets <br>and liabilities of insurance <br>businesses, including related <br>derivatives, measured at fair value <br>through profit and loss<br>| **—** | **424** | **4662** | **—** | **—** | **—** | **23** | **5** | **(1)** | **5113** |
| Insurance finance income/(expense) | **—** | **(482)** | **(4834)** | **—** | **—** | **—** | **(15)** | **—** | **2** | **(5329)** |
| Insurance service result | **—** | **90** | **668** | **—** | **—** | **—** | **31** | **—** | **(4)** | **785** |
| Other income/(expense)<sup>1</sup> | **63** | **261** | **(582)** | **62** | **249** | **—** | **30** | **(60)** | **(481)** | **(458)** |
| **Net operating income before** <br>**change in expected credit losses** <br>**and other credit impairment** <br>**charges**<sup>2</sup><br>| **6643** | **5358** | **17339** | **1254** | **2319** | **—** | **1665** | **1167** | **(1623)** | **34122** |
| Change in expected credit losses <br>and other credit impairment charges<br>| **(340)** | **(99)** | **(910)** | **(48)** | **(150)** | **—** | **(383)** | **(13)** | **2** | **(1941)** |
| **Net operating income** | **6303** | **5259** | **16429** | **1206** | **2169** | **—** | **1282** | **1154** | **(1621)** | **32181** |
| Total operating expenses | **(2685)** | **(3837)** | **(7302)** | **(638)** | **(1679)** | **—** | **(958)** | **(686)** | **733** | **(17052)** |
| Impairment of goodwill and other <br>intangible assets<br>| **—** | **31** | **(1)** | **—** | **—** | **—** | **—** | **—** | **—** | **30** |
| **Operating profit** | **3618** | **1453** | **9126** | **568** | **490** | **—** | **324** | **468** | **(888)** | **15159** |
| Share of profit/(loss) in associates <br>and joint ventures less impairment<sup>3</sup><br>| **—** | **40** | **258** | **—** | **—** | **—** | **6** | **349** | **(2)** | **651** |
| **Profit before tax** | **3618** | **1493** | **9384** | **568** | **490** | **—** | **330** | **817** | **(890)** | **15810** |
|  | **%** | **%** | **%** | **%** | **%** | **%** | **%** | **%** | **%** | **%** |
| Share of HSBC's profit before tax  | **22.9** | **9.4** | **59.4** | **3.6** | **3.1** | **—** | **2.1** | **5.2** | **(5.7)** | **100.0** |
| Cost efficiency ratio  | **40.4** | **71.0** | **42.1** | **50.9** | **72.4** | **—** | **57.5** | **58.8** | **45.2** | **49.9** |
| **Balance sheet data** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| Loans and advances to customers <br>(net)<br>| **305661** | **107058** | **459814** | **21736** | **57287** | **—** | **25074** | **5092** | **—** | **981722** |
| Total assets  | **466225** | **987456** | **1455104** | **62470** | **281282** | **—** | **49284** | **30587** | **(118037)** | **3214371** |
| Customer accounts | **371420** | **306014** | **871247** | **35390** | **96145** | **—** | **27354** | **11001** | **33** | **1718604** |
| Risk-weighted assets<sup>4,5</sup> | **158035** | **147816** | **416794** | **25606** | **77352** | **—** | **32711** | **53366** | **875** | **886860** |

---

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Legal entities |  |  |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| HSBC reported profit/(loss) before tax and balance sheet data (continued) | HSBC reported profit/(loss) before tax and balance sheet data (continued) | HSBC reported profit/(loss) before tax and balance sheet data (continued) | HSBC reported profit/(loss) before tax and balance sheet data (continued) | HSBC reported profit/(loss) before tax and balance sheet data (continued) | HSBC reported profit/(loss) before tax and balance sheet data (continued) | HSBC reported profit/(loss) before tax and balance sheet data (continued) | HSBC reported profit/(loss) before tax and balance sheet data (continued) | HSBC reported profit/(loss) before tax and balance sheet data (continued) | HSBC reported profit/(loss) before tax and balance sheet data (continued) | HSBC reported profit/(loss) before tax and balance sheet data (continued) |
|  | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 |
|  | HSBC UK <br>Bank plc<br>| HSBC <br>Bank plc<br>| The <br>Hongkong <br>and <br>Shanghai <br>Banking <br>Corporation <br>Limited<br>| HSBC <br>Bank <br>Middle <br>East <br>Limited<br>| HSBC <br>North <br>America <br>Holdings <br>Inc.<br>| HSBC <br>Bank <br>Canada<br>| Grupo <br>Financiero <br>HSBC, <br>S.A. de <br>C.V.<br>| Other <br>trading <br>entities<br>| Holding <br>companies, <br>shared <br>service <br>centres and <br>intra-Group <br>eliminations<br>| Total |
|  | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| Net interest income | 5063 | 832 | 7454 | 804 | 730 | 300 | 1187 | 1618 | (1077) | 16911 |
| Net fee income | 810 | 827 | 2689 | 260 | 674 | 129 | 328 | 530 | (47) | 6200 |
| Net income from financial instruments <br>held for trading or managed on a fair <br>value basis<br>| 276 | 2786 | 5996 | 167 | 492 | 33 | 265 | 182 | 319 | 10516 |
| Net income/(expense) from assets and <br>liabilities of insurance businesses, <br>including related derivatives, measured <br>at fair value through profit and loss<br>|  | 545 | 1722 |  |  |  | 30 | 84 | (5) | 2376 |
| Insurance finance income/(expense) |  | (678) | (1708) |  |  |  | (40) | (68) | 8 | (2486) |
| Insurance service result |  | 130 | 524 |  |  |  | 41 | (9) | (24) | 662 |
| Other income/(expense)<sup>1</sup> | 81 | 51 | 288 | 25 | 239 |  | 31 | (602) | 3000 | 3113 |
| Net operating income before change in <br>expected credit losses and other credit <br>impairment charges<sup>2</sup><br>| 6230 | 4493 | 16965 | 1256 | 2135 | 462 | 1842 | 1735 | 2174 | 37292 |
| Change in expected credit losses and <br>other credit impairment charges<br>| (62) | 66 | (455) | (102) | (33) | (40) | (386) | (59) | 5 | (1066) |
| Net operating income  | 6168 | 4559 | 16510 | 1154 | 2102 | 422 | 1456 | 1676 | 2179 | 36226 |
| Total operating expenses | (2427) | (3142) | (6873) | (618) | (1677) | (236) | (998) | (950) | 671 | (16250) |
| Impairment of goodwill and other <br>intangible assets<br>| (7) | (1) | (24) |  | (2) |  |  | (11) | (1) | (46) |
| Operating profit | 3734 | 1416 | 9613 | 536 | 423 | 186 | 458 | 715 | 2849 | 19930 |
| Share of profit in associates and joint <br>ventures<br>|  | 20 | 1280 |  |  |  | 8 | 319 | (1) | 1626 |
| Profit before tax | 3734 | 1436 | 10893 | 536 | 423 | 186 | 466 | 1034 | 2848 | 21556 |
|  | % | % | % | % | % | % | % | % | % | % |
| Share of HSBC's profit before tax  | 17.3 | 6.7 | 50.5 | 2.5 | 2.0 | 0.9 | 2.2 | 4.7 | 13.2 | 100 |
| Cost efficiency ratio  | 39.1 | 70.0 | 40.7 | 49.2 | 78.6 | 51.1 | 54.2 | 55.4 | (30.8) | 43.7 |
| Balance sheet data | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| Loans and advances to customers (net) | 270262 | 107957 | 453642 | 20506 | 55809 |  | 25449 | 4632 |  | 938257 |
| Total assets  | 416096 | 902722 | 1353949 | 57320 | 267310 |  | 47289 | 31385 | (101068) | 2975003 |
| Customer accounts | 334566 | 295557 | 799086 | 32934 | 93060 |  | 28997 | 9532 | 102 | 1593834 |
| Risk-weighted assets<sup>4,5</sup> | 131472 | 137075 | 401244 | 26082 | 76755 |  | 31286 | 54982 | 4866 | 835118 |

---

1Other income/(expense) in this context comprises gain on acquisitions, impairment gain/(loss) relating to the sale of our retail banking operations in France, our

banking business in Canada and other operating income/(expense).

2Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.

3We have recognised a $1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in BoCom in 'Impairment of interest in

associate'. See Note 10 on page 93.

4Risk-weighted assets are non-additive across the principal entities due to market risk diversification effects within the Group.

5Balances are on a third-party Group consolidated basis.

---

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

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Legal entities |  |  |

---

Summary information – legal entities and selected countries

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Legal entity reported and constant currency results¹ | Legal entity reported and constant currency results¹ | Legal entity reported and constant currency results¹ | Legal entity reported and constant currency results¹ | Legal entity reported and constant currency results¹ | Legal entity reported and constant currency results¹ | Legal entity reported and constant currency results¹ | Legal entity reported and constant currency results¹ | Legal entity reported and constant currency results¹ | Legal entity reported and constant currency results¹ | Legal entity reported and constant currency results¹ |
|  | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** |
|  | **HSBC UK**<br>**Bank plc**<br>| **HSBC** <br>**Bank plc**<br>| **The** <br>**Hongkong** <br>**and** <br>**Shanghai** <br>**Banking** <br>**Corporation** <br>**Limited**<br>| **HSBC** <br>**Bank** <br>**Middle** <br>**East** <br>**Limited**<br>| **HSBC** <br>**North** <br>**America** <br>**Holdings** <br>**Inc.**<br>| **HSBC** <br>**Bank** <br>**Canada**<br>| **Grupo**<br>**Financiero**<br>**HSBC, S.A.**<br>**de C.V.**<br>| **Other** <br>**trading** <br>**entities**<sup>2</sup><br>| **Holding**<br>**companies,**<br>**shared**<br>**service**<br>**centres and**<br>**intra-Group**<br>**eliminations**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| Revenue<sup>3,4</sup> | **6643** | **5358** | **17339** | **1254** | **2319** | **—** | **1665** | **1167** | **(1623)** | **34122** |
| ECL | **(340)** | **(99)** | **(910)** | **(48)** | **(150)** | **—** | **(383)** | **(13)** | **2** | **(1941)** |
| Operating expenses | **(2685)** | **(3806)** | **(7303)** | **(638)** | **(1679)** | **—** | **(958)** | **(686)** | **733** | **(17022)** |
| Share of profit in associates and joint <br>ventures less impairment<sup>4</sup><br>| **—** | **40** | **258** | **—** | **—** | **—** | **6** | **349** | **(2)** | **651** |
| **Profit/(loss) before tax** | **3618** | **1493** | **9384** | **568** | **490** | **—** | **330** | **817** | **(890)** | **15810** |
| Loans and advances to customers <br>(net)<br>| **305661** | **107058** | **459814** | **21736** | **57287** | **—** | **25074** | **5092** | **—** | **981722** |
| Customer accounts | **371420** | **306014** | **871247** | **35390** | **96145** | **—** | **27354** | **11001** | **33** | **1718604** |

---

1In the current period, constant currency results are equal to reported, as there is no currency translation.

2Other trading entities includes the results of entities located in Türkiye, Egypt and Saudi Arabia (including our share of the results of SAB) which do not

consolidate into HSBC Bank Middle East Limited. These entities had an aggregated impact on the Group's reported profit before tax of $770m.

3Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.

4 Amounts in 'Revenue' include a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in BoCom. We have also recognised a

$1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in BoCom in 'Share of profit in associates and joint

ventures less impairment'. See Note 10 on page 93.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Legal entity results: notable items | Legal entity results: notable items | Legal entity results: notable items | Legal entity results: notable items | Legal entity results: notable items | Legal entity results: notable items | Legal entity results: notable items | Legal entity results: notable items | Legal entity results: notable items | Legal entity results: notable items | Legal entity results: notable items |
|  | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** |
|  | **HSBC UK** <br>**Bank plc**<br>| **HSBC** <br>**Bank plc**<br>| **The** <br>**Hongkong** <br>**and**<br>**Shanghai** <br>**Banking** <br>**Corporation** <br>**Limited**<br>| **HSBC** <br>**Bank** <br>**Middle** <br>**East** <br>**Limited**<br>| **HSBC** <br>**North** <br>**America** <br>**Holdings** <br>**Inc.**<br>| **HSBC** <br>**Bank** <br>**Canada**<br>| **Grupo**<br>**Financiero**<br>**HSBC, S.A.**<br>**de C.V.**<br>| **Other** <br>**trading** <br>**entities**<br>| **Holding**<br>**companies,**<br>**shared**<br>**service**<br>**centres and**<br>**intra-Group**<br>**eliminations**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| **Revenue** |  |  |  |  |  |  |  |  |  |  |
| Disposals, wind-downs, acquisitions <br>and related costs<sup>1</sup><br>| **—** | **(56)** | **—** | **—** | **—** | **—** | **—** | **—** | **(83)** | **(139)** |
| Dilution loss of interest in BoCom <br>associate<sup>2</sup><br>| **—** | **—** | **(1136)** | **—** | **—** | **—** | **—** | **—** | **—** | **(1136)** |
| **Operating expenses** |  |  |  |  |  |  |  |  |  |  |
| Disposals, wind-downs, acquisitions and <br>related costs<br>| **1** | **(166)** | **(9)** | **(6)** | **(17)** | **—** | **—** | **—** | **(30)** | **(227)** |
| Restructuring and other related costs<sup>3</sup> | **(82)** | **(209)** | **(139)** | **(13)** | **(40)** | **—** | **(15)** | **(28)** | **(90)** | **(616)** |
| **Impairment losses of interest in** <br>**BoCom associate**<sup>2</sup><br>| **—** | **—** | **(1000)** | **—** | **—** | **—** | **—** | **—** | **—** | **(1000)** |

---

1Includes fair value losses on ADRs in Galicia received as a part of the sale consideration for HSBC Argentina, which were sold in 2Q25.

2Amounts in 'Dilution loss of interest in BoCom associate' include a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in

BoCom. We have also recognised a $1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in BoCom in

'Impairment losses of interest in BoCom associate'. See Note 10 on page93.

3Amounts relate to restructuring provisions recognised in 2025 as well as reversals of restructuring recognised during 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Selected country/territory results<sup>1</sup> | Selected country/territory results<sup>1</sup> | Selected country/territory results<sup>1</sup> | Selected country/territory results<sup>1</sup> | Selected country/territory results<sup>1</sup> |
|  | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** |
|  | **UK**<sup>2</sup> | **Hong**<br>**Kong**<br>| **Mainland**<br>**China**<br>| **US** |
|  | **$m** | **$m** | **$m** | **$m** |
| Revenue<sup>3,4</sup> | **12189** | **12229** | **987** | **2252** |
| ECL | **(370)** | **(742)** | **(77)** | **(150)** |
| Operating expenses | **(7394)** | **(4567)** | **(1551)** | **(1679)** |
| Share of profit/(loss) in associates and joint ventures less impairment<sup>4</sup> | **40** | **(12)** | **203** | **—** |
| **Profit before tax** | **4465** | **6908** | **(438)** | **423** |
| Loans and advances to customers (net) | **349405** | **271663** | **43030** | **57287** |
| Customer accounts | **560768** | **589873** | **63098** | **96145** |

---

1In the current period, constant currency results are equal to reported, as there is no currency translation.

2UK includes HSBC UK Bank plc (ring-fenced bank), HSBC Bank plc (non-ring-fenced bank), the ultimate holding company, HSBC Holdings plc, and the separately

incorporated group of service companies ('ServCo group').

3Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.

4Amounts in 'Revenue' include a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in BoCom. We have also recognised a

$1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in BoCom in 'Share of profit/(loss) in associates and joint

ventures less impairment'. See Note 10 on page 93.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **35** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Legal entities |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Selected country/territory results: notable items | Selected country/territory results: notable items | Selected country/territory results: notable items | Selected country/territory results: notable items | Selected country/territory results: notable items |
|  | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** |
|  | **UK**<sup>1</sup> | **Hong**<br>**Kong**<br>| **Mainland**<br>**China**<br>| **US** |
|  | **$m** | **$m** | **$m** | **$m** |
| **Revenue** |  |  |  |  |
| Disposals, wind-downs, acquisitions and related costs | **(87)** | **—** | **—** | **—** |
| Restructuring and other related costs | **76** | **5** | **5** | **—** |
| Dilution loss of interest in BoCom associate<sup>2</sup> | **—** |  | **(1136)** | **—** |
| **Operating expenses** |  |  |  |  |
| Disposals, wind-downs, acquisitions and related costs | **(10)** | **—** | **(2)** | **(4)** |
| Restructuring and other related costs | **(281)** | **(97)** | **(33)** | **(39)** |
| Impairment losses of interest in BoCom associate<sup>2</sup> | **—** |  | **(1000)** | **—** |

---

1UK includes HSBC UK Bank plc (ring-fenced bank), HSBC Bank plc (non-ring-fenced bank), the ultimate holding company, HSBC Holdings plc, and the ServCo

group.

2Amounts in 'Dilution loss of interest in BoCom associate' include a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in

BoCom. We have also recognised a $1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in BoCom in

'Impairment losses of interest in BoCom associate'. See Note 10 on page 93.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Legal entity reported and constant currency results (continued) | Legal entity reported and constant currency results (continued) | Legal entity reported and constant currency results (continued) | Legal entity reported and constant currency results (continued) | Legal entity reported and constant currency results (continued) | Legal entity reported and constant currency results (continued) | Legal entity reported and constant currency results (continued) | Legal entity reported and constant currency results (continued) | Legal entity reported and constant currency results (continued) | Legal entity reported and constant currency results (continued) | Legal entity reported and constant currency results (continued) |
|  | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 |
|  | HSBC UK <br>Bank plc<br>| HSBC <br>Bank plc<br>| The<br>Hongkong<br>and<br>Shanghai <br>Banking <br>Corporation <br>Limited<br>| HSBC <br>Bank <br>Middle <br>East <br>Limited<br>| HSBC <br>North <br>America <br>Holdings <br>Inc.<br>| HSBC <br>Bank <br>Canada<br>| Grupo<br>Financiero<br>HSBC, <br>S.A.<br>de C.V.<br>| Other <br>trading <br>entities<sup>1</sup><br>| Holding<br>companies,<br>shared<br>service<br>centres and<br>intra-Group<br>eliminations<br>| Total |
|  | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| Revenue<sup>2</sup> |  |  |  |  |  |  |  |  |  |  |
| – Reported | 6230 | 4493 | 16965 | 1256 | 2135 | 462 | 1842 | 1735 | 2174 | 37292 |
| – Currency translation | 162 | 80 | 13 |  |  | (27) | (259) | (232) | 28 | (235) |
| – Constant currency | 6392 | 4573 | 16978 | 1256 | 2135 | 435 | 1583 | 1503 | 2202 | 37057 |
| ECL |  |  |  |  |  |  |  |  |  |  |
| – Reported | (62) | 66 | (455) | (102) | (33) | (40) | (386) | (59) | 5 | (1066) |
| – Currency translation | 1 | 8 |  | 1 |  | 2 | 54 | 10 | (3) | 73 |
| – Constant currency | (61) | 74 | (455) | (101) | (33) | (38) | (332) | (49) | 2 | (993) |
| Operating expenses |  |  |  |  |  |  |  |  |  |  |
| – Reported | (2434) | (3143) | (6897) | (618) | (1679) | (236) | (998) | (961) | 670 | (16296) |
| – Currency translation | (63) | (64) | (9) |  |  | 14 | 142 | 114 | (30) | 104 |
| – Constant currency | (2497) | (3207) | (6906) | (618) | (1679) | (222) | (856) | (847) | 640 | (16192) |
| Share of profit/(loss) in <br>associates and joint ventures<br>|  |  |  |  |  |  |  |  |  |  |
| – Reported |  | 20 | 1280 |  |  |  | 8 | 319 | (1) | 1626 |
| – Currency translation |  | 1 | (7) |  |  |  | (1) |  |  | (7) |
| – Constant currency |  | 21 | 1273 |  |  |  | 7 | 319 | (1) | 1619 |
| Profit/(loss) before tax |  |  |  |  |  |  |  |  |  |  |
| – Reported | 3734 | 1436 | 10893 | 536 | 423 | 186 | 466 | 1034 | 2848 | 21556 |
| – Currency translation | 100 | 25 | (3) | 1 |  | (11) | (64) | (108) | (5) | (65) |
| – Constant currency | 3834 | 1461 | 10890 | 537 | 423 | 175 | 402 | 926 | 2843 | 21491 |
| Loans and advances to <br>customers (net)<br>|  |  |  |  |  |  |  |  |  |  |
| – Reported  | 270262 | 107957 | 453642 | 20506 | 55809 |  | 25449 | 4632 |  | 938257 |
| – Currency translation | 22749 | 9993 | 2882 | 8 |  |  | (778) | (332) |  | 34522 |
| – Constant currency | 293011 | 117950 | 456524 | 20514 | 55809 |  | 24671 | 4300 |  | 972779 |
| Customer accounts |  |  |  |  |  |  |  |  |  |  |
| – Reported  | 334566 | 295557 | 799086 | 32934 | 93060 |  | 28997 | 9532 | 102 | 1593834 |
| – Currency translation | 28161 | 25672 | 5766 | 24 |  |  | (886) | (660) |  | 58077 |
| – Constant currency | 362727 | 321229 | 804852 | 32958 | 93060 |  | 28111 | 8872 | 102 | 1651911 |

---

1Other trading entities includes the results of entities located in Türkiye, Egypt and Saudi Arabia (including our share of the results of SAB), which do not

consolidate into HSBC Bank Middle East Limited. These entities had an aggregated impact on the Group's reported profit before tax of $728m and constant

currency profit before tax of $660m.

2Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **36** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Legal entities |  |  |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Legal entity results: notable items (continued) | Legal entity results: notable items (continued) | Legal entity results: notable items (continued) | Legal entity results: notable items (continued) | Legal entity results: notable items (continued) | Legal entity results: notable items (continued) | Legal entity results: notable items (continued) | Legal entity results: notable items (continued) | Legal entity results: notable items (continued) | Legal entity results: notable items (continued) | Legal entity results: notable items (continued) |
|  | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 |
|  | HSBC UK <br>Bank plc<br>| HSBC <br>Bank plc<br>| The <br>Hongkong <br>and<br>Shanghai<br>Banking<br>Corporation<br>Limited<br>| HSBC <br>Bank <br>Middle <br>East <br>Limited<br>| HSBC <br>North <br>America <br>Holdings <br>Inc.<br>| HSBC <br>Bank <br>Canada<br>| Grupo<br>Financiero<br>HSBC, S.A.<br>de C.V.<br>| Other <br>trading <br>entities<br>| Holding<br>companies,<br>shared<br>service<br>centres and<br>intra-Group<br>eliminations<br>| Total |
|  | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| Revenue |  |  |  |  |  |  |  |  |  |  |
| Disposals, wind-downs, <br>acquisitions and related <br>costs<sup>1</sup><br>|  | (131) |  |  |  |  |  |  | 3702 | 3571 |
| Operating expenses |  |  |  |  |  |  |  |  |  |  |
| Disposals, wind-downs, <br>acquisitions and related <br>costs<br>| 3 | (5) |  |  | (15) | (36) |  | (1) | (47) | (101) |
| Restructuring and other <br>related costs<sup>2</sup><br>| 4 | 11 |  |  |  |  |  |  | 4 | 19 |

---

1Includes a $4.8bn gain on disposal of our banking business in Canada, inclusive of a $0.3bn gain on the foreign exchange hedging of the sale proceeds, the

recycling of $0.6bn in foreign currency translation reserve losses and $0.4bn of other reserves recycling losses. This was partly offset by a $1.2bn impairment

recognised in relation to the sale of our business in Argentina.

2Relate to reversals of restructuring provisions recognised during 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Selected country/territory results | Selected country/territory results | Selected country/territory results | Selected country/territory results | Selected country/territory results |
|  | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 |
|  | UK<sup>1</sup> | Hong<br>Kong<br>| Mainland<br>China<br>| US |
|  | $m | $m | $m | $m |
| Revenue<sup>2</sup> |  |  |  |  |
| – Reported | 10570 | 10898 | 2060 | 2122 |
| – Currency translation | 276 | 35 | (10) |  |
| – Constant currency | 10846 | 10933 | 2050 | 2122 |
| ECL |  |  |  |  |
| – Reported  | 15 | (386) | (30) | (33) |
| – Currency translation | 7 | (1) |  |  |
| – Constant currency | 22 | (387) | (30) | (33) |
| Operating expenses |  |  |  |  |
| – Reported | (6499) | (4305) | (1376) | (1679) |
| – Currency translation | (167) | (13) | 7 |  |
| – Constant currency | (6666) | (4318) | (1369) | (1679) |
| Share of profit/(loss) in associates and joint ventures |  |  |  |  |
| – Reported  | 22 | 9 | 1256 |  |
| – Currency translation | 1 |  | (6) |  |
| – Constant currency | 23 | 9 | 1250 |  |
| Profit before tax |  |  |  |  |
| – Reported | 4108 | 6216 | 1910 | 410 |
| – Currency translation | 117 | 20 | (9) |  |
| – Constant currency | 4225 | 6236 | 1901 | 410 |
| Loans and advances to customers (net) |  |  |  |  |
| – Reported  | 311486 | 274806 | 44821 | 55809 |
| – Currency translation | 26219 | (1421) | 617 |  |
| – Constant currency | 337705 | 273385 | 45438 | 55809 |
| Customer accounts |  |  |  |  |
| – Reported  | 505118 | 543776 | 57452 | 93060 |
| – Currency translation | 42516 | (2812) | 792 |  |
| – Constant currency | 547634 | 540964 | 58244 | 93060 |

---

1UK includes HSBC UK Bank plc (ring-fenced bank), HSBC Bank plc (non-ring-fenced bank), the ultimate holding company, HSBC Holdings plc, and the ServCo

group.

2Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Selected country/territory results: notable items  | Selected country/territory results: notable items  | Selected country/territory results: notable items  | Selected country/territory results: notable items  | Selected country/territory results: notable items  |
|  | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 | Half-year to 30 Jun 2024 |
|  | UK<sup>1</sup> | Hong<br>Kong<br>| Mainland<br>China<br>| US |
|  | $m | $m | $m | $m |
| Revenue |  |  |  |  |
| Disposals, wind-downs, acquisitions and related costs | 205 |  |  |  |
| Operating expenses |  |  |  |  |
| Disposals, wind-downs, acquisitions and related costs | (28) | (1) | (5) | (15) |
| Restructuring and other related costs | 9 |  |  |  |

---

1UK includes HSBC UK Bank plc (ring-fenced bank), HSBC Bank plc (non-ring-fenced bank), the ultimate holding company, HSBC Holdings plc, and the ServCo

group.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **37** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Legal entities |  |  |

---

Analysis by country/territory

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Profit/(loss) before tax by country/territory within business segments | Profit/(loss) before tax by country/territory within business segments | Profit/(loss) before tax by country/territory within business segments | Profit/(loss) before tax by country/territory within business segments | Profit/(loss) before tax by country/territory within business segments | Profit/(loss) before tax by country/territory within business segments | Profit/(loss) before tax by country/territory within business segments |
|  | **Hong**<br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| UK<sup>1</sup> | **(169)** | **3281** | **92** | **(57)** | **1318** | **4465** |
| – of which: HSBC UK Bank plc (ring-fenced bank) | **—** | **3457** | **73** | **48** | **40** | **3618** |
| – of which: HSBC Bank plc (non-ring-fenced bank) | **—** | **—** | **677** | **181** | **(43)** | **815** |
| – of which: Holdings and other | **(169)** | **(176)** | **(658)** | **(286)** | **1321** | **32** |
| France | **—** | **—** | **122** | **14** | **(22)** | **114** |
| Germany | **—** | **—** | **59** | **6** | **(1)** | **64** |
| Hong Kong | **4853** | **—** | **1217** | **986** | **(148)** | **6908** |
| Australia | **—** | **—** | **239** | **66** | **(6)** | **299** |
| India | **(1)** | **—** | **767** | **57** | **108** | **931** |
| Indonesia | **—** | **—** | **111** | **5** | **(1)** | **115** |
| Mainland China<sup>2</sup> | **(13)** | **—** | **460** | **8** | **(893)** | **(438)** |
| Malaysia | **(1)** | **—** | **180** | **83** | **(6)** | **256** |
| Singapore | **2** | **—** | **441** | **305** | **(15)** | **733** |
| Taiwan | **—** | **—** | **136** | **78** | **(3)** | **211** |
| Egypt | **—** | **—** | **228** | **53** | **(6)** | **275** |
| UAE | **—** | **—** | **312** | **149** | **(22)** | **439** |
| Saudi Arabia<sup>3</sup> | **—** | **—** | **47** | **—** | **345** | **392** |
| US | **—** | **—** | **476** | **80** | **(133)** | **423** |
| Canada | **—** | **—** | **—** | **—** | **(2)** | **(2)** |
| Mexico | **—** | **—** | **238** | **122** | **(30)** | **330** |
| Other<sup>4</sup> | **3** | **—** | **1237** | **137** | **(1082)** | **295** |
| **Half-year to 30 Jun 2025** | **4674** | **3281** | **6362** | **2092** | **(599)** | **15810** |
| UK<sup>1</sup> | (144) | 3437 | (9) | 1 | 823 | 4108 |
| – of which: HSBC UK Bank plc (ring-fenced bank) |  | 3579 | 72 | 49 | 34 | 3734 |
| – of which: HSBC Bank plc (non-ring-fenced bank) |  |  | 608 | 219 | (131) | 696 |
| – of which: Holdings and other | (144) | (142) | (689) | (267) | 920 | (322) |
| France |  |  | 132 | 28 | (171) | (11) |
| Germany |  |  | 169 | 19 | 3 | 191 |
| Hong Kong | 4844 |  | 763 | 812 | (203) | 6216 |
| Australia |  |  | 229 | 88 | (8) | 309 |
| India |  |  | 660 | 47 | 91 | 798 |
| Indonesia |  |  | 105 | 13 |  | 118 |
| Mainland China<sup>2</sup> | 22 |  | 532 | (42) | 1398 | 1910 |
| Malaysia |  |  | 182 | 77 | (5) | 254 |
| Singapore |  |  | 415 | 328 | (11) | 732 |
| Taiwan |  |  | 150 | 65 | (4) | 211 |
| Egypt |  |  | 269 | 63 | (15) | 317 |
| UAE |  |  | 216 | 208 | (34) | 390 |
| Saudi Arabia<sup>3</sup> |  |  | 63 |  | 317 | 380 |
| US |  |  | 447 | 74 | (111) | 410 |
| Canada<sup>5</sup> |  |  | 152 | 71 | 4491 | 4714 |
| Mexico |  |  | 312 | 149 | 5 | 466 |
| Other<sup>6</sup> | 17 |  | 1478 | 292 | (1744) | 43 |
| Half-year to 30 Jun 2024 | 4739 | 3437 | 6265 | 2293 | 4822 | 21556 |

---

1UK includes results from the ultimate holding company, HSBC Holdings plc, and the ServCo group.

2Includes our share of the profits of our associate, BoCom. Amount in 1H25 includes a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of

our shareholding in BoCom. We have also recognised a $1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in

BoCom. See Note 10 on page 93.

3Includes the results of HSBC Saudi Arabia and our share of the profits of our associate, SAB.

4Corporate Centre includes the profit and loss impact of inter-company debt eliminations of $605m.

5 Corporate Centre includes a gain of $4.5bn on the sale of our banking business in Canada excluding the fair value movements on the foreign exchange hedging

of the sale, which is booked in HSBC Overseas Holdings (UK) Limited.

6 Corporate Centre includes an impairment loss of $1.2bn relating to the sale of our business in Argentina.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **38** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Alternative performance measures |  |  |

---

Alternative performance measures

The following tables provide the calculation, definition and reconciliation of alternative performance measures to the closest reported

performance measure. For further details and an explanation of their basis of preparation, including constant currency, notable items and

material notable items, and the impact of strategic transactions and hyperinflationary accounting, see page <u>[18](#if90db0a0af6b417cb15a72b00e6556ad_19)</u>.

---

| | |
|:---|:---|
| **Alternative performance measure** | **Definition** |
| Reported revenue excluding notable items | Reported revenue after excluding notable items reported under revenue |
| Reported profit before tax excluding notable items | Reported profit before tax after excluding notable items reported under revenue less <br>notable items reported under operating expenses |
| Constant currency revenue excluding notable items | Reported revenue excluding notable items and the impact of foreign exchange <br>translation |
| Constant currency profit before tax excluding notable items | Reported profit before tax excluding notable items and the impact of foreign <br>exchange translation |
| Constant currency revenue excluding notable items and <br>strategic transactions<br>| Reported revenue excluding notable items, strategic transactions and the impact <br>of foreign exchange translation |
| Constant currency profit before tax excluding notable items <br>and strategic transactions<br>| Reported profit before tax excluding notable items, strategic transactions and the <br>impact of foreign exchange translation |
| Return on average ordinary shareholders' equity ('RoE') | Profit attributable to the ordinary shareholders  |
| Return on average ordinary shareholders' equity ('RoE') |  |
| Return on average ordinary shareholders' equity ('RoE') | Average ordinary shareholders' equity |
| Return on average tangible equity ('RoTE') | Profit attributable to the ordinary shareholders, excluding impairment <br>of goodwill and other intangible assets |
| Return on average tangible equity ('RoTE') |  |
| Return on average tangible equity ('RoTE') | Average ordinary shareholders' equity adjusted for goodwill and intangibles |
| Return on average tangible equity ('RoTE') excluding <br>notable items | Profit attributable to the ordinary shareholders, excluding impairment of goodwill <br>&nbsp;&nbsp;&nbsp;&nbsp;and other intangible assets and notable items |
| Return on average tangible equity ('RoTE') excluding <br>notable items |  |
| Return on average tangible equity ('RoTE') excluding <br>notable items | Average ordinary shareholders' equity adjusted for goodwill <br>&nbsp;&nbsp;&nbsp;&nbsp;and intangibles and notable items |
| Net asset value per ordinary share | Total ordinary shareholders' equity<sup>1</sup> |
| Net asset value per ordinary share |  |
| Net asset value per ordinary share | Basic number of ordinary shares in issue after deducting own shares held |
| Tangible net asset value per ordinary share | Tangible ordinary shareholders' equity<sup>2</sup> |
| Tangible net asset value per ordinary share |  |
| Tangible net asset value per ordinary share | Basic number of ordinary shares in issue after deducting own shares held |
| Post-tax return on average total assets | Profit after tax |
| Post-tax return on average total assets |  |
| Post-tax return on average total assets | &nbsp;&nbsp;&nbsp;&nbsp;Average total assets  |
| Average total shareholders' equity on average total assets | Average total shareholders' equity |
| Average total shareholders' equity on average total assets |  |
| Average total shareholders' equity on average total assets | Average total assets |
| Banking net interest income | Banking net interest income adjusts our reported NII, primarily for the impact of <br>funding trading and fair value activities reported in interest expense and to exclude <br>third party insurance NII<sup>3</sup> |
| Expected credit losses and other credit impairment <br>charges as % of average gross loans and advances to <br>customers | Annualised constant currency ECL |
| Expected credit losses and other credit impairment <br>charges as % of average gross loans and advances to <br>customers |  |
| Expected credit losses and other credit impairment <br>charges as % of average gross loans and advances to <br>customers | Constant currency average gross loans and advances to customers |
| Expected credit losses and other credit impairment <br>charges as % of average gross loans and advances to <br>customers, including held for sale | Annualised constant currency ECL |
| Expected credit losses and other credit impairment <br>charges as % of average gross loans and advances to <br>customers, including held for sale |  |
| Expected credit losses and other credit impairment <br>charges as % of average gross loans and advances to <br>customers, including held for sale | Constant currency average gross loans and advances to customers,<br> including held for sale |
| Target basis operating expenses | Reported operating expenses excluding notable items, foreign exchange <br>translation and other excluded items |
| Basic earnings per share excluding material notable items <br>and related impacts | Profit attributable to ordinary shareholders excluding material notable <br>items and related impacts |
| Basic earnings per share excluding material notable items <br>and related impacts |  |
| Basic earnings per share excluding material notable items <br>and related impacts | Weighted average number of ordinary shares outstanding after deducting own<br> shares held |
| Multi-jurisdictional client revenue | Total client revenue we generate from clients that hold a relationship with <br>us that generates revenue in more than one market |

---

1Total ordinary shareholders' equity is total shareholders' equity less non-cumulative preference shares and capital securities.

2Tangible ordinary shareholders' equity is total ordinary shareholders' equity excluding goodwill and other intangible assets (net of deferred tax).

3For details on the calculation of banking NII, see page <u>[21](#if90db0a0af6b417cb15a72b00e6556ad_55)</u>.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **39** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Alternative performance measures |  |  |

---

---

| | | |
|:---|:---|:---|
| Constant currency revenue and profit before tax excluding notable items and strategic transactions | Constant currency revenue and profit before tax excluding notable items and strategic transactions | Constant currency revenue and profit before tax excluding notable items and strategic transactions |
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| **Revenue**  |  |  |
| Reported | **34122** | 37292 |
| Notable items | **1275** | (3571) |
| **Reported revenue excluding notable items** | **35397** | 33721 |
| Currency translation<sup>1</sup> |  | (228) |
| **Constant currency revenue excluding notable items** | **35397** | 33493 |
| Constant currency impact of strategic transactions (distorting impact of operating results between periods)<sup>2</sup> | **—** | (821) |
| **Constant currency revenue excluding notable items and strategic transactions** | **35397** | 32672 |
| **Profit before tax** |  |  |
| Reported | **15810** | 21556 |
| Notable items | **3118** | (3489) |
| **Reported profit before tax excluding notable items** | **18928** | 18067 |
| Currency translation<sup>1</sup> |  | (61) |
| **Constant currency profit before tax excluding notable items** | **18928** | 18006 |
| Constant currency impact of strategic transactions (distorting impact of operating results between periods)<sup>2</sup> | **—** | (330) |
| **Constant currency profit before tax excluding notable items and strategic transactions** | **18928** | 17676 |

---

1Currency translation on the reported balance excluding currency translation on notable items.

2For more details of strategic transactions, please refer to page <u>[29](#if90db0a0af6b417cb15a72b00e6556ad_106)</u>.

---

| | | |
|:---|:---|:---|
| Return on average ordinary shareholders' equity, return on average tangible equity and return on average tangible equity excluding notable items | Return on average ordinary shareholders' equity, return on average tangible equity and return on average tangible equity excluding notable items | Return on average ordinary shareholders' equity, return on average tangible equity and return on average tangible equity excluding notable items |
|  | Half-year ended | Half-year ended |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| **Profit after tax** |  |  |
| Profit attributable to the ordinary shareholders of the parent company | **11510** | 16586 |
| Impairment of goodwill and other intangible assets (net of tax) | **24** | 123 |
| **Profit attributable to ordinary shareholders, excluding goodwill and other intangible assets impairment** | **11534** | 16709 |
| Impact of notable items<sup>1</sup> | **2714** | (3625) |
| **Profit attributable to the ordinary shareholders, excluding goodwill, other intangible assets impairment and notable** <br>**items**<br>| **14248** | 13084 |
| **Equity** |  |  |
| Average total shareholders' equity | **189446** | 186603 |
| Effect of average preference shares and other equity instruments | **(19501)** | (18088) |
| **Average ordinary shareholders' equity** | **169945** | 168515 |
| Effect of goodwill and other intangibles (net of deferred tax) | **(11861)** | (11573) |
| **Average tangible equity** | **158084** | 156942 |
| Average impact of notable items | **(543)** | (2605) |
| **Average tangible equity excluding notable items** | **157541** | 154337 |
| **Ratio** | **%** | % |
| Return on average ordinary shareholders' equity (annualised) | **13.7** | 19.8 |
| Return on average tangible equity (annualised) | **14.7** | 21.4 |
| Return on average tangible equity excluding notable items (annualised) | **18.2** | 17.0 |

---

1For details of notable items, please refer to page <u>[26](#if90db0a0af6b417cb15a72b00e6556ad_103)</u>.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **40** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Alternative performance measures |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Return on average tangible equity by business segment | Return on average tangible equity by business segment | Return on average tangible equity by business segment | Return on average tangible equity by business segment | Return on average tangible equity by business segment | Return on average tangible equity by business segment | Return on average tangible equity by business segment |
|  | **Half-year ended 30 Jun 2025** | **Half-year ended 30 Jun 2025** | **Half-year ended 30 Jun 2025** | **Half-year ended 30 Jun 2025** | **Half-year ended 30 Jun 2025** | **Half-year ended 30 Jun 2025** |
|  | **Hong**<br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| **Profit before tax** | **4674** | **3281** | **6362** | **2092** | **(599)** | **15810** |
| Tax expense | **(852)** | **(911)** | **(1414)** | **(434)** | **242** | **(3369)** |
| **Profit after tax** | **3822** | **2370** | **4948** | **1658** | **(357)** | **12441** |
| Less attributable to: preference shareholders, other equity <br>holders, non-controlling interests<br>| **(424)** | **(112)** | **(197)** | **(93)** | **(105)** | **(931)** |
| **Profit attributable to ordinary shareholders of the parent** <br>**company**<br>| **3398** | **2258** | **4751** | **1565** | **(462)** | **11510** |
| Other adjustments | **146** | **111** | **(94)** | **(6)** | **(133)** | **24** |
| **Profit attributable to ordinary shareholders** | **3544** | **2369** | **4657** | **1559** | **(595)** | **11534** |
| Average tangible shareholders' equity  | **20479** | **20412** | **55525** | **18666** | **43002** | **158084** |
| RoTE (%) (annualised) | **34.9** | **23.4** | **16.9** | **16.8** | **(2.8)** | **14.7** |
|  | Half-year ended 30 Jun 2024 | Half-year ended 30 Jun 2024 | Half-year ended 30 Jun 2024 | Half-year ended 30 Jun 2024 | Half-year ended 30 Jun 2024 | Half-year ended 30 Jun 2024 |
| Profit before tax | 4739 | 3437 | 6265 | 2293 | 4822 | 21556 |
| Tax expense | (707) | (947) | (1561) | (520) | (156) | (3891) |
| Profit after tax | 4032 | 2490 | 4704 | 1773 | 4666 | 17665 |
| Less attributable to: preference shareholders, other equity <br>holders, non-controlling interests<br>| (533) | (113) | (211) | (59) | (163) | (1079) |
| Profit attributable to ordinary shareholders of the parent company | 3499 | 2377 | 4493 | 1714 | 4503 | 16586 |
| Other adjustments | 105 | 112 | (242) | (30) | 178 | 123 |
| Profit attributable to ordinary shareholders  | 3604 | 2489 | 4251 | 1684 | 4681 | 16709 |
| Average tangible shareholders' equity | 18891 | 18481 | 54649 | 19211 | 45710 | 156942 |
| RoTE (%) (annualised) | 38.4 | 27.1 | 15.6 | 17.6 | 20.6 | 21.4 |

---

---

| | | |
|:---|:---|:---|
| Net asset value and tangible net asset value per ordinary share | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$m** | $m |
| Total shareholders' equity | **192554** | 184973 |
| Preference shares and other equity instruments  | **(20716)** | (19070) |
| **Total ordinary shareholders' equity** | **171838** | 165903 |
| Goodwill and intangible assets (net of deferred tax) | **(12281)** | (11608) |
| **Tangible ordinary shareholders' equity** | **159557** | 154295 |
| Basic number of $0.50 ordinary shares outstanding, after deducting own shares held | **17397** | 17918 |
| **Value per share** | **$** | $|
| Net asset value per ordinary share | **9.88** | 9.26 |
| Tangible net asset value per ordinary share | **9.17** | 8.61 |

---

---

| | | |
|:---|:---|:---|
| Post-tax return and average total shareholders' equity on average total assets | Half-year ended | Half-year ended |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| Profit after tax | **12441** | 17665 |
| Average total shareholders' equity | **189446** | 186603 |
| Average total assets | **3150154** | 3031753 |
| **Ratios** | **%** | % |
| Post-tax return on average total assets (annualised) | **0.8** | 1.2 |
| Average total shareholders' equity to average total assets | **6.0** | 6.2 |

---

---

| | | |
|:---|:---|:---|
| ECL and other credit impairment charges as % of average gross loans and advances to customers, and other credit impairment charges as % <br>of average gross loans and advances to customers, including held for sale | ECL and other credit impairment charges as % of average gross loans and advances to customers, and other credit impairment charges as % <br>of average gross loans and advances to customers, including held for sale | ECL and other credit impairment charges as % of average gross loans and advances to customers, and other credit impairment charges as % <br>of average gross loans and advances to customers, including held for sale |
|  | Half-year ended | Half-year ended |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| Expected credit losses and other credit impairment charges ('ECL') | **(1941)** | (1066) |
| Currency translation | **—** | 73 |
| **Constant currency** | **(1941)** | (993) |
| Average gross loans and advances to customers | **962347** | 947479 |
| Currency translation | **25449** | 29070 |
| **Constant currency** | **987796** | 976549 |
| Average gross loans and advances to customers, including held for sale | **963813** | 973409 |
| Currency translation | **25494** | 28553 |
| **Constant currency** | **989307** | 1001962 |
| **Ratios** | **%** | % |
| Expected credit losses and other credit impairment charges (annualised) as % of average gross loans and advances to customers | **0.40** | 0.20 |
| Expected credit losses and other credit impairment charges (annualised) as % of average gross loans and advances to customers, <br>including held for sale<br>| **0.40** | 0.20 |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **41** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Alternative performance measures |  |  |

---

---

| | | |
|:---|:---|:---|
| Target basis operating expenses | Target basis operating expenses | Target basis operating expenses |
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| Reported operating expenses | **17022** | 16296 |
| **Notable items** | **(843)** | (82) |
| – disposals, acquisitions and related costs | **(227)** | (101) |
| – restructuring and other related costs<sup>1</sup> | **(616)** | 19 |
| Currency translation<sup>2</sup> | **—** | (101) |
| Excluding the constant currency impact of the sale of our business in Argentina and banking business in Canada<sup>3</sup> | **—** | (372) |
| Excluding the impact of retranslating prior period costs of hyperinflationary economies at constant currency foreign exchange rate | **—** | 23 |
| **Target basis operating expenses** | **16179** | 15764 |

---

1Amounts relate to restructuring provisions recognised in 2024 and 2025 and reversals of restructuring provisions recognised during 2022.

2Currency translation on reported operating expenses, excluding currency translation on notable items.

3This represents the business as usual costs, which are not classified as notable items relating to our business in Argentina and banking business in Canada, on a

constant currency basis. This does not include the disposal costs that relate to these transactions.

---

| | | |
|:---|:---|:---|
| Basic earnings per share excluding material notable items and related impacts | Basic earnings per share excluding material notable items and related impacts | Basic earnings per share excluding material notable items and related impacts |
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| **Profit attributable to shareholders of company** | **12057** | 17112 |
| Coupon payable on capital securities classified as equity | **(547)** | (526) |
| **Profit attributable to ordinary shareholders of company** | **11510** | 16586 |
| Dilution and impairment losses of interest in associate | **1988** |  |
| Impact of disposals, wind-downs, acquisitions & related costs | **283** | (3812) |
| – of which: impact of the sale of our banking business in Canada<sup>1</sup> | **(1)** | (4949) |
| – of which: impact of the sale of our business in Argentina | **98** | 1192 |
| – of which: Others | **186** | (55) |
| **Profit attributable to ordinary shareholders of company excluding material notable items and related impacts** | **13781** | 12774 |
| **Number of shares** |  |  |
| Weighted average basic number of ordinary shares (millions) | **17646** | 18666 |
| Basic earnings per share ($) | **0.65** | 0.89 |
| **Basic earnings per share excluding material notable items and related impacts ($)** | **0.78** | 0.68 |

---

1Represents gain on sale of our banking business in Canada recognised on completion, inclusive of the earnings recognised by the banking business from 30 June

2022, the recycling of losses in foreign currency translation reserves and other reserves, and gain on the foreign exchange hedging of the sale proceeds.

Multi-jurisdictional revenue

Multi-jurisdictional revenue is a financial metric we use to assess our

ability to drive value from our international network.

In our wholesale businesses, we identify a client as multi-jurisdictional

if they hold a relationship with us that generates revenue in any

market outside of where the primary relationship is managed. A client

is defined as a mastergroup (HSBC's own client groupings) that

includes both the parent and, where relevant, any subsidiaries.

Multi-jurisdictional client revenue is a component of wholesale client

revenue and represents the total client revenue we generate from

multi-jurisdictional clients. Wholesale client revenue is derived by

excluding from wholesale revenue the revenue we generate from

client facilitation in fixed income and equities, as well as other non-

client revenue.

---

| | | |
|:---|:---|:---|
| Wholesale multi-jurisdictional client revenue | Wholesale multi-jurisdictional client revenue | Wholesale multi-jurisdictional client revenue |
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$bn** | $bn |
| **Wholesale revenue** | **20.3** | 19.6 |
| Allocated revenue and other<sup>1</sup> | **(1.2)** | (1.1) |
| Client facilitation in fixed income and equities | **(3.7)** | (2.7) |
| **Wholesale client revenue** | **15.4** | 15.8 |
| – clients banked in multiple jurisdictions ('multi-jurisdictional') | **9.6** | 9.7 |
| – domestic only clients | **5.8** | 6.1 |

---

1Including allocations of Market Treasury revenue, HSBC Holdings interest expense and hyperinflationary accounting adjustments, and interest earned on capital

held in the business segments.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **42** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

Risk

We recognise that the primary role of risk management is to help

protect our customers, business, colleagues, shareholders and the

communities that we serve, while ensuring we are able to support

our strategy and provide sustainable growth.

All our people are responsible for the management of risk, with the

ultimate accountability residing with the Board. Our Group Risk and

Compliance function, led by the Group Chief Risk and Compliance

Officer, plays an important role in reinforcing our culture and values.

We are focused on creating an environment that encourages our

people to speak up and do the right thing.

Group Risk and Compliance is independent from our businesses,

including our sales and trading functions, to provide challenge,

oversight and appropriate balance in risk/return decisions.

We aim to use a comprehensive risk management approach across

the organisation and across all risk types, underpinned by our culture

and values. This is outlined in our risk management framework,

including the key principles and practices that we employ in managing

material risks. The framework fosters continuous monitoring,

promotes risk awareness, and encourages sound operational and

strategic decision making. It also supports a consistent approach to

identifying, assessing, managing and reporting the risks we accept

and incur in our activities. We continue to actively review and develop

our risk management framework and enhance our approach to

managing risk.

🡠A summary of our current policies and practices regarding the management

of risk is set out in the 'Risk management' section on pages 127 to 130 of

the 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 global 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 through the continued

embedding of our 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 through risk policy and guideline updates and further

development of our risk metrics and assessments to help monitor

and 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 into

new markets 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

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 139 of the Annual

Report and Accounts 2024.

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

of $1,099bn increased by $57bn on a reported basis compared with

31 December 2024. Gross loans and advances to customers

increased by $51.5bn and gross loans and advances to banks

increased by $5.5bn. This included total favourable foreign exchange

movements of $48.2bn.

On a constant currency basis, the increase of $8.8bn was driven by an

$8.5bn rise in wholesale loans and advances to customers and a

$1.7bn rise in loans and advances to banks. These were partly offset

by a $1.4bn decrease in personal loans and advances to customers.

The rise in wholesale loans and advances to customers was driven by

an increase in balances in HSBC UK (up $3.4bn) and in Asia (up

$3.3bn), across multiple industry sectors; and in the Middle East (up

$1.3bn), mainly in manufacturing and 'wholesale and retail trade,

repair of motor vehicles and motorcycles'.

The rise in loans and advances to banks was driven by higher

exposures in our entities in Asia (up $4.0bn), partly offset by lower

balances in HSBC UK (down $1.4bn) and in HSBC Bank plc (down

$1.2bn).

The decrease in personal loans and advances to customers was

driven by the reclassification to 'Assets held for sale' of our home and

other retail loans retained in France ($7.2bn), as well as lower credit

card balances in our entities in Asia (down $1bn). This was partly

offset by mortgage growth of $4.3bn, mainly in HSBC UK (up $3.5bn),

and higher other personal lending in our entities in Asia (up $2.6bn).

There was an increase in stage 2 loans and advances to banks and

customers of $16.7bn on a constant currency basis. This was mainly

driven by updates to our wholesale probability of default ('PD')

models, which resulted in a shift of balances between stage 1 and 2,

mainly in Asia. The balances transferred to stage 2 consisted of up-to-

date loans mainly in the 'Good' and 'Satisfactory' credit quality

buckets.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **43** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

At 30 June 2025, the allowance for ECL of $10.8bn increased by

$0.5bn compared with 31 December 2024, including adverse foreign

exchange movements of $0.4bn, and write-offs of $2.0bn. The

$10.8bn allowance comprised $10.3bn in respect of assets held at

amortised cost, $0.4bn in respect of loan commitments and financial

guarantees, and $0.1bn in respect of debt instruments measured at

fair value through other comprehensive income ('FVOCI').

On a constant currency basis, the allowance for ECL in relation to

personal and wholesale loans and advances to customers remained

stable from 31 December 2024. This was attributable to:

–a broadly unchanged allowance for ECL in wholesale loans and

advances to customers, which included a $0.1bn increase in

stages 1 and 2, offset by a $0.1bn decrease in stage 3; and

–a broadly unchanged allowance for ECL in personal loans and

advances to customers across all stages.

The ECL charge for 1H25 was $1.9bn (1H24: $1.1bn), inclusive of

recoveries. The ECL charge comprised: $1.1bn in respect of

wholesale lending, of which the stage 3 charge was $0.8bn; and

$0.8bn in respect of personal lending, of which $0.5bn was in stage 3.

Wholesale lending charges were recognised mainly in our legal

entities in Hong Kong ($0.7bn). This included charges related to the

Hong Kong commercial real estate sector of $0.5bn. This reflected

updates to our models used for ECL calculations, an increase in

allowances for new defaulted exposures, as well as the over-supply

of non-residential properties putting continued downward pressure on

rental and capital values.

🡠For further details on ECL charges in each of our business segments, see

page 26 and below.

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. The

allowance for ECL increased from $10.3bn at 31 December 2024 to $10.8bn at 30 June 2025.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment |
|  | **Gross carrying/nominal amount** | **Gross carrying/nominal amount** | **Gross carrying/nominal amount** | **Gross carrying/nominal amount** | **Gross carrying/nominal amount** | **Gross carrying/nominal amount** | **Allowance for ECL**<sup>1</sup> | **Allowance for ECL**<sup>1</sup> | **Allowance for ECL**<sup>1</sup> | **Allowance for ECL**<sup>1</sup> | **Allowance for ECL**<sup>1</sup> | **Allowance for ECL**<sup>1</sup> |
|  | **Hong** <br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** | **Hong** <br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| Loans and advances to <br>customers at amortised <br>cost<br>| **233677** | **301611** | **307233** | **149110** | **234** | **991865** | **(3537)** | **(1980)** | **(2994)** | **(1587)** | **(45)** | **(10143)** |
| Loans and advances to <br>banks at amortised cost<br>| **12145** | **6779** | **67285** | **18386** | **3002** | **107597** | **(1)** | **(2)** | **(8)** | **(3)** | **(1)** | **(15)** |
| Other financial assets <br>measured at amortised <br>cost<br>| **48153** | **100864** | **611863** | **61501** | **68249** | **890630** | **(23)** | **(23)** | **(50)** | **(25)** | **(1)** | **(122)** |
| – cash and balances at <br>central banks<br>| **6228** | **52987** | **167701** | **18745** | **699** | **246360** | **—** | **—** | **—** | **—** | **—** | **—** |
| – Hong Kong <br>Government certificates <br>of indebtedness<br>| **—** | **—** | **—** | **—** | **42592** | **42592** | **—** | **—** | **—** | **—** | **—** | **—** |
| – reverse repurchase <br>agreements – non-<br>trading<br>| **4020** | **19322** | **253279** | **5518** | **1065** | **283204** | **—** | **—** | **—** | **—** | **—** | **—** |
| – financial investments | **33016** | **25836** | **64104** | **27829** | **15438** | **166223** | **(2)** | **(1)** | **(4)** | **(7)** | **—** | **(14)** |
| – assets held for sale<sup>2</sup> | **—** | **9** | **1897** | **3171** | **3** | **5080** | **—** | **—** | **(5)** | **(6)** | **—** | **(11)** |
| – other assets<sup>3</sup> | **4889** | **2710** | **124882** | **6238** | **8452** | **147171** | **(21)** | **(22)** | **(41)** | **(12)** | **(1)** | **(97)** |
| **Total on-balance sheet** | **293975** | **409254** | **986381** | **228997** | **71485** | **1990092** | **(3561)** | **(2005)** | **(3052)** | **(1615)** | **(47)** | **(10280)** |
| Loan and other credit-<br>related commitments<br>| **111631** | **106862** | **356822** | **116165** | **225** | **691705** | **(29)** | **(103)** | **(211)** | **(9)** | **—** | **(352)** |
| Financial guarantees | **647** | **1098** | **13180** | **1680** | **—** | **16605** | **(5)** | **(14)** | **(24)** | **(1)** | **—** | **(44)** |
| **Total off-balance sheet**<sup>4</sup> | **112278** | **107960** | **370002** | **117845** | **225** | **708310** | **(34)** | **(117)** | **(235)** | **(10)** | **—** | **(396)** |
| **At 30 Jun 2025** | **406253** | **517214** | **1356383** | **346842** | **71710** | **2698402** | **(3595)** | **(2122)** | **(3287)** | **(1625)** | **(47)** | **(10676)** |
|  | **Fair value** | **Fair value** | **Fair value** | **Fair value** | **Fair value** | **Fair value** | **Memorandum allowance for ECL**<sup>5</sup> | **Memorandum allowance for ECL**<sup>5</sup> | **Memorandum allowance for ECL**<sup>5</sup> | **Memorandum allowance for ECL**<sup>5</sup> | **Memorandum allowance for ECL**<sup>5</sup> | **Memorandum allowance for ECL**<sup>5</sup> |
|  | **Hong** <br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** | **Hong** <br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| **Debt instruments** <br>**measured at FVOCI**<br>| **138366** | **31888** | **159488** | **58149** | **8017** | **395908** | **(2)** | **(1)** | **(18)** | **(15)** | **(27)** | **(63)** |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **44** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied – by business segment (continued) |
|  | Gross carrying/nominal amount | Gross carrying/nominal amount | Gross carrying/nominal amount | Gross carrying/nominal amount | Gross carrying/nominal amount | Gross carrying/nominal amount | Allowance for ECL<sup>1</sup> | Allowance for ECL<sup>1</sup> | Allowance for ECL<sup>1</sup> | Allowance for ECL<sup>1</sup> | Allowance for ECL<sup>1</sup> | Allowance for ECL<sup>1</sup> |
|  | Hong <br>Kong<br>| UK | CIB | IWPB | Corporate<br>Centre<br>| Total | Hong <br>Kong<br>| UK | CIB | IWPB | Corporate<br>Centre<br>| Total |
|  | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| Loans and advances to <br>customers at amortised <br>cost<br>| 238416 | 269141 | 287842 | 137789 | 7185 | 940373 | (3208) | (1848) | (3141) | (1464) | (54) | (9715) |
| Loans and advances to <br>banks at amortised cost<br>| 13034 | 7505 | 63524 | 15713 | 2276 | 102052 | (1) | (2) | (7) | (1) | (2) | (13) |
| Other financial assets <br>measured at amortised <br>cost<br>| 52869 | 100322 | 553664 | 58713 | 63012 | 828580 | (25) | (9) | (39) | (19) |  | (92) |
| – cash and balances at <br>central banks<br>| 5565 | 63981 | 177095 | 20260 | 773 | 267674 |  |  |  |  |  |  |
| – Hong Kong <br>Government certificates <br>of indebtedness<br>|  |  |  |  | 42293 | 42293 |  |  |  |  |  |  |
| – reverse repurchase <br>agreements – non-<br>trading<br>| 2896 | 13188 | 229672 | 5844 | 949 | 252549 |  |  |  |  |  |  |
| – financial investments | 40345 | 20072 | 56537 | 25059 | 11969 | 153982 | (1) | (1) | (4) | (3) |  | (9) |
| – assets held for sale<sup>2</sup> |  | 5 | 670 | 2595 | 3 | 3273 |  |  | (4) |  |  | (4) |
| – other assets<sup>3</sup> | 4063 | 3076 | 89690 | 4955 | 7025 | 108809 | (24) | (8) | (31) | (16) |  | (79) |
| Total on-balance sheet | 304319 | 376968 | 905030 | 212215 | 72473 | 1871005 | (3234) | (1859) | (3187) | (1484) | (56) | (9820) |
| Loan and other credit-<br>related commitments<br>| 109369 | 90848 | 307197 | 111762 | 191 | 619367 | (29) | (116) | (187) | (16) |  | (348) |
| Financial guarantees | 1171 | 939 | 13186 | 1702 |  | 16998 | (2) | (3) | (24) |  |  | (29) |
| Total off-balance sheet<sup>4</sup> | 110540 | 91787 | 320383 | 113464 | 191 | 636365 | (31) | (119) | (211) | (16) |  | (377) |
| At 31 Dec 2024 | 414859 | 468755 | 1225413 | 325679 | 72664 | 2507370 | (3265) | (1978) | (3398) | (1500) | (56) | (10197) |
|  | Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Memorandum allowance for ECL<sup>5</sup> | Memorandum allowance for ECL<sup>5</sup> | Memorandum allowance for ECL<sup>5</sup> | Memorandum allowance for ECL<sup>5</sup> | Memorandum allowance for ECL<sup>5</sup> | Memorandum allowance for ECL<sup>5</sup> |
|  | Hong <br>Kong<br>| UK | CIB | IWPB | Corporate<br>Centre<br>| Total | Hong <br>Kong<br>| UK | CIB | IWPB | Corporate<br>Centre<br>| Total |
|  | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| Debt instruments <br>measured at FVOCI <br>| 128568 | 26405 | 137538 | 51516 | 2097 | 346124 | (1) | (1) | (18) | (14) | (20) | (54) |

---

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.

2 At 30 June 2025, the gross carrying amount comprised$2.3bn of loans and advances to customers and banks (31 December 2024:$1.1bn) and $2.8bn of other

financial assets at amortised cost (31 December 2024:$2.1bn) including the planned sales of our private banking and custody businesses in Germany ($3.7bn,

31 December 2024: $2.2bn), as well as our business in South Africa ($0.8bn, 31 December 2024: $0.4bn). The corresponding allowance for ECL comprised

$11m of loans and advances to customers and banks (31 December 2024: $4m) and $0.2m of other financial assets at amortised cost (31 December 2024:

$0.3m).

3Includes only those financial instruments that are subject to the impairment requirements of IFRS 9. 'Other assets' as presented within the summary

consolidated balance sheet on page 23 comprises both financial and non-financial assets, including cash collateral and settlement accounts.

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Change in expected credit losses and other credit impairment charges by business segment | Change in expected credit losses and other credit impairment charges by business segment | Change in expected credit losses and other credit impairment charges by business segment | Change in expected credit losses and other credit impairment charges by business segment | Change in expected credit losses and other credit impairment charges by business segment | Change in expected credit losses and other credit impairment charges by business segment | Change in expected credit losses and other credit impairment charges by business segment |
|  | **Hong** <br>**Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** |
| **Half-year to** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| **30 Jun 2025** | **(864)** | **(323)** | **(299)** | **(453)** | **(2)** | **(1941)** |
| 31 Dec 2024 | (740) | (344) | (682) | (559) | (23) | (2348) |
| 30 Jun 2024 | (336) | (58) | (187) | (479) | (6) | (1066) |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **45** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

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.

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| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  | Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector  |
|  | **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 advances to customers at amortised cost | **852669** | **115338** | **23550** | **308** | **991865** | **(1181)** | **(2752)** | **(6144)** | **(66)** | **(10143)** | **0.1** | **2.4** | **26.1** | **21.4** | **1.0** |
| – personal | **421134** | **43900** | **3921** | **—** | **468955** | **(618)** | **(1228)** | **(894)** | **—** | **(2740)** | **0.1** | **2.8** | **22.8** | **—** | **0.6** |
| – corporate and commercial | **344579** | **68592** | **18982** | **115** | **432268** | **(502)** | **(1487)** | **(5084)** | **(66)** | **(7139)** | **0.1** | **2.2** | **26.8** | **57.4** | **1.7** |
| – non-bank financial institutions | **86956** | **2846** | **647** | **193** | **90642** | **(61)** | **(37)** | **(166)** | **—** | **(264)** | **0.1** | **1.3** | **25.7** | **—** | **0.3** |
| Loans and advances to banks at amortised cost | **107428** | **166** | **3** | **—** | **107597** | **(10)** | **(2)** | **(3)** | **—** | **(15)** | **—** | **1.2** | **100.0** | **—** | **—** |
| Other financial assets measured at amortised cost | **888423** | **2011** | **196** | **—** | **890630** | **(74)** | **(17)** | **(31)** | **—** | **(122)** | **—** | **0.8** | **15.8** | **—** | **—** |
| Loans and other credit-related commitments | **668179** | **22482** | **1040** | **4** | **691705** | **(143)** | **(119)** | **(89)** | **(1)** | **(352)** | **—** | **0.5** | **8.6** | **25.0** | **0.1** |
| – personal | **263998** | **1978** | **122** | **—** | **266098** | **(21)** | **(3)** | **(1)** | **—** | **(25)** | **—** | **0.2** | **0.8** | **—** | **—** |
| – corporate and commercial | **242163** | **19116** | **828** | **4** | **262111** | **(111)** | **(113)** | **(87)** | **(1)** | **(312)** | **—** | **0.6** | **10.5** | **25.0** | **0.1** |
| – financial | **162018** | **1388** | **90** | **—** | **163496** | **(11)** | **(3)** | **(1)** | **—** | **(15)** | **—** | **0.2** | **1.1** | **—** | **—** |
| Financial guarantees | **14506** | **1780** | **319** | **—** | **16605** | **(10)** | **(8)** | **(26)** | **—** | **(44)** | **0.1** | **0.4** | **8.2** | **—** | **0.3** |
| – personal | **1463** | **20** | **—** | **—** | **1483** | **(1)** | **—** | **—** | **—** | **(1)** | **0.1** | **—** | **—** | **—** | **0.1** |
| – corporate and commercial | **9128** | **1639** | **271** | **—** | **11038** | **(8)** | **(8)** | **(26)** | **—** | **(42)** | **0.1** | **0.5** | **9.6** | **—** | **0.4** |
| – financial | **3915** | **121** | **48** | **—** | **4084** | **(1)** | **—** | **—** | **—** | **(1)** | **—** | **—** | **—** | **—** | **—** |
| **At 30 Jun 2025**<sup>3</sup> | **2531205** | **141777** | **25108** | **312** | **2698402** | **(1418)** | **(2898)** | **(6293)** | **(67)** | **(10676)** | **0.1** | **2.0** | **25.1** | **21.5** | **0.4** |
| Loans and advances to customers at amortised cost | 824420 | 93248 | 22615 | 90 | 940373 | (1078) | (2546) | (6040) | (51) | (9715) | 0.1 | 2.7 | 26.7 | 56.7 | 1.0 |
| – personal | 403746 | 39919 | 3560 |  | 447225 | (570) | (1158) | (796) |  | (2524) | 0.1 | 2.9 | 22.4 |  | 0.6 |
| – corporate and commercial | 340987 | 51231 | 18376 | 90 | 410684 | (463) | (1358) | (4883) | (51) | (6755) | 0.1 | 2.7 | 26.6 | 56.7 | 1.6 |
| – non-bank financial institutions | 79687 | 2098 | 679 |  | 82464 | (45) | (30) | (361) |  | (436) | 0.1 | 1.4 | 53.2 |  | 0.5 |
| Loans and advances to banks at amortised cost | 101852 | 198 | 2 |  | 102052 | (9) | (2) | (2) |  | (13) |  | 1.0 | 100.0 |  |  |
| Other financial assets measured at amortised cost | 826621 | 1806 | 153 |  | 828580 | (64) | (5) | (23) |  | (92) |  | 0.3 | 15.0 |  |  |
| Loans and other credit-related commitments | 597231 | 21175 | 958 | 3 | 619367 | (137) | (121) | (90) |  | (348) |  | 0.6 | 9.4 |  | 0.1 |
| – personal | 251489 | 1680 | 86 |  | 253255 | (17) |  | (5) |  | (22) |  |  | 5.8 |  |  |
| – corporate and commercial | 231201 | 17453 | 838 | 3 | 249495 | (111) | (116) | (83) |  | (310) |  | 0.7 | 9.9 |  | 0.1 |
| – financial | 114541 | 2042 | 34 |  | 116617 | (9) | (5) | (2) |  | (16) |  | 0.2 | 5.9 |  |  |
| Financial guarantees | 15353 | 1397 | 248 |  | 16998 | (8) | (5) | (16) |  | (29) | 0.1 | 0.4 | 6.5 |  | 0.2 |
| – personal | 1416 | 11 |  |  | 1427 |  |  |  |  |  |  |  |  |  |  |
| – corporate and commercial | 10048 | 1232 | 195 |  | 11475 | (7) | (5) | (15) |  | (27) | 0.1 | 0.4 | 7.7 |  | 0.2 |
| – financial | 3889 | 154 | 53 |  | 4096 | (1) |  | (1) |  | (2) |  |  | 1.9 |  |  |
| At 31 Dec 2024 | 2365477 | 117824 | 23976 | 93 | 2507370 | (1296) | (2679) | (6171) | (51) | (10197) | 0.1 | 2.3 | 25.7 | 54.8 | 0.4 |

---

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

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

3The shift of 'gross carrying amount' between stage 1 and 2 arose mainly in Asia from higher average PD for the remaining term at the reporting date, reflecting updates to our PD models and ongoing market challenges. PDs at the reporting

date were compared with the PD calculated at origination.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **46** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

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  | Stage 2 days past due analysis  | Stage 2 days past due analysis  | Stage 2 days past due analysis  | Stage 2 days past due analysis  | Stage 2 days past due analysis  | Stage 2 days past due analysis  | Stage 2 days past due analysis  | Stage 2 days past due analysis  | Stage 2 days past due analysis  | Stage 2 days past due analysis  | Stage 2 days past due analysis  | Stage 2 days past due analysis  |
|  | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **ECL coverage %** | **ECL coverage %** | **ECL coverage %** | **ECL coverage %** |
|  | **Stage 2** | **Up-to-**<br>**date**<br>| **1 to 29**<br> **DPD**<sup>1</sup><br>| **30 and** <br>**> DPD**<sup>1</sup><br>| **Stage 2** | **Up-to-**<br>**date**<br>| **1 to 29**<br> **DPD**<sup>1</sup><br>| **30 and** <br>**> DPD**<sup>1</sup><br>| **Stage 2** | **Up-to-**<br>**date**<br>| **1 to 29**<br> **DPD**<br>| **30 and >**<br>**DPD**<br>|
| **At 30 Jun 2025** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **%** | **%** | **%** | **%** |
| Loans and advances to <br>customers at amortised cost<br>| **115338** | **112022** | **2027** | **1289** | **(2752)** | **(2305)** | **(254)** | **(193)** | **2.4** | **2.1** | **12.5** | **15.0** |
| – personal | **43900** | **41722** | **1346** | **832** | **(1228)** | **(825)** | **(234)** | **(169)** | **2.8** | **2.0** | **17.4** | **20.3** |
| – corporate and commercial | **68592** | **67572** | **681** | **339** | **(1487)** | **(1451)** | **(20)** | **(16)** | **2.2** | **2.1** | **2.9** | **4.7** |
| – non-bank financial <br>institutions<br>| **2846** | **2728** | **—** | **118** | **(37)** | **(29)** | **—** | **(8)** | **1.3** | **1.1** | **—** | **6.8** |
| Loans and advances to <br>banks at amortised cost<br>| **166** | **166** | **—** | **—** | **(2)** | **(2)** | **—** | **—** | **1.2** | **1.2** | **—** | **—** |
| Other financial assets <br>measured at amortised cost<br>| **2011** | **1999** | **5** | **7** | **(17)** | **(16)** | **—** | **(1)** | **0.8** | **0.8** | **—** | **14.3** |
| At 31 Dec 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
| Loans and advances to <br>customers at amortised cost<br>| 93248 | 90157 | 1888 | 1203 | (2546) | (2147) | (192) | (207) | 2.7 | 2.4 | 10.2 | 17.2 |
| – personal | 39919 | 37676 | 1361 | 882 | (1158) | (799) | (169) | (190) | 2.9 | 2.1 | 12.4 | 21.5 |
| – corporate and commercial | 51231 | 50486 | 506 | 239 | (1358) | (1326) | (21) | (11) | 2.7 | 2.6 | 4.2 | 4.6 |
| – non-bank financial <br>institutions<br>| 2098 | 1995 | 21 | 82 | (30) | (22) | (2) | (6) | 1.4 | 1.1 | 9.5 | 7.3 |
| Loans and advances to <br>banks at amortised cost<br>| 198 | 198 |  |  | (2) | (2) |  |  | 1.0 | 1.0 |  |  |
| Other financial assets <br>measured at amortised cost<br>| 1806 | 1794 | 3 | 9 | (5) | (5) |  |  | 0.3 | 0.3 |  |  |

---

1The days past due amounts are presented on a contractual basis.

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 359 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 359 of the Annual Report and Accounts 2024.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Loans and advances to customers and banks<sup>1</sup> | Loans and advances to customers and banks<sup>1</sup> | Loans and advances to customers and banks<sup>1</sup> | Loans and advances to customers and banks<sup>1</sup> | Loans and advances to customers and banks<sup>1</sup> | Loans and advances to customers and banks<sup>1</sup> |  |  |  |  |  |
|  | **At 30 Jun 2025** | **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 | At 31 Dec 2024 |
|  | **Loans and advances to customers** | **Loans and advances to customers** | **Loans and advances to customers** | **Loans and** <br>**advances** <br>**to banks at** <br>**amortised** <br>**cost** | **Total** <br>**stage 2** | Loans and advances to customers | Loans and advances to customers | Loans and advances to customers | Loans and <br>advances to <br>banks at <br>amortised <br>cost | Total<br> stage 2 |
|  | **Personal** | **Corporate** <br>**and** <br>**commercial** | **Non-bank** <br>**financial** <br>**institutions** | **Loans and** <br>**advances** <br>**to banks at** <br>**amortised** <br>**cost** | **Total** <br>**stage 2** | Personal | Corporate <br>and <br>commercial | Non-bank <br>financial <br>institutions | Loans and <br>advances to <br>banks at <br>amortised <br>cost | Total<br> stage 2 |
|  | **Personal** | **Corporate** <br>**and** <br>**commercial** | **Non-bank** <br>**financial** <br>**institutions** | **Loans and** <br>**advances** <br>**to banks at** <br>**amortised** <br>**cost** | **Total** <br>**stage 2** | Personal | Corporate <br>and <br>commercial | Non-bank <br>financial <br>institutions | Loans and <br>advances to <br>banks at <br>amortised <br>cost | Total<br> stage 2 |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | $m | $m | $m | $m | $m |
| Quantitative<sup>2</sup> | **40184** | **53156** | **1969** | **120** | **95429** | 36356 | 37787 | 1658 | 176 | 75977 |
| Qualitative | **3568** | **15309** | **874** | **46** | **19797** | 3452 | 13327 | 438 | 22 | 17239 |
| 30 DPD backstop<sup>3</sup> | **148** | **127** | **3** | **—** | **278** | 111 | 117 | 2 |  | 230 |
| **Total gross** <br>**carrying amount**<br>| **43900** | **68592** | **2846** | **166** | **115504** | 39919 | 51231 | 2098 | 198 | 93446 |
| Quantitative | **(1146)** | **(1166)** | **(31)** | **—** | **(2343)** | (1118) | (1124) | (28) |  | (2270) |
| Qualitative | **(69)** | **(317)** | **(6)** | **(2)** | **(394)** | (35) | (229) | (2) | (2) | (268) |
| 30 DPD backstop<sup>3</sup> | **(13)** | **(4)** | **—** | **—** | **(17)** | (5) | (5) |  |  | (10) |
| **Total allowance** <br>**for ECL**<br>| **(1228)** | **(1487)** | **(37)** | **(2)** | **(2754)** | (1158) | (1358) | (30) | (2) | (2548) |
| **ECL coverage %** | **2.8** | **2.2** | **1.3** | **1.2** | **2.4** | 2.9 | 2.7 | 1.4 | 1.0 | 2.7 |

---

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.

2The shift of 'gross carrying amount' between stage 1 and 2 arose mainly in Asia from higher average PD for the remaining term at the reporting date, reflecting

updates to our PD models and ongoing market challenges. PDs at the reporting date were compared with the PD calculated at origination.

3Days past due ('DPD').

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **47** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | 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 second quarter of 2025

and scenario weights were adjusted. Weight was reassigned from

the Central scenario to the consensus Downside scenario.

In the second quarter of 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, although that

narrative is disrupted in the US and Mexico by the assumption of

higher tariff rates and a broad increase in import prices. Mexico is

affected in a similar way to the US on the supply side, given the

significance of its trade with the US and the assumption that

countries react to US tariffs with countermeasures. 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 with 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.

The notable exceptions are mainland China and Hong Kong, where

forecasts have improved. Recent data in these markets has

suggested that while tariffs and subdued consumer confidence will

continue to be headwinds in the months ahead, official support for

the respective economies is expected to ensure that the downturn is

less pronounced than previously expected, amid strong fiscal support

and increasingly supportive monetary conditions.

In the US and 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. The exception is the UAE.

–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

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

2026. In the US, the impact of tariffs on import prices is expected to

keep prices higher, whereas in the UK changes to utility prices and

employer taxes and wage costs are seen as the main driver of

higher inflation. In Hong Kong and mainland China, price inflation is

likely to remain subdued amid weak domestic demand and

continued strong manufacturing growth in mainland China.

–Housing market conditions also remain mixed, with prices forecast

to continue to fall in Hong Kong and mainland China in the near term

due to an excess of unsold inventory. Stronger growth is expected in

the UAE and Mexico, but price gains are expected to remain more

muted in the UK, US and France.

–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 Holdings plc Interim Report 2025 on Form 6-K |
| **48** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

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

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Consensus Central scenario  | Consensus Central scenario  | Consensus Central scenario  | Consensus Central scenario  | Consensus Central scenario  | Consensus Central scenario  | Consensus Central scenario  | Consensus Central scenario  |  |  |  |  |  |  |  |
|  | **3Q25-2Q30 (as at 2Q25)** | **3Q25-2Q30 (as at 2Q25)** | **3Q25-2Q30 (as at 2Q25)** | **3Q25-2Q30 (as at 2Q25)** | **3Q25-2Q30 (as at 2Q25)** | **3Q25-2Q30 (as at 2Q25)** | **3Q25-2Q30 (as at 2Q25)** | 2025–2029 (as at 4Q24) | 2025–2029 (as at 4Q24) | 2025–2029 (as at 4Q24) | 2025–2029 (as at 4Q24) | 2025–2029 (as at 4Q24) | 2025–2029 (as at 4Q24) | 2025–2029 (as at 4Q24) |
|  | **UK** | **US** | **Hong** <br>**Kong**<br>| **Mainland** <br>**China**<br>| **France** | **UAE** | **Mexico** | UK | US | Hong <br>Kong<br>| Mainland <br>China<br>| France | UAE | Mexico |
| **GDP (annual average growth rate, %)** | **GDP (annual average growth rate, %)** | **GDP (annual average growth rate, %)** |  |  |  |  |  |  |  |  |  |  |  |  |
| 2025 | **0.9** | **1.5** | **1.8** | **4.3** | **0.5** | **4.2** | **0.2** | 1.2 | 2.0 | 1.7 | 4.0 | 0.9 | 4.4 | 0.9 |
| 2026 | **1.2** | **1.6** | **2.1** | **4.1** | **1.0** | **4.2** | **1.4** | 1.3 | 1.6 | 1.8 | 3.7 | 0.9 | 4.2 | 1.2 |
| 2027 | **1.5** | **2.0** | **2.4** | **4.0** | **1.3** | **4.0** | **2.0** | 1.8 | 1.6 | 3.5 | 4.3 | 1.4 | 3.9 | 1.7 |
| 2028 | **1.5** | **2.0** | **2.4** | **3.9** | **1.3** | **3.5** | **2.0** | 1.6 | 1.8 | 3.1 | 3.9 | 1.5 | 3.6 | 1.9 |
| 2029 | **1.5** | **1.9** | **2.4** | **3.8** | **1.2** | **3.4** | **2.0** | 1.6 | 2.0 | 2.7 | 3.7 | 1.4 | 3.6 | 2.0 |
| 5-year average<sup>1</sup> | **1.4** | **1.8** | **2.2** | **3.9** | **1.1** | **3.7** | **1.7** | 1.5 | 1.8 | 2.6 | 3.9 | 1.2 | 3.9 | 1.5 |
| **Unemployment rate (%)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 2025 | **4.6** | **4.4** | **3.2** | **5.2** | **7.6** | **2.6** | **3.1** | 4.9 | 4.4 | 3.3 | 5.2 | 7.5 | 2.7 | 3.5 |
| 2026 | **4.7** | **4.5** | **3.1** | **5.1** | **7.7** | **2.5** | **3.8** | 4.7 | 4.3 | 3.7 | 5.4 | 7.3 | 2.6 | 3.5 |
| 2027 | **4.5** | **4.3** | **3.1** | **5.1** | **7.5** | **2.5** | **3.4** | 4.5 | 4.3 | 3.3 | 5.2 | 7.2 | 2.6 | 3.5 |
| 2028 | **4.3** | **4.3** | **3.0** | **5.0** | **7.4** | **2.4** | **3.5** | 4.3 | 4.2 | 3.0 | 5.0 | 7.0 | 2.5 | 3.5 |
| 2029 | **4.1** | **4.1** | **3.0** | **5.0** | **7.2** | **2.4** | **3.4** | 4.3 | 4.1 | 2.9 | 5.0 | 7.0 | 2.5 | 3.5 |
| 5-year average<sup>1</sup> | **4.4** | **4.3** | **3.1** | **5.1** | **7.5** | **2.4** | **3.5** | 4.5 | 4.2 | 3.2 | 5.2 | 7.2 | 2.6 | 3.5 |
| **House prices (annual average growth rate, %)** | **House prices (annual average growth rate, %)** | **House prices (annual average growth rate, %)** |  |  |  |  |  |  |  |  |  |  |  |  |
| 2025 | **3.5** | **3.7** | **(5.3)** | **(5.9)** | **2.1** | **13.5** | **7.1** | 1.4 | 4.4 | (0.5) | (5.9) | 2.1 | 9.3 | 7.6 |
| 2026 | **1.2** | **3.1** | **(1.2)** | **(1.5)** | **4.3** | **5.5** | **4.2** | 3.8 | 3.2 | 2.4 | (0.7) | 4.4 | 5.1 | 4.5 |
| 2027 | **2.4** | **3.0** | **4.2** | **0.6** | **4.9** | **3.6** | **4.3** | 4.6 | 2.4 | 3.0 | 3.2 | 4.4 | 3.6 | 4.2 |
| 2028 | **3.3** | **2.6** | **3.0** | **2.7** | **4.1** | **2.3** | **4.4** | 3.5 | 2.5 | 2.7 | 4.1 | 3.8 | 1.8 | 4.0 |
| 2029 | **2.7** | **2.4** | **2.6** | **2.9** | **3.3** | **1.8** | **4.1** | 2.7 | 2.6 | 2.7 | 2.9 | 3.1 | 1.3 | 4.0 |
| 5-year average<sup>1</sup> | **2.4** | **2.8** | **1.6** | **0.7** | **3.9** | **3.9** | **4.4** | 3.2 | 3.0 | 2.1 | 0.7 | 3.6 | 4.2 | 4.9 |
| **Inflation (annual average growth rate, %)** | **Inflation (annual average growth rate, %)** | **Inflation (annual average growth rate, %)** |  |  |  |  |  |  |  |  |  |  |  |  |
| 2025 | **3.0** | **3.1** | **1.7** | **0.3** | **1.3** | **1.9** | **3.7** | 2.4 | 2.4 | 1.4 | 0.3 | 1.2 | 2.1 | 5.0 |
| 2026 | **2.3** | **2.8** | **1.8** | **0.9** | **1.6** | **2.0** | **3.6** | 2.1 | 2.8 | 1.9 | 1.0 | 1.6 | 1.9 | 3.9 |
| 2027 | **2.0** | **2.4** | **2.0** | **1.4** | **1.9** | **1.9** | **3.5** | 2.1 | 2.5 | 2.2 | 1.5 | 2.0 | 1.8 | 3.4 |
| 2028 | **2.1** | **2.3** | **2.0** | **1.6** | **2.3** | **1.9** | **3.5** | 2.0 | 2.2 | 2.2 | 1.7 | 2.3 | 1.9 | 3.4 |
| 2029 | **2.0** | **2.2** | **2.1** | **1.5** | **2.2** | **1.9** | **3.4** | 2.0 | 2.1 | 2.3 | 1.6 | 2.2 | 1.8 | 3.4 |
| 5-year average<sup>1</sup> | **2.2** | **2.5** | **1.9** | **1.3** | **1.9** | **1.9** | **3.5** | 2.1 | 2.4 | 2.0 | 1.2 | 1.9 | 1.9 | 3.8 |
| **Central bank policy rate (annual average, %)**<sup>2</sup> | **Central bank policy rate (annual average, %)**<sup>2</sup> | **Central bank policy rate (annual average, %)**<sup>2</sup> |  |  |  |  |  |  |  |  |  |  |  |  |
| 2025 | **4.2** | **4.2** | **4.6** | **3.0** | **2.1** | **4.3** | **8.5** | 4.2 | 4.1 | 4.5 | 2.9 | 2.1 | 4.1 | 9.4 |
| 2026 | **3.7** | **3.5** | **3.9** | **2.8** | **1.6** | **3.5** | **7.4** | 3.9 | 3.7 | 4.1 | 2.9 | 1.8 | 3.8 | 8.8 |
| 2027 | **3.7** | **3.4** | **3.8** | **2.9** | **1.9** | **3.4** | **7.6** | 3.8 | 3.7 | 4.0 | 3.0 | 2.0 | 3.7 | 8.8 |
| 2028 | **3.8** | **3.5** | **3.9** | **2.9** | **2.2** | **3.6** | **7.9** | 3.7 | 3.6 | 4.0 | 3.2 | 2.0 | 3.6 | 8.9 |
| 2029 | **3.9** | **3.7** | **4.1** | **3.0** | **2.4** | **3.7** | **8.2** | 3.7 | 3.6 | 4.0 | 3.3 | 2.1 | 3.6 | 8.9 |
| 5-year average<sup>1</sup> | **3.8** | **3.6** | **4.0** | **2.9** | **2.1** | **3.7** | **7.8** | 3.9 | 3.7 | 4.1 | 3.1 | 2.0 | 3.8 | 8.9 |

---

1Thefive-year average is calculated over the 20 quarter projection. For the 2Q25 scenario this is from 3Q25 to 2Q30. For the 4Q24 scenario it is from 1Q25 to 4Q29.

2For mainland China, rate shown is the Loan Prime Rate.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **49** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

The graphs compare the respective Central scenario with current economic expectations beginning in the second quarter of 2025.

**GDP growth: Comparison of Central scenarios**

Hong Kong<br>

**4Q24 Central 5Y Average: 2.6%**

**2Q25 Central 5Y Average: 2.2%**

![7696581394610](hsbc-20250630_g6.gif)

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

UK<br>

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

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

![7696581394670](hsbc-20250630_g7.gif)

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

Mainland China<br>

![7696581394729](hsbc-20250630_g8.gif)

**4Q24 Central 5Y Average: 3.9%**

**2Q25 Central 5Y Average: 3.9%**

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

US<br>

![7696581394789](hsbc-20250630_g9.gif)

**4Q24 Central 5Y Average: 1.8%**

**2Q25 Central 5Y Average: 1.8%**

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.

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| 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) | 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) | 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** | **US** | **US** | **Hong** <br>**Kong** | **Hong** <br>**Kong** | **Mainland** <br>**China** | **Mainland** <br>**China** | **France** | **France** | **UAE** | **UAE** | **Mexico** | **Mexico** |
| GDP level (%, start-to-peak)<sup>1</sup> | **11.0** | **(2Q30)** | **14.9** | **(2Q30)** | **19.1** | **(2Q30)** | **28.5** | **(2Q30)** | **8.4** | **(2Q30)** | **28.9** | **(2Q30)** | **16.4** | **(2Q30)** |
| Unemployment rate (%, min)<sup>2</sup> | **3.0** | **(1Q27)** | **3.6** | **(2Q27)** | **2.7** | **(2Q27)** | **4.6** | **(2Q27)** | **6.6** | **(2Q27)** | **2.0** | **(2Q27)** | **3.0** | **(3Q25)** |
| House price index (%, start-to-peak)<sup>1</sup> | **18.2** | **(2Q30)** | **24.7** | **(2Q30)** | **19.8** | **(2Q30)** | **9.4** | **(2Q30)** | **23.3** | **(2Q30)** | **24.2** | **(2Q30)** | **29.0** | **(2Q30)** |
| Inflation rate (YoY % change, max)<sup>3</sup> | **3.3** | **(4Q25)** | **3.6** | **(4Q25)** | **2.5** | **(4Q26)** | **2.2** | **(1Q26)** | **2.3** | **(4Q27)** | **2.5** | **(4Q25)** | **4.2** | **(1Q26)** |
| Central bank policy rate (%, max)<sup>3</sup> | **4.3** | **(3Q25)** | **4.4** | **(3Q25)** | **4.7** | **(3Q25)** | **3.3** | **(1Q26)** | **2.5** | **(2Q30)** | **4.4** | **(3Q25)** | **8.5** | **(2Q30)** |

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| 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) | 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) | 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 | US | US | Hong <br>Kong | Hong <br>Kong | Mainland <br>China | Mainland <br>China | France | France | UAE | UAE | Mexico | Mexico |
| GDP level (%, start-to-peak)<sup>1</sup> | 11.3 | (4Q29) | 13.6 | (4Q29) | 21.4 | (4Q29) | 27.5 | (4Q29) | 8.9 | (4Q29) | 28.9 | (4Q29) | 13.6 | (4Q29) |
| Unemployment rate (%, min)<sup>2</sup> | 3.5 | (3Q26) | 3.6 | (1Q26) | 2.9 | (4Q29) | 4.9 | (4Q26) | 6.4 | (4Q26) | 2.2 | (4Q26) | 3.0 | (1Q25) |
| House price index (%, start-to-peak)<sup>1</sup> | 24.2 | (4Q29) | 23.6 | (4Q29) | 25.3 | (4Q29) | 9.8 | (4Q29) | 22.8 | (4Q29) | 26.1 | (4Q29) | 31.7 | (4Q29) |
| Inflation rate (YoY % change, min)<sup>3</sup> | 1.4 | (1Q26) | 1.6 | (2Q26) | (0.1) | (4Q25) | (1.0) | (4Q25) | 0.1 | (4Q25) | 0.6 | (4Q25) | 3.1 | (2Q26) |
| Central bank policy rate (%, min)<sup>3</sup> | 3.6 | (4Q25) | 3.6 | (1Q29) | 4.0 | (1Q29) | 2.7 | (1Q26) | 1.4 | (3Q25) | 3.6 | (1Q29) | 7.6 | (1Q26) |

---

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. For mainland China, the policy rate shown is the Loan Prime

rate.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **50** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

**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.

For most markets, inflation and interest rates are lower in the

downside scenarios compared with the Central scenario. The notable

exceptions are the US and Mexico, where tariffs and

countermeasures are assumed to cause a temporary increase in

inflation above the Central scenario. Interest rates are also assumed

to rise to a higher level, before the effects of weaker consumption

demand begin to dominate.

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;

–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, and remaining at that level in 2026.

In the 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. In the US and Mexico inflation is assumed to

increase as higher tariffs across a broad range of imported goods pass

through to prices. Rising unemployment and falling commodity prices

are also calibrated so that they weigh on activity.

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

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| 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) | 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) | 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** | **US** | **US** | **Hong Kong** | **Hong Kong** | **Mainland China** | **Mainland China** | **France** | **France** | **UAE** | **UAE** | **Mexico** | **Mexico** |
| GDP level (%, start-to-trough)<sup>1</sup> | **(0.9)** | **(3Q27)** | **(1.5)** | **(2Q26)** | **(4.2)** | **(1Q26)** | **(2.9)** | **(4Q25)** | **(0.6)** | **(1Q26)** | **(0.2)** | **(3Q25)** | **(1.4)** | **(4Q26)** |
| Unemployment rate (%, max)<sup>2</sup> | **6.2** | **(3Q26)** | **5.6** | **(1Q26)** | **4.5** | **(1Q27)** | **6.7** | **(2Q27)** | **8.8** | **(1Q26)** | **3.4** | **(2Q26)** | **4.2** | **(3Q26)** |
| House price index (%, start-to-trough)<sup>1</sup> | **(6.4)** | **(4Q26)** | **(0.7)** | **(2Q26)** | **(6.9)** | **(1Q26)** | **(10.0)** | **(1Q27)** | **0.2** | **(3Q25)** | **(1.0)** | **(3Q25)** | **0.7** | **(3Q25)** |
| Inflation rate (YoY % change)<sup>3</sup> | **1.3** | **(2Q26)** | **4.0** | **(4Q25)** | **0.9** | **(2Q26)** | **(2.8)** | **(2Q26)** | **0.6** | **(2Q26)** | **0.8** | **(2Q26)** | **4.3** | **(4Q25)** |
| Central bank policy rate (%)<sup>3</sup> | **2.4** | **(1Q28)** | **5.2** | **(4Q25)** | **5.6** | **(4Q25)** | **1.7** | **(1Q26)** | **0.4** | **(1Q26)** | **5.2** | **(4Q25)** | **10.2** | **(4Q25)** |

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| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| 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) | 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) | 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 | US | US | Hong Kong | Hong Kong | Mainland China | Mainland China | France | France | UAE | UAE | Mexico | Mexico |
| GDP level (%, start-to-trough)<sup>1</sup> | (1.0) | (4Q26) | (0.6) | (3Q25) | (4.5) | (4Q25) | (2.5) | (3Q25) | (0.6) | (1Q26) | 0.3 | (1Q25) | (2.1) | (4Q26) |
| Unemployment rate (%, max)<sup>2</sup> | 6.1 | (4Q25) | 5.3 | (3Q25) | 5.1 | (2Q26) | 6.9 | (4Q26) | 8.3 | (3Q25) | 3.4 | (1Q26) | 4.1 | (4Q25) |
| House price index (%, start-to-trough)<sup>1</sup> | (4.5) | (1Q26) | (0.2) | (1Q25) | (1.9) | (2Q26) | (12.8) | (3Q26) | (0.3) | (1Q25) | (0.4) | (1Q25) | 2.1 | (1Q25) |
| Inflation rate (YoY % change, max)<sup>3</sup> | 3.4 | (4Q25) | 4.5 | (1Q26) | 3.1 | (1Q26) | 2.0 | (1Q26) | 2.6 | (3Q25) | 2.8 | (1Q26) | 7.4 | (4Q25) |
| Central bank policy rate (%, max)<sup>3</sup> | 5.0 | (1Q25) | 4.8 | (1Q25) | 5.2 | (1Q25) | 3.0 | (1Q25) | 3.2 | (1Q25) | 4.8 | (1Q25) | 11.5 | (3Q25) |

---

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 2Q, the table shows highest year-on-year percentage change in inflation and projected policy rates for the

US and Mexico, and lowest for other countries. For the UAE and Hong Kong, the policy rate is also shown as the maximum, consistent with the operation of US

dollar-linked exchange rates. For mainland China, the policy rate shown is the Loan Prime rate.

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, and 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) | 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) | 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** | **US** | **US** | **Hong Kong** | **Hong Kong** | **Mainland China** | **Mainland China** | **France** | **France** | **UAE** | **UAE** | **Mexico** | **Mexico** |
| GDP level (%, start-to-trough)<sup>1</sup> | **(5.5)** | **(4Q26)** | **(4.2)** | **(3Q26)** | **(10.8)** | **(1Q27)** | **(6.3)** | **(3Q26)** | **(6.3)** | **(4Q26)** | **(5.2)** | **(4Q26)** | **(9.3)** | **(4Q26)** |
| Unemployment rate (%, max)<sup>2</sup> | **8.7** | **(4Q26)** | **8.7** | **(4Q26)** | **6.7** | **(2Q26)** | **6.9** | **(2Q27)** | **10.8** | **(2Q27)** | **4.0** | **(1Q26)** | **5.8** | **(4Q26)** |
| House price index (%, start-to-trough)<sup>1</sup> | **(26.8)** | **(2Q27)** | **(14.3)** | **(2Q26)** | **(22.1)** | **(2Q29)** | **(27.7)** | **(3Q27)** | **(6.8)** | **(4Q26)** | **(24.4)** | **(3Q27)** | **0.7** | **(3Q25)** |
| Inflation rate (YoY % change)<sup>3</sup> | **(1.9)** | **(2Q26)** | **4.3** | **(4Q25)** | **(1.4)** | **(4Q26)** | **(6.0)** | **(2Q26)** | **(0.4)** | **(3Q26)** | **0.7** | **(2Q26)** | **4.4** | **(4Q25)** |
| Central bank policy rate (%)<sup>3</sup> | **1.6** | **(3Q26)** | **5.3** | **(4Q25)** | **5.6** | **(4Q25)** | **1.4** | **(4Q26)** | **(0.1)** | **(2Q26)** | **5.3** | **(4Q25)** | **10.6** | **(4Q25)** |

---

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| 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) | 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) | 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 | US | US | Hong Kong | Hong Kong | Mainland China | Mainland China | France | France | UAE | UAE | Mexico | Mexico |
| GDP level (%, start-to-trough)<sup>1</sup> | (9.1) | (2Q26) | (4.1) | (2Q26) | (10.1) | (4Q25) | (8.7) | (4Q25) | (7.9) | (2Q26) | (6.8) | (2Q26) | (10.5) | (3Q26) |
| Unemployment rate (%, max)<sup>2</sup> | 8.4 | (2Q26) | 9.3 | (2Q26) | 7.1 | (1Q26) | 7.1 | (4Q26) | 10.4 | (1Q27) | 5.0 | (3Q25) | 5.6 | (1Q26) |
| House price index (%, start-to-trough)<sup>1</sup> | (27.2) | (4Q26) | (15.8) | (4Q25) | (34.4) | (3Q27) | (30.5) | (4Q26) | (14.0) | (2Q27) | (13.2) | (2Q27) | 2.0 | (1Q25) |
| Inflation rate (YoY % change, max)<sup>3</sup> | 10.1 | (2Q25) | 4.9 | (4Q25) | 3.6 | (1Q26) | 3.8 | (4Q25) | 7.6 | (2Q25) | 3.7 | (2Q25) | 7.9 | (4Q25) |
| Central bank policy rate (%, max)<sup>3</sup> | 5.5 | (1Q25) | 5.5 | (1Q25) | 5.9 | (1Q25) | 3.5 | (3Q25) | 4.2 | (1Q25) | 5.6 | (1Q25) | 12.1 | (3Q25) |

---

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 2Q, the table shows highest year-on-year percentage change in inflation and projected policy rates for the

US and Mexico, but lowest for other countries. For the UAE and Hong Kong, the policy rate is also shown as the maximum, consistent with the operation of US

dollar-linked exchange rates. For mainland China, the policy rate shown is the Loan Prime rate.

---

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|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **51** |

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| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

**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 second quarter of 2025, key considerations around uncertainty

attached to the Central scenario projections focused on:

–US import tariffs and bilateral tariff escalation 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 US,

UK, Hong Kong and mainland China;

–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 second quarter of 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, % | Scenario weightings, % | Scenario weightings, % | Scenario weightings, % | Scenario weightings, % | Scenario weightings, % |
|  | **Standard weights** | **UK** | **US** | **Hong Kong** | **Mainland China** | **France** | **UAE** | **Mexico** |
| **2Q25** |  |  |  |  |  |  |  |  |
| Upside | **10** | **10** | **10** | **10** | **10** | **10** | **10** | **10** |
| Central | **75** | **65** | **65** | **65** | **65** | **65** | **65** | **65** |
| Downside  | **10** | **20** | **20** | **20** | **20** | **20** | **20** | **20** |
| Downside 2 | **5** | **5** | **5** | **5** | **5** | **5** | **5** | **5** |
| 4Q24 |  |  |  |  |  |  |  |  |
| Upside | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Central | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 75 |
| Downside | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Downside 2 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 |

---

The following graphs show the historical and forecasted GDP growth rate for the various economic scenarios in our four largest markets.

Hong Kong<br>

![144585779052831](hsbc-20250630_g10.gif)

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

UK<br>

![144585779052838](hsbc-20250630_g11.gif)

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

Mainland China<br>

![144585779052835](hsbc-20250630_g12.gif)

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

US<br>

![144585779052841](hsbc-20250630_g13.gif)

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

---

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|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **52** |

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| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

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 155 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 155 of the Annual Report and Accounts 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Management judgemental adjustments to ECL<sup>1</sup> | Management judgemental adjustments to ECL<sup>1</sup> | Management judgemental adjustments to ECL<sup>1</sup> | Management judgemental adjustments to ECL<sup>1</sup> | Management judgemental adjustments to ECL<sup>1</sup> | Management judgemental adjustments to ECL<sup>1</sup> | Management judgemental adjustments to ECL<sup>1</sup> |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Retail** | **Wholesale**<sup>2</sup> | **Total** | Retail | Wholesale<sup>2</sup> | Total |
|  | **$bn** | **$bn** | **$bn** | $bn | $bn | $bn |
| **Modelled ECL (A)**<sup>3</sup> | **2.7** | **1.9** | **4.6** | 2.6 | 2.0 | 4.6 |
| Banks, sovereigns, government entities and low-risk counterparties |  | **0.0** | **0.0** |  | 0.0 | 0.0 |
| Corporate lending adjustments |  | **0.2** | **0.2** |  | 0.1 | 0.1 |
| Other credit judgements | **0.1** | **—** | **0.1** | 0.0 |  | 0.0 |
| **Total management judgemental adjustments (B)**<sup>4</sup> | **0.1** | **0.2** | **0.3** | 0.0 | 0.1 | 0.1 |
| **Other adjustments (C)**<sup>5</sup> | **0.1** | **0.3** | **0.4** | (0.0) | 0.1 | 0.1 |
| **Final ECL (A + B + C)**<sup>6</sup> | **2.8** | **2.4** | **5.2** | 2.6 | 2.2 | 4.8 |

---

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 losses 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, 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. At

30 June 2025 a qualitative industry sector framework adjustment increased the Wholesale portfolio allowance for ECL by $0.1bn.

6As presented within our internal credit risk governance (see page 139 of the Annual Report and Accounts 2024).

In the wholesale portfolio, management judgemental adjustments

were an increase to modelled allowance for ECL of $0.2bn

(31 December 2024: $0.1bn increase), mostly to reflect heightened

uncertainty in specific sectors and geographies, including real estate

sector adjustments as a result of ongoing market challenges.

Compared with 31 December 2024, management judgemental

adjustments increased by $0.1bn at 30 June 2025.

In the retail portfolio, management judgemental adjustments were an

increase to modelled allowance for ECL of $0.1bn at 30 June 2025

(31 December 2024: $0.0bn).Management judgemental adjustments

in relation to other credit judgements increased allowance for ECL by

$0.1bn (31 December 2024: $0.0bn). Adjustments relate to market-

specific uncertainties across a number of geographies.

Economic scenarios sensitivity analysis of

ECL estimates

The economic scenarios sensitivity analysis of ECL estimates is

detailed on page 156 of the Annual Report and Accounts 2024.

Wholesale and retail sensitivity

The wholesale and retail sensitivity tables present the 100%-

weighted results for each of the four scenarios. 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.

---

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|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **53** |

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| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

Wholesale analysis

At 30 June 2025, the highest level of 100% scenario-weighted ECL

was observed in the UK and Hong Kong. This higher ECL impact was

largely driven by significant exposure in these regions. In the

wholesale portfolio, off-balance sheet financial instruments have a

lower likelihood to be fully converted to a funded exposure at the

point of default, and consequently the ECL sensitivity impact is lower

in relation to its nominal amount when compared with an on-balance

sheet exposure with similar risk profile.

Compared with 31 December 2024, the Downside 2 ECL impact

decreased by $1.4bn, 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.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Wholesale IFRS 9 ECL sensitivity to future economic conditions<sup>1,2,3</sup> | Wholesale IFRS 9 ECL sensitivity to future economic conditions<sup>1,2,3</sup> | Wholesale IFRS 9 ECL sensitivity to future economic conditions<sup>1,2,3</sup> | Wholesale IFRS 9 ECL sensitivity to future economic conditions<sup>1,2,3</sup> | Wholesale IFRS 9 ECL sensitivity to future economic conditions<sup>1,2,3</sup> | Wholesale IFRS 9 ECL sensitivity to future economic conditions<sup>1,2,3</sup> | Wholesale IFRS 9 ECL sensitivity to future economic conditions<sup>1,2,3</sup> |
| **By geography at** <br>**30 Jun 2025**<sup>5</sup> | **Reported** <br>**Gross carrying** <br>**amount**<sup>4</sup><br>| **Reported** <br>**allowance** <br>**for ECL**<br>| **Consensus Central** <br>**scenario allowance** <br>**for ECL**<br>| **Consensus Upside** <br>**scenario allowance** <br>**for ECL**<br>| **Consensus Downside** <br>**scenario allowance** <br>**for ECL**<br>| **Downside 2** <br>**scenario allowance** <br>**for ECL**<br>|
| **By geography at** <br>**30 Jun 2025**<sup>5</sup> | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| UK | **439863** | **618** | **579** | **521** | **732** | **1082** |
| US | **199656** | **215** | **191** | **169** | **298** | **515** |
| Hong Kong | **467487** | **814** | **758** | **607** | **966** | **1524** |
| Mainland China | **134762** | **236** | **190** | **121** | **387** | **681** |
| Mexico | **35806** | **91** | **82** | **65** | **110** | **273** |
| UAE | **60542** | **59** | **57** | **49** | **65** | **101** |
| France | **191111** | **128** | **118** | **102** | **143** | **190** |
| Other geographies<sup>6</sup> | **478479** | **262** | **227** | **172** | **390** | **767** |
| **Total** | **2007707** | **2423** | **2202** | **1808** | **3091** | **5133** |
| of which: |  |  |  |  |  |  |
| Stage 1 | **1838904** | **707** | **665** | **536** | **837** | **915** |
| Stage 2 | **168803** | **1685** | **1537** | **1272** | **2254** | **4218** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| By geography at <br>31 Dec 2024<sup>5</sup><br>|  |  |  |  |  |  |
| UK | 432160 | 717 | 667 | 526 | 850 | 2389 |
| US | 202888 | 216 | 201 | 205 | 247 | 461 |
| Hong Kong | 450966 | 659 | 616 | 465 | 906 | 1496 |
| Mainland China | 137960 | 178 | 141 | 84 | 329 | 886 |
| Mexico | 34713 | 69 | 61 | 46 | 86 | 302 |
| UAE | 58909 | 51 | 49 | 40 | 58 | 120 |
| France | 184591 | 82 | 80 | 69 | 97 | 125 |
| Other geographies<sup>6</sup> | 455823 | 234 | 216 | 176 | 304 | 774 |
| Total | 1958010 | 2205 | 2031 | 1612 | 2877 | 6555 |
| of which: |  |  |  |  |  |  |
| Stage 1 | 1830264 | 689 | 632 | 494 | 797 | 803 |
| Stage 2 | 127746 | 1516 | 1399 | 1118 | 2080 | 5751 |

---

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. For a detailed breakdown of performing and non-performing wholesale portfolio exposures, see page <u>[60](#i3aacb9d6d5d149b59e70a508ca79dc34_337)</u>.

4Staging refers only to probability-weighted/reported gross carrying amount. Stage allocation of gross exposures varies by scenario, with higher allocation to

stage 2 under the Downside 2 scenario.

5Geographies include all legal entities which share a common set of macroeconomic scenarios for the majority of exposures.

6Includes small portfolios that use less complex modelling approaches and are not sensitive to macroeconomic changes.

Retail analysis

At 30 June 2025, the most significant level of allowance for ECL

sensitivity was observed in the UK, Mexico and Hong Kong.

Mortgages reflected the lowest level of allowance for ECL sensitivity

across most markets given the significant levels of collateral relative

to the exposure values. Credit cards and other unsecured lending

across stages 1 and 2 are more sensitive to economic forecasts and

therefore reflected the highest level of allowance for ECL sensitivity

during the first half of 2025.

Compared with 31 December 2024, the Downside 2 ECL decreased

by $0.4bn, primarily in Hong Kong credit cards and other unsecured

lending due to the reducing severity of house price forecasts.

---

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|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **54** |

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| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

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---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Retail IFRS 9 ECL sensitivity to future economic conditions<sup>1</sup> | Retail IFRS 9 ECL sensitivity to future economic conditions<sup>1</sup> | Retail IFRS 9 ECL sensitivity to future economic conditions<sup>1</sup> | Retail IFRS 9 ECL sensitivity to future economic conditions<sup>1</sup> | Retail IFRS 9 ECL sensitivity to future economic conditions<sup>1</sup> | Retail IFRS 9 ECL sensitivity to future economic conditions<sup>1</sup> | Retail IFRS 9 ECL sensitivity to future economic conditions<sup>1</sup> |  |  |  |  |  |  |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | **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 | At 31 Dec 2024 | At 31 Dec 2024 |
| **By geography** | **Reported gross** <br>**carrying** <br>**amount**<br>| **Reported** <br>**allowance** <br>**for ECL**<br>| **Consensus** <br>**Central** <br>**scenario** <br>**allowance for** <br>**ECL**<br>| **Consensus** <br>**Upside** <br>**scenario** <br>**allowance for** <br>**ECL**<br>| **Consensus** <br>**Downside** <br>**scenario** <br>**allowance** <br>**for ECL**<br>| **Downside 2** <br>**scenario** <br>**allowance for** <br>**ECL**<br>| Reported gross <br>carrying <br>amount<br>| Reported <br>allowance <br>for ECL<br>| Consensus <br>Central <br>scenario <br>allowance for <br>ECL<br>| Consensus <br>Upside <br>scenario <br>allowance for <br>ECL<br>| Consensus <br>Downside <br>scenario <br>allowance <br>for ECL<br>| Downside 2 <br>scenario <br>allowance for <br>ECL<br>|
| **By geography** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | $m | $m | $m | $m | $m | $m |
| **UK** |  |  |  |  |  |  |  |  |  |  |  |  |
| Mortgages | **181192** | **150** | **138** | **130** | **158** | **293** | 163541 | 126 | 117 | 107 | 132 | 288 |
| Credit cards | **7990** | **339** | **336** | **317** | **338** | **414** | 7415 | 280 | 275 | 265 | 276 | 447 |
| Other | **9404** | **267** | **263** | **238** | **275** | **346** | 8249 | 241 | 233 | 217 | 243 | 351 |
| **Mexico** |  |  |  |  |  |  |  |  |  |  |  |  |
| Mortgages | **8187** | **187** | **183** | **175** | **190** | **237** | 7482 | 165 | 162 | 155 | 168 | 215 |
| Credit cards | **2294** | **384** | **379** | **374** | **385** | **479** | 2227 | 337 | 333 | 330 | 338 | 423 |
| Other | **3821** | **430** | **426** | **422** | **431** | **593** | 3722 | 419 | 416 | 413 | 422 | 593 |
| **Hong Kong** |  |  |  |  |  |  |  |  |  |  |  |  |
| Mortgages | **105399** | **7** | **6** | **5** | **8** | **12** | 106866 | 5 | 5 | 4 | 5 | 10 |
| Credit cards | **9097** | **289** | **257** | **253** | **301** | **496** | 9419 | 293 | 275 | 268 | 300 | 770 |
| Other | **6194** | **110** | **108** | **107** | **112** | **137** | 6210 | 106 | 102 | 101 | 105 | 249 |
| **UAE** |  |  |  |  |  |  |  |  |  |  |  |  |
| Mortgages | **2097** | **7** | **7** | **7** | **7** | **7** | 1993 | 8 | 8 | 8 | 8 | 8 |
| Credit cards | **545** | **34** | **33** | **32** | **34** | **39** | 536 | 31 | 31 | 31 | 31 | 35 |
| Other | **658** | **18** | **17** | **17** | **18** | **20** | 688 | 17 | 17 | 17 | 17 | 19 |
| **US** |  |  |  |  |  |  |  |  |  |  |  |  |
| Mortgages | **17736** | **7** | **7** | **7** | **8** | **10** | 16965 | 6 | 6 | 6 | 6 | 8 |
| Credit cards | **188** | **14** | **14** | **13** | **14** | **16** | 193 | 15 | 14 | 14 | 15 | 17 |
| **Other geographies** |  |  |  |  |  |  |  |  |  |  |  |  |
| Mortgages | **54323** | **123** | **117** | **112** | **131** | **177** | 51064 | 131 | 127 | 124 | 136 | 180 |
| Credit cards | **3665** | **170** | **169** | **167** | **173** | **198** | 3500 | 162 | 159 | 156 | 164 | 223 |
| Other | **2488** | **78** | **77** | **74** | **78** | **92** | 2292 | 72 | 72 | 69 | 73 | 93 |
| **Total** | **415278** | **2613** | **2539** | **2452** | **2662** | **3567** | 392361 | 2413 | 2351 | 2285 | 2440 | 3928 |
| **of which: mortgages** | **368934** | **481** | **459** | **436** | **502** | **736** | 347910 | 440 | 425 | 405 | 456 | 708 |
| Stage 1 | **328914** | **55** | **49** | **46** | **63** | **119** | 311875 | 51 | 47 | 43 | 58 | 129 |
| Stage 2 | **37499** | **144** | **133** | **120** | **149** | **287** | 33761 | 126 | 117 | 107 | 129 | 275 |
| Stage 3 | **2521** | **282** | **278** | **269** | **290** | **330** | 2274 | 263 | 261 | 255 | 269 | 304 |
| **of which: credit cards**  | **23779** | **1229** | **1188** | **1157** | **1246** | **1642** | 23290 | 1116 | 1086 | 1064 | 1124 | 1915 |
| Stage 1 | **19784** | **320** | **313** | **299** | **331** | **513** | 19915 | 276 | 267 | 258 | 284 | 701 |
| Stage 2 | **3708** | **695** | **660** | **643** | **700** | **907** | 3107 | 655 | 634 | 621 | 656 | 1027 |
| Stage 3 | **287** | **215** | **215** | **215** | **215** | **223** | 267 | 185 | 185 | 185 | 185 | 188 |
| **of which: others** | **22565** | **902** | **891** | **859** | **915** | **1189** | 21161 | 856 | 839 | 816 | 860 | 1305 |
| Stage 1 | **19717** | **224** | **218** | **204** | **232** | **415** | 18574 | 216 | 204 | 193 | 217 | 532 |
| Stage 2 | **2285** | **385** | **381** | **363** | **391** | **473** | 2005 | 360 | 355 | 343 | 363 | 483 |
| Stage 3 | **563** | **293** | **293** | **293** | **293** | **301** | 583 | 279 | 279 | 279 | 279 | 290 |

---

1Allowance for ECL sensitivities exclude portfolios utilising less complex modelling approaches.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **55** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

The ECL impact of the scenarios and management judgemental

adjustments are highly sensitive to movements in economic

forecasts. Based upon the sensitivity tables presented above, if the

Group ECL balance (excluding wholesale stage 3, which is assessed

individually) was estimated solely on the basis of the Central scenario,

Upside scenario, Downside 1 scenario or the Downside 2 scenario at

30 June 2025, it would increase/(decrease) as presented in the below

table.

---

| | | |
|:---|:---|:---|
|  | **Retail**<sup>1</sup> | **Wholesale**<sup>1</sup> |
| **Total Group ECL at 30 Jun 2025** | **$bn**  | **$bn** |
| Reported ECL | **2.6** | **2.4** |
| **Scenarios** |  |  |
| 100% consensus Central scenario | **(0.1)** | **(0.1)** |
| 100% consensus Upside scenario | **(0.2)** | **(0.5)** |
| 100% consensus Downside scenario | **0.0** | **0.8** |
| 100% Downside 2 scenario | **1.0** | **2.9** |

---

---

| | | |
|:---|:---|:---|
| Total Group ECL at 31 Dec 2024 |  |  |
| Reported ECL | 2.4 | 2.2 |
| Scenarios |  |  |
| 100% consensus Central scenario | (0.1) | (0.2) |
| 100% consensus Upside scenario | (0.1) | (0.6) |
| 100% consensus Downside scenario | 0.0 | 0.7 |
| 100% Downside 2 scenario | 1.5 | 4.3 |

---

1On the same basis as retail and wholesale sensitivity analysis.

At 30 June 2025, the Group reported ECL allowance increased by

$0.2bn in both the retail and wholesale portfolios, compared with

31 December 2024.

The Downside 2 ECL allowance decreased for both the retail and

wholesale portfolios. In the wholesale portfolio this was mainly due to

new PD models, and in the retail portfolio this was due to the reduced

severity of house price forecasts in Hong Kong.

Reconciliation of changes in gross

carrying/nominal amount and

allowances for loans and advances to

banks and customers

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 customer risk rating ('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' represents the

impact from volume movements within the Group's lending portfolio

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

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

parameters – further lending/repayment'.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees |
|  | **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** | **1489687** | **(1232)** | **115898** | **(2674)** | **23823** | **(6148)** | **93** | **(51)** | **1629501** | **(10105)** |
| Transfers of financial <br>instruments:<br>| **(44123)** | **(459)** | **39727** | **936** | **4396** | **(477)** | **—** | **—** | **—** | **—** |
| – transfers from stage 1 to <br>stage 2<br>| **(82621)** | **205** | **82621** | **(205)** | **—** | **—** | **—** | **—** | **—** | **—** |
| – transfers from stage 2 to <br>stage 1<br>| **39013** | **(639)** | **(39013)** | **639** | **—** | **—** | **—** | **—** | **—** | **—** |
| – transfers to stage 3 | **(693)** | **4** | **(4617)** | **609** | **5310** | **(613)** | **—** | **—** | **—** | **—** |
| – transfers from stage 3 | **178** | **(29)** | **736** | **(107)** | **(914)** | **136** | **—** | **—** | **—** | **—** |
| Net remeasurement of ECL <br>arising from transfer of stage<br>| **—** | **360** | **—** | **(341)** | **—** | **(19)** | **—** | **—** | **—** | **—** |
| Changes due to modifications <br>not derecognised<br>| **—** | **—** | **—** | **—** | **(7)** | **—** | **—** | **—** | **(7)** | **—** |
| Net new and further lending/ <br>repayments<br>| **44603** | **(59)** | **(22112)** | **317** | **(2225)** | **680** | **213** | **(8)** | **20479** | **930** |
| Changes to risk parameters – <br>credit quality <br>| **—** | **186** | **—** | **(1227)** | **—** | **(1998)** | **—** | **(5)** | **—** | **(3044)** |
| Changes to models used for <br>ECL calculation<br>| **—** | **(72)** | **—** | **250** | **—** | **(15)** | **—** | **—** | **—** | **163** |
| Assets written off | **—** | **—** | **—** | **—** | **(2029)** | **2029** | **—** | **—** | **(2029)** | **2029** |
| Credit-related modifications <br>that resulted in derecognition<br>| **—** | **—** | **—** | **—** | **(88)** | **9** | **—** | **—** | **(88)** | **9** |
| Foreign exchange and <br>others<sup>1,2</sup><br>| **57658** | **(68)** | **6253** | **(142)** | **1042** | **(323)** | **6** | **(3)** | **64959** | **(536)** |
| **At 30 Jun 2025** | **1547825** | **(1344)** | **139766** | **(2881)** | **24912** | **(6262)** | **312** | **(67)** | **1712815** | **(10554)** |
| ECL income statement <br>change for the period<br>|  | **415** |  | **(1001)** |  | **(1352)** |  | **(13)** |  | **(1951)** |
| Recoveries |  |  |  |  |  |  |  |  |  | **136** |
| Others |  |  |  |  |  |  |  |  |  | **(141)** |
| **Total ECL income statement** <br>**change for the period**<br>|  |  |  |  |  |  |  |  |  | **(1956)** |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **56** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | **6 months ended 30 Jun 2025** |
|  | **Gross carrying/**<br>**nominal amount**<br>| **Allowance**<br> **for ECL**<br>| **ECL release/**<br>**(charge)**<br>|
|  | **$m** | **$m** | **$m** |
| **As above** | **1712815** | **(10554)** | **(1956)** |
| Other financial assets measured at amortised cost | **890630** | **(122)** | **(31)** |
| Non-trading reverse purchase agreement commitments | **94957** | **—** | **—** |
| Performance and other guarantees not considered for IFRS 9 | **—** | **—** | **49** |
| **Summary of financial instruments to which the impairment requirements** <br>**in IFRS 9 are applied – by business segment/Summary consolidated income** <br>**statement**<br>| **2698402** | **(10676)** | **(1938)** |
| Debt instruments measured at FVOCI | **395908** | **(63)** | **(3)** |
| **Total allowance for ECL/total income statement ECL change for the period** | **N/A** | **(10739)** | **(1941)** |

---

1Total includes $1.3bn of gross carrying loans and advances to customers and banks, which were classified to assets held for sale, and corresponding allowance

for ECL of $6m, reflecting planned business disposals as disclosed in Note 15 on page 98.

2This includes $7.2bn of gross carrying loans and advances to customers and corresponding allowance for ECL of $7m in relation to the retained portfolio of home

and other loans associated with the sale of our retail banking operations in France, which were classified to assets held for sale in 2Q25, reflecting the planned

disposal as disclosed in Note 15 on page 98.

The allowance for ECL for loans and advances to customers and banks and relevant loan commitments and financial guarantees increased by $449m

from $10,105m at 31 December 2024, to $10,554m at 30 June 2025. This increase was driven by:

–$3,044m relating to underlying credit quality changes, including the

credit quality impact of financial instruments transferring between

stages; and

–foreign exchange and other movements of $536m.

These were partly offset by:

–$2,029m of assets written off, of which $1,227m in relation to

wholesale lending and $802m in relation to personal lending;

–$930m relating to volume movements, which included the ECL

allowance associated with new originations, assets derecognised and

further pending repayment;

–$163m relating to changes to models used for ECL calculation; and

–$9m relating to the credit-related modifications that resulted in

derecognition.

The ECL charge for the period of $1,951m presented in the previous table

consisted of $3,044m relating to underlying credit quality changes,

including the credit quality impact of financial instruments transferring

between stages. These were partly offset by $930m relating to underlying

net book volume, as well as $163m relating to changes to models used

for ECL calculation, which reflected updates to our PD models.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) |
|  | 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 | 1496805 | (1300) | 153084 | (3102) | 20799 | (7063) | 85 | (30) | 1670773 | (11495) |
| Transfers of financial <br>instruments:<br>| (19629) | (1259) | 6652 | 2302 | 12977 | (1043) |  |  |  |  |
| – transfers from stage 1 to<br>stage 2<br>| (116211) | 419 | 116211 | (419) |  |  |  |  |  |  |
| – transfers from stage 2 to<br>stage 1<br>| 98731 | (1627) | (98731) | 1627 |  |  |  |  |  |  |
| – transfers to stage 3 | (2799) | 16 | (12230) | 1321 | 15029 | (1337) |  |  |  |  |
| – transfers from stage 3 | 650 | (67) | 1402 | (227) | (2052) | 294 |  |  |  |  |
| Net remeasurement of ECL <br>arising from transfer of stage<br>|  | 959 |  | (831) |  | (144) |  |  |  | (16) |
| Changes due to modifications <br>not derecognised<br>|  |  |  |  | (25) |  |  |  | (25) |  |
| Net new and further <br>lending/repayments<br>| 87833 | (168) | (37731) | 589 | (5246) | 1689 | 7 | (7) | 44863 | 2103 |
| Changes to risk parameters – <br>credit quality<br>|  | 363 |  | (1773) |  | (3945) |  | (11) |  | (5366) |
| Changes to models used for <br>ECL calculation<br>|  | 68 |  | (4) |  | (20) |  |  |  | 44 |
| Assets written off |  |  |  |  | (4459) | 4459 |  |  | (4459) | 4459 |
| Credit-related modifications <br>that resulted in derecognition<br>|  |  |  |  |  |  |  |  |  |  |
| Foreign exchange and <br>others<sup>1,2,3,4</sup><br>| (75322) | 105 | (6107) | 145 | (223) | (81) | 1 | (3) | (81651) | 166 |
| At 31 Dec 2024 | 1489687 | (1232) | 115898 | (2674) | 23823 | (6148) | 93 | (51) | 1629501 | (10105) |
| ECL income statement <br>change for the period<br>|  | 1222 |  | (2019) |  | (2420) |  | (18) |  | (3235) |
| Recoveries |  |  |  |  |  |  |  |  |  | 260 |
| Other |  |  |  |  |  |  |  |  |  | (158) |
| Total ECL income statement <br>change for the period<sup>2</sup><br>|  |  |  |  |  |  |  |  |  | (3133) |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **57** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including <br>loan commitments and financial guarantees (continued) |
|  | At 31 Dec 2024 | At 31 Dec 2024 | 12 months ended 31 Dec 2024 |
|  | Gross carrying/<br>nominal amount<br>| Allowance <br>for ECL<br>| ECL charge |
|  | $m | $m | $m |
| As above | 1629501 | (10105) | (3133) |
| Other financial assets measured at amortised cost | 828580 | (92) | (114) |
| Non-trading reverse purchase agreement commitments | 49289 |  |  |
| Performance and other guarantees not considered for IFRS 9 |  |  | (173) |
| Summary of financial instruments to which the impairment requirements in <br>IFRS 9 are applied – by business segment/Summary consolidated income <br>statement<br>| 2507370 | (10197) | (3420) |
| Debt instruments measured at FVOCI | 346124 | (54) | 6 |
| Total allowance for ECL/total income statement ECL change for the period | N/A | (10251) | (3414) |

---

1Total includes $3.7bn of gross carrying loans and advances, which were classified from assets held for sale, and a corresponding allowance for ECL of $46m,

reflecting planned business disposals as disclosed in Note 15 on page 98.

2Total includes $35.3bn of nominal amount and $21m of corresponding allowance for ECL related to derecognition of loan commitments and financial guarantees

following the sale of our banking business in Canada during 2024.

3Total includes $2.7bn of nominal amount related to derecognition of loan commitments and financial guarantees following the sale of our banking business in

Argentina during 2024.

4The 31 December 2024 total ECL income statement change of $3,133m is attributable to $882m for the six months ended 30 June 2024 and $2,251m to the six

months ended 31 December 2024.

Credit quality of financial instruments

We assess the credit quality of all financial instruments that are

subject to credit risk. The credit quality of financial instruments is a

point-in-time assessment of PD, whereas stages 1 and 2 are

determined based on relative deterioration of credit quality since initial

recognition. Accordingly, for non-credit-impaired financial instruments,

there is no direct relationship between the credit quality assessment

and stages 1 and 2, though typically the lower credit quality bands

exhibit a higher proportion in stage 2.

The five credit quality classifications each encompass a range of

granular internal credit rating grades assigned to wholesale and

personal lending businesses and the external ratings attributed by

external agencies to debt securities, as shown in the following table.

Personal lending credit quality is disclosed based on a 12-month point-

in-time PD adjusted for multiple economic scenarios. The credit

quality classifications for wholesale lending are based on internal

credit risk ratings.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Credit quality classification | Credit quality classification | Credit quality classification | Credit quality classification | Credit quality classification | Credit quality classification | Credit quality classification |
|  | **Sovereign debt**<br>**securities**<br>**and bills**<br>| **Other debt**<br>**securities**<br>**and bills**<br>| **Wholesale lending**<br>**and derivatives** | **Wholesale lending**<br>**and derivatives** | **Retail lending** | **Retail lending** |
|  | **External credit**<br>**rating**<br>| **External credit**<br>**rating**<br>| **Internal credit**<br>**rating**<sup>1</sup><br>| **12-month regulatory**<br>**probability of**<br>**default %**<br>| **Internal credit**<br>**rating**<br>| **12 month probability-** <br>**weighted** <br>**PD %**<sup>2</sup><br>|
| **Quality classification** |  |  |  |  |  |  |
| Strong | **BBB and above** | **A- and above** | **CRR 1 to CRR 2** | **0 – 0.169** | **Band 1 and 2** | **0 – <=0.5** |
| Good | **BBB- to BB** | **BBB+ to BBB-** | **CRR 3** | **0.170 – 0.740** | **Band 3** | **>0.5 – <=1.5** |
| Satisfactory | **BB- to B and** <br>**unrated**<br>| **BB+ to B and** <br>**unrated**<br>| **CRR 4 to CRR 5** | **0.741 – 4.914** | **Band 4 and 5** | **>1.5 – <=20** |
| Sub-standard | **B- to C** | **B- to C** | **CRR 6 to CRR 8** | **4.915 – 99.999** | **Band 6** | **>20 – <100** |
| Credit impaired | **Default** | **Default** | **CRR 9 to CRR 10** | **100** | **Band 7** | **100** |

---

1Customer risk rating ('CRR').

212-month point-in-time probability-weighted PD.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **58** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **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 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Gross carrying/nominal amount** | **Gross carrying/nominal amount** | **Gross carrying/nominal amount** | **Gross carrying/nominal amount** | **Gross carrying/nominal amount** | **Gross carrying/nominal amount** | **Allowance**<br>**for ECL** | **Net** | Gross carrying/nominal amount | Gross carrying/nominal amount | Gross carrying/nominal amount | Gross carrying/nominal amount | Gross carrying/nominal amount | Gross carrying/nominal amount | Allowance <br>for ECL | Net |
|  | **Strong** | **Good** | **Satisfactory** | **Sub-**<br>**standard**<br>| **Credit**<br>**impaired**<br>| **Total** | **Allowance**<br>**for ECL** | **Net** | Strong | Good | Satisfactory | Sub- <br>standard<br>| Credit <br>impaired<br>| Total  | Allowance <br>for ECL | Net |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | $m | $m | $m | $m | $m | $m | $m | $m |
| Loans and advances to <br>customers at amortised <br>cost<br>| **531379** | **210722** | **201620** | **24479** | **23665** | **991865** | **(10143)** | **981722** | 515266 | 193080 | 186416 | 22906 | 22705 | 940373 | (9715) | 930658 |
| – stage 1 | **510598** | **180542** | **155546** | **5983** | **—** | **852669** | **(1181)** | **851488** | 498415 | 170420 | 150818 | 4767 |  | 824420 | (1078) | 823342 |
| – stage 2 | **20781** | **30180** | **45881** | **18496** | **—** | **115338** | **(2752)** | **112586** | 16851 | 22660 | 35598 | 18139 |  | 93248 | (2546) | 90702 |
| – stage 3 | **—** | **—** | **—** | **—** | **23550** | **23550** | **(6144)** | **17406** |  |  |  |  | 22615 | 22615 | (6040) | 16575 |
| – POCI | **—** | **—** | **193** | **—** | **115** | **308** | **(66)** | **242** |  |  |  |  | 90 | 90 | (51) | 39 |
| Loans and advances to <br>banks at amortised cost<br>| **95955** | **5377** | **6111** | **151** | **3** | **107597** | **(15)** | **107582** | 92621 | 4255 | 5040 | 134 | 2 | 102052 | (13) | 102039 |
| – stage 1 | **95880** | **5340** | **6076** | **132** | **—** | **107428** | **(10)** | **107418** | 92528 | 4226 | 4981 | 117 |  | 101852 | (9) | 101843 |
| – stage 2 | **75** | **37** | **35** | **19** | **—** | **166** | **(2)** | **164** | 93 | 29 | 59 | 17 |  | 198 | (2) | 196 |
| – stage 3 | **—** | **—** | **—** | **—** | **3** | **3** | **(3)** | **—** |  |  |  |  | 2 | 2 | (2) |  |
| – POCI | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |  |  |  |  |  |  |  |  |
| Other financial assets <br>measured at amortised <br>cost<br>| **755386** | **86905** | **47766** | **377** | **196** | **890630** | **(122)** | **890508** | 702570 | 85700 | 39660 | 497 | 153 | 828580 | (92) | 828488 |
| – stage 1 | **755052** | **86039** | **47083** | **249** | **—** | **888423** | **(74)** | **888349** | 702373 | 85032 | 38977 | 239 |  | 826621 | (64) | 826557 |
| – stage 2 | **334** | **866** | **683** | **128** | **—** | **2011** | **(17)** | **1994** | 197 | 668 | 683 | 258 |  | 1806 | (5) | 1801 |
| – stage 3 | **—** | **—** | **—** | **—** | **196** | **196** | **(31)** | **165** |  |  |  |  | 153 | 153 | (23) | 130 |
| – POCI | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |  |  |  |  |  |  |  |  |
| Loans and other credit-<br>related commitments<br>| **441769** | **150302** | **88854** | **9736** | **1044** | **691705** | **(352)** | **691353** | 400120 | 131396 | 77220 | 9670 | 961 | 619367 | (348) | 619019 |
| – stage 1 | **439548** | **144242** | **78922** | **5467** | **—** | **668179** | **(143)** | **668036** | 398779 | 125956 | 67949 | 4547 |  | 597231 | (137) | 597094 |
| – stage 2 | **2221** | **6060** | **9932** | **4269** | **—** | **22482** | **(119)** | **22363** | 1341 | 5440 | 9271 | 5123 |  | 21175 | (121) | 21054 |
| – stage 3 | **—** | **—** | **—** | **—** | **1040** | **1040** | **(89)** | **951** |  |  |  |  | 958 | 958 | (90) | 868 |
| – POCI | **—** | **—** | **—** | **—** | **4** | **4** | **(1)** | **3** |  |  |  |  | 3 | 3 |  | 3 |
| Financial guarantees | **7265** | **4353** | **4117** | **551** | **319** | **16605** | **(44)** | **16561** | 7365 | 4263 | 4399 | 723 | 248 | 16998 | (29) | 16969 |
| – stage 1 | **7130** | **3942** | **3304** | **130** | **—** | **14506** | **(10)** | **14496** | 7352 | 4192 | 3625 | 184 |  | 15353 | (8) | 15345 |
| – stage 2 | **135** | **411** | **813** | **421** | **—** | **1780** | **(8)** | **1772** | 13 | 71 | 774 | 539 |  | 1397 | (5) | 1392 |
| – stage 3 | **—** | **—** | **—** | **—** | **319** | **319** | **(26)** | **293** |  |  |  |  | 248 | 248 | (16) | 232 |
| – POCI | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |  |  |  |  |  |  |  |  |
| **Total** | **1831754** | **457659** | **348468** | **35294** | **25227** | **2698402** | **(10676)** | **2687726** | 1717942 | 418694 | 312735 | 33930 | 24069 | 2507370 | (10197) | 2497173 |
| Debt instruments at <br>FVOCI<sup>1</sup><br>|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| – stage 1 | **376703** | **11973** | **8141** | **4580** | **—** | **401397** | **(37)** | **401360** | 336264 | 9448 | 7290 |  |  | 353002 | (31) | 352971 |
| – stage 2 | **59** | **68** | **489** | **506** | **—** | **1122** | **(21)** | **1101** | 49 |  | 478 | 380 |  | 907 | (23) | 884 |
| – stage 3 | **—** | **—** | **—** | **—** | **31** | **31** | **(5)** | **26** |  |  |  |  |  |  |  |  |
| – POCI | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **—** |  |  |  |  |  |  |  |  |
| **Total** | **376762** | **12041** | **8630** | **5086** | **31** | **402550** | **(63)** | **402487** | 336313 | 9448 | 7768 | 380 |  | 353909 | (54) | 353855 |

---

1For the purposes of this disclosure, gross carrying value is defined as the amortised cost of a financial asset, before adjusting for any loss allowance. As such, the gross carrying value of debt instruments at FVOCI will not reconcile to the

balance sheet as it excludes fair value gains and losses.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **59** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

Personal lending

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution | Total personal lending for loans and advances to customers by stage distribution |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **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 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | Gross carrying amount | Gross carrying amount | Gross carrying amount | Gross carrying amount | Allowance for ECL | Allowance for ECL | Allowance for ECL | Allowance for ECL |
|  | **Stage 1** | **Stage 2** | **Stage 3** | **Total** | **Stage 1** | **Stage 2** | **Stage 3** | **Total** | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | $m | $m | $m | $m | $m | $m | $m | $m |
| **By portfolio** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| First lien residential mortgages | **343874** | **37620** | **2705** | **384199** | **(63)** | **(147)** | **(306)** | **(516)** | 324703 | 34177 | 2450 | 361330 | (59) | (130) | (284) | (473) |
| – of which: interest only (including offset)  | **22415** | **2771** | **120** | **25306** | **(3)** | **(21)** | **(21)** | **(45)** | 21155 | 2457 | 103 | 23715 | (3) | (10) | (17) | (30) |
| – affordability (including US adjustable rate <br>mortgages)<br>| **17448** | **483** | **259** | **18190** | **(4)** | **(2)** | **(6)** | **(12)** | 16628 | 386 | 243 | 17257 | (2) | (2) | (7) | (11) |
| Other personal lending | **77260** | **6280** | **1216** | **84756** | **(555)** | **(1081)** | **(588)** | **(2224)** | 79043 | 5742 | 1110 | 85895 | (511) | (1028) | (512) | (2051) |
| – second lien residential mortgages | **373** | **9** | **20** | **402** | **—** | **—** | **(3)** | **(3)** | 366 | 10 | 19 | 395 |  |  | (2) | (2) |
| – guaranteed loans in respect of residential <br>property<br>| **46** | **9** | **1** | **56** | **—** | **—** | **(1)** | **(1)** | 6492 | 186 | 20 | 6698 | (2) | (2) | (5) | (9) |
| – other personal lending which is secured | **35037** | **416** | **227** | **35680** | **(12)** | **(4)** | **(44)** | **(60)** | 30564 | 478 | 138 | 31180 | (12) | (4) | (15) | (31) |
| – credit cards | **20983** | **3554** | **386** | **24923** | **(308)** | **(694)** | **(228)** | **(1230)** | 21611 | 2991 | 313 | 24915 | (268) | (660) | (199) | (1127) |
| – other personal lending which is unsecured | **19056** | **2072** | **554** | **21682** | **(220)** | **(368)** | **(298)** | **(886)** | 18198 | 1864 | 598 | 20660 | (214) | (345) | (279) | (838) |
| – motor vehicle finance | **1765** | **220** | **28** | **2013** | **(15)** | **(15)** | **(14)** | **(44)** | 1812 | 213 | 22 | 2047 | (15) | (17) | (12) | (44) |
| **Total** | **421134** | **43900** | **3921** | **468955** | **(618)** | **(1228)** | **(894)** | **(2740)** | 403746 | 39919 | 3560 | 447225 | (570) | (1158) | (796) | (2524) |
| **By legal entity** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| HSBC UK Bank plc | **170263** | **34294** | **1295** | **205852** | **(181)** | **(342)** | **(257)** | **(780)** | 152338 | 31325 | 1075 | 184738 | (148) | (307) | (211) | (666) |
| HSBC Bank plc | **18358** | **1049** | **404** | **19811** | **(18)** | **(20)** | **(118)** | **(156)** | 23501 | 1198 | 324 | 25023 | (17) | (24) | (99) | (140) |
| The Hongkong and Shanghai Banking <br>Corporation Limited<br>| **194681** | **6578** | **1087** | **202346** | **(172)** | **(405)** | **(159)** | **(736)** | 191614 | 5519 | 1170 | 198303 | (174) | (385) | (164) | (723) |
| HSBC Bank Middle East Limited | **3685** | **156** | **43** | **3884** | **(13)** | **(25)** | **(30)** | **(68)** | 3678 | 158 | 40 | 3876 | (14) | (29) | (30) | (73) |
| HSBC North America Holdings Inc. | **21542** | **569** | **354** | **22465** | **(6)** | **(12)** | **(11)** | **(29)** | 20851 | 497 | 327 | 21675 | (4) | (12) | (11) | (27) |
| Grupo Financiero HSBC, S.A. de C.V. | **11774** | **1200** | **734** | **13708** | **(221)** | **(423)** | **(317)** | **(961)** | 11016 | 1172 | 620 | 12808 | (207) | (400) | (279) | (886) |
| Other trading entities | **831** | **54** | **4** | **889** | **(7)** | **(1)** | **(2)** | **(10)** | 748 | 50 | 4 | 802 | (6) | (1) | (2) | (9) |
| **Total** | **421134** | **43900** | **3921** | **468955** | **(618)** | **(1228)** | **(894)** | **(2740)** | 403746 | 39919 | 3560 | 447225 | (570) | (1158) | (796) | (2524) |

---

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution | Total personal lending for loans and other credit-related commitments and financial guarantees by stage distribution |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **At 30 Jun 2025** | **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 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Nominal amount** | **Nominal amount** | **Nominal amount** | **Nominal amount** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | Nominal amount | Nominal amount | Nominal amount | Nominal amount | Allowance for ECL | Allowance for ECL | Allowance for ECL | Allowance for ECL |
|  | **Stage 1** | **Stage 2** | **Stage 3** | **Total** | **Stage 1** | **Stage 2** | **Stage 3** | **Total** | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | $m | $m | $m | $m | $m | $m | $m | $m |
| HSBC UK Bank plc | **58361** | **846** | **46** | **59253** | **(11)** | **(3)** | **(1)** | **(15)** | 51078 | 442 | 47 | 51567 | (6) |  | (3) | (9) |
| HSBC Bank plc | **1607** | **39** | **2** | **1648** | **(1)** | **—** | **—** | **(1)** | 1605 | 7 | 2 | 1614 |  |  |  |  |
| The Hongkong and Shanghai Banking <br>Corporation Limited<br>| **194455** | **1020** | **51** | **195526** | **(4)** | **—** | **—** | **(4)** | 189737 | 1165 | 35 | 190937 | (4) |  | (2) | (6) |
| HSBC Bank Middle East Limited | **2585** | **7** | **—** | **2592** | **—** | **—** | **—** | **—** | 2452 | 7 |  | 2459 |  |  |  |  |
| HSBC North America Holdings Inc. | **3415** | **82** | **22** | **3519** | **—** | **—** | **—** | **—** | 3707 | 68 | 2 | 3777 |  |  |  |  |
| Grupo Financiero HSBC, S.A. de C.V. | **4570** | **—** | **—** | **4570** | **(6)** | **—** | **—** | **(6)** | 3892 |  |  | 3892 | (7) |  |  | (7) |
| Other trading entities | **468** | **4** | **1** | **473** | **—** | **—** | **—** | **—** | 434 | 2 |  | 436 |  |  |  |  |
| **Total** | **265461** | **1998** | **122** | **267581** | **(22)** | **(3)** | **(1)** | **(26)** | 252905 | 1691 | 86 | 254682 | (17) |  | (5) | (22) |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **60** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

Wholesale lending

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Total wholesale lending for loans and advances to banks and customers by stage distribution | Total wholesale lending for loans and advances to banks and customers by stage distribution | Total wholesale lending for loans and advances to banks and customers by stage distribution | Total wholesale lending for loans and advances to banks and customers by stage distribution | Total wholesale lending for loans and advances to banks and customers by stage distribution | Total wholesale lending for loans and advances to banks and customers by stage distribution | Total wholesale lending for loans and advances to banks and customers by stage distribution | Total wholesale lending for loans and advances to banks and customers by stage distribution | Total wholesale lending for loans and advances to banks and customers by stage distribution | Total wholesale lending for loans and advances to banks and customers by stage distribution | Total wholesale lending for loans and advances to banks and customers by stage distribution |
|  | **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** |
|  | **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** |
| Corporate and commercial | **344579** | **68592** | **18982** | **115** | **432268** | **(502)** | **(1487)** | **(5084)** | **(66)** | **(7139)** |
| – agriculture, forestry and fishing | **6628** | **980** | **341** | **—** | **7949** | **(13)** | **(35)** | **(59)** | **—** | **(107)** |
| – mining and quarrying | **7243** | **402** | **394** | **—** | **8039** | **(9)** | **(6)** | **(64)** | **—** | **(79)** |
| – manufacturing | **74634** | **12716** | **1631** | **29** | **89010** | **(98)** | **(144)** | **(515)** | **(24)** | **(781)** |
| – electricity, gas, steam and air-<br>conditioning supply<br>| **16310** | **1505** | **268** | **—** | **18083** | **(18)** | **(25)** | **(110)** | **—** | **(153)** |
| – water supply, sewerage, waste <br>management and remediation<br>| **2449** | **204** | **44** | **—** | **2697** | **(5)** | **(3)** | **(12)** | **—** | **(20)** |
| – real estate and construction | **54277** | **28434** | **9292** | **75** | **92078** | **(87)** | **(789)** | **(2150)** | **(39)** | **(3065)** |
| – of which: commercial real estate | **41151** | **24129** | **8071** | **71** | **73422** | **(61)** | **(732)** | **(1628)** | **(35)** | **(2456)** |
| – wholesale and retail trade, repair of <br>motor vehicles and motorcycles<br>| **69821** | **9728** | **2632** | **11** | **82192** | **(69)** | **(88)** | **(1134)** | **(3)** | **(1294)** |
| – transportation and storage | **16837** | **4359** | **264** | **—** | **21460** | **(19)** | **(102)** | **(101)** | **—** | **(222)** |
| – accommodation and food | **11386** | **2246** | **1659** | **—** | **15291** | **(33)** | **(64)** | **(224)** | **—** | **(321)** |
| – publishing, audiovisual and <br>broadcasting<br>| **20972** | **2021** | **411** | **—** | **23404** | **(56)** | **(69)** | **(113)** | **—** | **(238)** |
| – professional, scientific and technical <br>activities<br>| **24232** | **2125** | **584** | **—** | **26941** | **(35)** | **(41)** | **(187)** | **—** | **(263)** |
| – administrative and support services | **18706** | **2263** | **670** | **—** | **21639** | **(24)** | **(66)** | **(277)** | **—** | **(367)** |
| – public administration and defence, <br>compulsory social security<br>| **76** | **—** | **—** | **—** | **76** | **—** | **—** | **—** | **—** | **—** |
| – education | **1600** | **198** | **47** | **—** | **1845** | **(4)** | **(8)** | **(20)** | **—** | **(32)** |
| – health and care | **3549** | **368** | **174** | **—** | **4091** | **(9)** | **(13)** | **(29)** | **—** | **(51)** |
| – arts, entertainment and recreation | **1588** | **158** | **93** | **—** | **1839** | **(4)** | **(5)** | **(22)** | **—** | **(31)** |
| – other services | **6465** | **731** | **315** | **—** | **7511** | **(17)** | **(20)** | **(63)** | **—** | **(100)** |
| – activities of households | **778** | **39** | **—** | **—** | **817** | **—** | **—** | **—** | **—** | **—** |
| – extra-territorial organisations and <br>bodies activities<br>| **136** | **—** | **—** | **—** | **136** | **—** | **—** | **—** | **—** | **—** |
| – government | **6871** | **106** | **163** | **—** | **7140** | **(2)** | **—** | **(4)** | **—** | **(6)** |
| – asset-backed securities | **21** | **9** | **—** | **—** | **30** | **—** | **(9)** | **—** | **—** | **(9)** |
| Non-bank financial institutions | **86956** | **2846** | **647** | **193** | **90642** | **(61)** | **(37)** | **(166)** | **—** | **(264)** |
| Loans and advances to banks | **107428** | **166** | **3** | **—** | **107597** | **(10)** | **(2)** | **(3)** | **—** | **(15)** |
| **At 30 Jun 2025**<sup>1</sup> | **538963** | **71604** | **19632** | **308** | **630507** | **(573)** | **(1526)** | **(5253)** | **(66)** | **(7418)** |
| **By legal entity** |  |  |  |  |  |  |  |  |  |  |
| HSBC UK Bank plc | **94822** | **10065** | **3918** | **—** | **108805** | **(180)** | **(359)** | **(691)** | **—** | **(1230)** |
| HSBC Bank plc | **94153** | **5943** | **1926** | **53** | **102075** | **(75)** | **(124)** | **(542)** | **(25)** | **(766)** |
| The Hongkong and Shanghai Banking <br>Corporation Limited<br>| **271675** | **46425** | **11495** | **57** | **329652** | **(209)** | **(843)** | **(2979)** | **(37)** | **(4068)** |
| HSBC Bank Middle East Limited | **26606** | **1697** | **926** | **4** | **29233** | **(13)** | **(15)** | **(503)** | **(4)** | **(535)** |
| HSBC North America Holdings Inc. | **29884** | **5036** | **750** | **194** | **35864** | **(38)** | **(116)** | **(208)** | **—** | **(362)** |
| Grupo Financiero HSBC, S.A. de C.V. | **12862** | **2186** | **267** | **—** | **15315** | **(44)** | **(64)** | **(144)** | **—** | **(252)** |
| Other trading entities | **8899** | **252** | **350** | **—** | **9501** | **(14)** | **(5)** | **(186)** | **—** | **(205)** |
| Holding companies, shared service <br>centres and intra-Group eliminations<br>| **62** | **—** | **—** | **—** | **62** | **—** | **—** | **—** | **—** | **—** |
| **At 30 Jun 2025**<sup>1</sup> | **538963** | **71604** | **19632** | **308** | **630507** | **(573)** | **(1526)** | **(5253)** | **(66)** | **(7418)** |

---

1The shift of 'gross carrying amount' between stage 1 and 2 arose mainly in Asia from higher average PD for the remaining term at the reporting date, reflecting

updates to our PD models and ongoing market challenges. PDs at the reporting date were compared with the PD calculated at origination.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **61** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Total wholesale lending for loans and advances to banks and customers by stage distribution (continued) | Total wholesale lending for loans and advances to banks and customers by stage distribution (continued) | Total wholesale lending for loans and advances to banks and customers by stage distribution (continued) | Total wholesale lending for loans and advances to banks and customers by stage distribution (continued) | Total wholesale lending for loans and advances to banks and customers by stage distribution (continued) | Total wholesale lending for loans and advances to banks and customers by stage distribution (continued) | Total wholesale lending for loans and advances to banks and customers by stage distribution (continued) | Total wholesale lending for loans and advances to banks and customers by stage distribution (continued) | Total wholesale lending for loans and advances to banks and customers by stage distribution (continued) | Total wholesale lending for loans and advances to banks and customers by stage distribution (continued) | Total wholesale lending for loans and advances to banks and customers by stage distribution (continued) |
|  | 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 |
|  | 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 |
| Corporate and commercial | 340987 | 51231 | 18376 | 90 | 410684 | (463) | (1358) | (4883) | (51) | (6755) |
| – agriculture, forestry and fishing | 5437 | 1314 | 282 |  | 7033 | (14) | (34) | (46) |  | (94) |
| – mining and quarrying | 6811 | 463 | 318 |  | 7592 | (6) | (7) | (32) |  | (45) |
| – manufacturing | 70987 | 10250 | 1466 | 21 | 82724 | (83) | (172) | (618) | (20) | (893) |
| – electricity, gas, steam and air-<br>conditioning supply<br>| 15277 | 971 | 209 |  | 16457 | (14) | (23) | (85) |  | (122) |
| – water supply, sewerage, waste <br>management and remediation<br>| 2530 | 388 | 43 |  | 2961 | (4) | (4) | (16) |  | (24) |
| – real estate and construction | 63794 | 17320 | 8887 | 62 | 90063 | (90) | (666) | (1811) | (31) | (2598) |
| – of which: commercial real estate | 49994 | 14720 | 7558 | 61 | 72333 | (67) | (604) | (1355) | (29) | (2055) |
| – wholesale and retail trade, repair of <br>motor vehicles and motorcycles<br>| 66977 | 8125 | 2725 | 3 | 77830 | (67) | (117) | (1188) |  | (1372) |
| – transportation and storage | 18589 | 3637 | 417 |  | 22643 | (15) | (74) | (232) |  | (321) |
| – accommodation and food | 11406 | 1718 | 1610 |  | 14734 | (30) | (55) | (214) |  | (299) |
| – publishing, audiovisual and broadcasting | 18181 | 1416 | 229 |  | 19826 | (42) | (55) | (61) |  | (158) |
| – professional, scientific and technical <br>activities<br>| 23044 | 2436 | 644 | 4 | 26128 | (29) | (49) | (188) |  | (266) |
| – administrative and support services | 17671 | 1707 | 739 |  | 20117 | (26) | (40) | (254) |  | (320) |
| – public administration and defence, <br>compulsory social security<br>| 64 |  |  |  | 64 |  |  |  |  |  |
| – education | 1361 | 192 | 43 |  | 1596 | (4) | (7) | (16) |  | (27) |
| – health and care | 3357 | 489 | 184 |  | 4030 | (8) | (18) | (25) |  | (51) |
| – arts, entertainment and recreation | 1817 | 171 | 78 |  | 2066 | (5) | (4) | (26) |  | (35) |
| – other services | 6470 | 491 | 327 |  | 7288 | (24) | (20) | (66) |  | (110) |
| – activities of households | 582 | 7 |  |  | 589 |  |  |  |  |  |
| – extra-territorial organisations and <br>bodies activities<br>| 118 |  |  |  | 118 |  |  |  |  |  |
| – government | 6495 | 123 | 175 |  | 6793 | (2) |  | (5) |  | (7) |
| – asset-backed securities | 19 | 13 |  |  | 32 |  | (13) |  |  | (13) |
| Non-bank financial institutions | 79687 | 2098 | 679 |  | 82464 | (45) | (30) | (361) |  | (436) |
| Loans and advances to banks | 101852 | 198 | 2 |  | 102052 | (9) | (2) | (2) |  | (13) |
| At 31 Dec 2024 | 522526 | 53527 | 19057 | 90 | 595200 | (517) | (1390) | (5246) | (51) | (7204) |
| By legal entity |  |  |  |  |  |  |  |  |  |  |
| HSBC UK Bank plc | 81630 | 12772 | 3356 |  | 97758 | (197) | (403) | (603) |  | (1203) |
| HSBC Bank plc | 85022 | 5843 | 2305 | 47 | 93217 | (54) | (111) | (752) | (22) | (939) |
| The Hongkong and Shanghai Banking <br>Corporation Limited<br>| 279535 | 27078 | 11483 | 39 | 318135 | (170) | (677) | (2999) | (28) | (3874) |
| HSBC Bank Middle East Limited | 26359 | 951 | 848 | 4 | 28162 | (20) | (6) | (463) | (1) | (490) |
| HSBC North America Holdings Inc. | 30107 | 4665 | 503 |  | 35275 | (31) | (141) | (121) |  | (293) |
| Grupo Financiero HSBC, S.A. de C.V. | 11957 | 1703 | 230 |  | 13890 | (35) | (48) | (128) |  | (211) |
| Other trading entities | 7840 | 515 | 332 |  | 8687 | (10) | (4) | (180) |  | (194) |
| Holding companies, shared service <br>centres and intra-group eliminations<br>| 76 |  |  |  | 76 |  |  |  |  |  |
| At 31 Dec 2024 | 522526 | 53527 | 19057 | 90 | 595200 | (517) | (1390) | (5246) | (51) | (7204) |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **62** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Total wholesale lending for loans and other credit-related commitments and financial guarantees by stage distribution<sup>1</sup> | Total wholesale lending for loans and other credit-related commitments and financial guarantees by stage distribution<sup>1</sup> | Total wholesale lending for loans and other credit-related commitments and financial guarantees by stage distribution<sup>1</sup> | Total wholesale lending for loans and other credit-related commitments and financial guarantees by stage distribution<sup>1</sup> | Total wholesale lending for loans and other credit-related commitments and financial guarantees by stage distribution<sup>1</sup> | Total wholesale lending for loans and other credit-related commitments and financial guarantees by stage distribution<sup>1</sup> | Total wholesale lending for loans and other credit-related commitments and financial guarantees by stage distribution<sup>1</sup> | Total wholesale lending for loans and other credit-related commitments and financial guarantees by stage distribution<sup>1</sup> | Total wholesale lending for loans and other credit-related commitments and financial guarantees by stage distribution<sup>1</sup> | Total wholesale lending for loans and other credit-related commitments and financial guarantees by stage distribution<sup>1</sup> | Total wholesale lending for loans and other credit-related commitments and financial guarantees by stage distribution<sup>1</sup> |
|  | **Nominal amount** | **Nominal amount** | **Nominal amount** | **Nominal amount** | **Nominal amount** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** |
|  | **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** |
| Corporate and commercial | **251291** | **20755** | **1099** | **4** | **273149** | **(119)** | **(121)** | **(113)** | **(1)** | **(354)** |
| Financial  | **165933** | **1509** | **138** | **—** | **167580** | **(12)** | **(3)** | **(1)** | **—** | **(16)** |
| **At 30 Jun 2025**<sup>2</sup> | **417224** | **22264** | **1237** | **4** | **440729** | **(131)** | **(124)** | **(114)** | **(1)** | **(370)** |
| **By legal entity** |  |  |  |  |  |  |  |  |  |  |
| HSBC UK Bank plc | **49016** | **2318** | **474** | **—** | **51808** | **(25)** | **(18)** | **(61)** | **—** | **(104)** |
| HSBC Bank plc | **195785** | **3975** | **250** | **3** | **200013** | **(25)** | **(21)** | **(21)** | **—** | **(67)** |
| The Hongkong and Shanghai Banking <br>Corporation Limited<br>| **70803** | **8532** | **77** | **—** | **79412** | **(52)** | **(44)** | **(7)** | **—** | **(103)** |
| HSBC Bank Middle East Limited | **9406** | **421** | **34** | **1** | **9862** | **(2)** | **(6)** | **(21)** | **(1)** | **(30)** |
| HSBC North America Holdings Inc. | **88578** | **6701** | **361** | **—** | **95640** | **(25)** | **(34)** | **(2)** | **—** | **(61)** |
| Grupo Financiero HSBC, S.A. de C.V. | **1924** | **177** | **—** | **—** | **2101** | **(2)** | **—** | **—** | **—** | **(2)** |
| Other trading entities | **1712** | **140** | **41** | **—** | **1893** | **—** | **(1)** | **(2)** | **—** | **(3)** |
| **At 30 Jun 2025**<sup>2</sup> | **417224** | **22264** | **1237** | **4** | **440729** | **(131)** | **(124)** | **(114)** | **(1)** | **(370)** |
| Corporate and commercial | 241249 | 18685 | 1033 | 3 | 260970 | (118) | (121) | (98) |  | (337) |
| Financial | 118430 | 2196 | 87 |  | 120713 | (10) | (5) | (3) |  | (18) |
| At 31 Dec 2024 | 359679 | 20881 | 1120 | 3 | 381683 | (128) | (126) | (101) |  | (355) |
| By legal entity |  |  |  |  |  |  |  |  |  |  |
| HSBC UK Bank plc | 37848 | 4540 | 445 |  | 42833 | (27) | (36) | (57) |  | (120) |
| HSBC Bank plc | 144941 | 6118 | 256 | 3 | 151318 | (21) | (30) | (21) |  | (72) |
| The Hongkong and Shanghai Banking <br>Corporation Limited<br>| 72860 | 3973 | 99 |  | 76932 | (54) | (32) | (6) |  | (92) |
| HSBC Bank Middle East Limited | 8879 | 329 | 35 |  | 9243 | (5) | (1) | (10) |  | (16) |
| HSBC North America Holdings Inc. | 91314 | 5723 | 226 |  | 97263 | (20) | (26) | (5) |  | (51) |
| Grupo Financiero HSBC, S.A. de C.V. | 2334 | 53 |  |  | 2387 | (1) | (1) |  |  | (2) |
| Other trading entities | 1503 | 145 | 59 |  | 1707 |  |  | (2) |  | (2) |
| At 31 Dec 2024 | 359679 | 20881 | 1120 | 3 | 381683 | (128) | (126) | (101) |  | (355) |

---

1Included in loans and other credit-related commitments and financial guarantees is $95bn (31 December 2024: $49bn) relating to unsettled reverse repurchase

agreements, which once drawn are classified as 'Reverse repurchase agreements – non-trading'.

2The shift of 'nominal amount' between stage 1 and 2 arose mainly in Asia from higher average PD for the remaining term at the reporting date, reflecting

updates to our PD models and ongoing market challenges. PDs at the reporting date were compared with the PD calculated at origination.

Commercial real estate

Commercial real estate ('CRE') lending includes the financing of

corporate, institutional and high net worth customers who are

investing primarily in income-producing assets and, to a lesser extent,

in their construction and development. The portfolio is globally

diversified with larger concentrations in Hong Kong, the UK, mainland

China and the US.

Our global exposure is centred largely on cities with economic,

political or cultural significance. In more developed markets, our

exposure mainly comprises the financing of investment assets, the

redevelopment of existing stock and the augmentation of both

commercial and residential markets to support economic and

population growth. In less developed commercial real estate markets,

our exposures comprise lending for development assets on relatively

short tenors with a particular focus on supporting larger, better

capitalised developers involved in residential construction or assets

supporting economic expansion.

Excluding favourable foreign exchange movements of $2.0bn,

commercial real estate lending decreased by $0.9bn, mainly in our

entities in Asia (down $1bn) due to loan repayments.

In the tables below, we have disclosed additional information related

to exposures booked in Hong Kong excluding exposures to mainland

China borrowers by stage and credit quality. These exposures mostly

comprise lending to Hong Kong borrowers and, to a lesser degree,

borrowers overseas.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Commercial real estate lending to customers | Commercial real estate lending to customers | Commercial real estate lending to customers | Commercial real estate lending to customers | Commercial real estate lending to customers | Commercial real estate lending to customers | Commercial real estate lending to customers | Commercial real estate lending to customers | Commercial real estate lending to customers | Commercial real estate lending to customers | Commercial real estate lending to customers |  |
|  |  |  |  |  |  |  |  |  | **of which:** | **of which:** | **of which:** |
|  | **HSBC UK** <br>**Bank plc**<br>| **HSBC** <br>**Bank plc**<br>| **The Hongkong** <br>**and Shanghai** <br>**Banking** <br>**Corporation** <br>**Limited**<br>| **HSBC Bank** <br>**Middle East** <br>**Limited**<br>| **HSBC North** <br>**America** <br>**Holdings Inc.**<br>| **Grupo** <br>**Financiero** <br>**HSBC, S.A.** <br>**de C.V.**<br>| **Other** <br>**trading** <br>**entities**<br>| **Total** | **UK** | **Hong** <br>**Kong**<br>| **of which:** <br>**Hong Kong** <br>**excluding** <br>**exposure to** <br>**mainland** <br>**China** <br>**borrowers**<br>|
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| **Gross loans and** <br>**advances**<br>|  |  |  |  |  |  |  |  |  |  |  |
| Stage 1 | **13506** | **3513** | **21561** | **998** | **1061** | **468** | **44** | **41151** | **13991** | **9389** | **8635** |
| Stage 2 | **1982** | **238** | **20583** | **118** | **1138** | **70** | **—** | **24129** | **2012** | **18713** | **18142** |
| Stage 3 | **439** | **301** | **6861** | **90** | **331** | **24** | **25** | **8071** | **438** | **6390** | **5141** |
| POCI | **—** | **53** | **18** | **—** | **—** | **—** | **—** | **71** | **53** | **18** | **—** |
| **At 30 Jun 2025**<sup>1</sup> | **15927** | **4105** | **49023** | **1206** | **2530** | **562** | **69** | **73422** | **16494** | **34510** | **31918** |
| – of which: <br>forborne loans<br>| **439** | **90** | **3080** | **90** | **267** | **46** | **26** | **4038** | **492** | **2729** |  |
| Allowance for <br>ECL<br>| **(191)** | **(97)** | **(1973)** | **(25)** | **(136)** | **(11)** | **(23)** | **(2456)** | **(217)** | **(1725)** | **(877)** |

---

1The shift of 'gross carrying amount' between stage 1 and 2 arose mainly in Asia from higher average PD for the remaining term at the reporting date, reflecting

updates to our PD models and ongoing market challenges. PDs at the reporting date were compared with the PD calculated at origination.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **63** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Commercial real estate lending to customers (continued) | Commercial real estate lending to customers (continued) | Commercial real estate lending to customers (continued) | Commercial real estate lending to customers (continued) | Commercial real estate lending to customers (continued) | Commercial real estate lending to customers (continued) | Commercial real estate lending to customers (continued) | Commercial real estate lending to customers (continued) | Commercial real estate lending to customers (continued) | Commercial real estate lending to customers (continued) | Commercial real estate lending to customers (continued) |  |
|  |  |  |  |  |  |  |  |  | of which: | of which: | of which: |
|  | HSBC UK <br>Bank plc<br>| HSBC <br>Bank plc<br>| The Hongkong <br>and Shanghai <br>Banking <br>Corporation <br>Limited<br>| HSBC Bank <br>Middle East <br>Limited<br>| HSBC North <br>America <br>Holdings Inc.<br>| Grupo <br>Financiero <br>HSBC, S.A. <br>de C.V.<br>| Other <br>trading <br>entities<br>| Total | UK | Hong <br>Kong<br>| of which: <br>Hong Kong <br>excluding <br>exposure to <br>mainland <br>China <br>borrowers<br>|
|  | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m |
| Gross loans and <br>advances<br>|  |  |  |  |  |  |  |  |  |  |  |
| Stage 1 | 9394 | 3285 | 34337 | 1136 | 1420 | 380 | 42 | 49994 | 9758 | 22643 | 22132 |
| Stage 2 | 4052 | 313 | 9103 |  | 1184 | 67 | 1 | 14720 | 4112 | 7619 | 6515 |
| Stage 3 | 492 | 213 | 6451 | 117 | 240 | 22 | 23 | 7558 | 492 | 5967 | 4554 |
| POCI |  | 43 | 18 |  |  |  |  | 61 | 43 | 18 |  |
| At 31 Dec 2024 | 13938 | 3854 | 49909 | 1253 | 2844 | 469 | 66 | 72333 | 14405 | 36247 | 33201 |
| – of which: <br>forborne loans<br>| 502 | 54 | 3087 | 116 | 273 | 19 | 23 | 4074 | 545 | 2729 |  |
| Allowance for ECL | (203) | (72) | (1627) | (23) | (103) | (8) | (19) | (2055) | (227) | (1418) | (405) |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Commercial real estate gross loans and advances to customers by credit quality | Commercial real estate gross loans and advances to customers by credit quality | Commercial real estate gross loans and advances to customers by credit quality | Commercial real estate gross loans and advances to customers by credit quality | Commercial real estate gross loans and advances to customers by credit quality | Commercial real estate gross loans and advances to customers by credit quality | Commercial real estate gross loans and advances to customers by credit quality | Commercial real estate gross loans and advances to customers by credit quality | Commercial real estate gross loans and advances to customers by credit quality | Commercial real estate gross loans and advances to customers by credit quality | Commercial real estate gross loans and advances to customers by credit quality |  |
|  |  |  |  |  |  |  |  |  | **of which:** | **of which:** | **of which:** |
|  | **HSBC UK** <br>**Bank plc**<br>| **HSBC** <br>**Bank plc**<br>| **The Hongkong** <br>**and Shanghai** <br>**Banking** <br>**Corporation** <br>**Limited**<br>| **HSBC Bank** <br>**Middle East** <br>**Limited**<br>| **HSBC North** <br>**America** <br>**Holdings Inc.**<br>| **Grupo** <br>**Financiero** <br>**HSBC, S.A.** <br>**de C.V.**<br>| **Other** <br>**trading** <br>**entities**<br>| **Total** | **UK** | **Hong** <br>**Kong**<br>| **of which:** <br>**Hong Kong** <br>**excluding** <br>**exposure to** <br>**mainland** <br>**China** <br>**borrowers**<br>|
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| Strong | **4873** | **695** | **8812** | **38** | **—** | **5** | **44** | **14467** | **5004** | **4045** | **3968** |
| Good | **3740** | **1578** | **15715** | **545** | **506** | **222** | **—** | **22306** | **3793** | **9533** | **9124** |
| Satisfactory | **6022** | **1317** | **13230** | **498** | **1114** | **278** | **—** | **22459** | **6325** | **10471** | **10330** |
| Sub-standard | **853** | **161** | **4387** | **35** | **579** | **33** | **—** | **6048** | **881** | **4053** | **3355** |
| Credit impaired | **439** | **354** | **6879** | **90** | **331** | **24** | **25** | **8142** | **491** | **6408** | **5141** |
| **At 30 Jun 2025** | **15927** | **4105** | **49023** | **1206** | **2530** | **562** | **69** | **73422** | **16494** | **34510** | **31918** |
| Strong | 4663 | 739 | 9106 | 137 |  | 18 | 42 | 14705 | 4875 | 4522 | 4484 |
| Good | 2098 | 1430 | 16113 | 407 | 566 | 111 |  | 20725 | 2107 | 10421 | 9754 |
| Satisfactory | 5770 | 1312 | 13556 | 592 | 1423 | 283 |  | 22936 | 5948 | 10850 | 10716 |
| Sub-standard | 915 | 117 | 4665 |  | 615 | 35 | 1 | 6348 | 940 | 4469 | 3693 |
| Credit impaired | 492 | 256 | 6469 | 117 | 240 | 22 | 23 | 7619 | 535 | 5985 | 4554 |
| At 31 Dec 2024 | 13938 | 3854 | 49909 | 1253 | 2844 | 469 | 66 | 72333 | 14405 | 36247 | 33201 |

---

The Hong Kong CRE portfolio (excluding exposure to mainland China

borrowers) saw further negative migration in the first half of 2025 as a

result of ongoing market challenges. This was predominantly driven

by a continued deterioration in the secured book, which accounts for

58% of the total portfolio (31 December 2024: 54%).

'Sub-standard' and 'credit impaired' exposures increased to $8.5bn

(31 December 2024: $8.2bn), of which 94% was secured

(31 December 2024: 92%). As at 30 June 2025, the weighted average

loan to value ('LTV'):

–of performing exposures rated 'sub-standard' was 45%

(31 December 2024: 46%). There is immaterial exposure with an

LTV of greater than 70% (31 December 2024: $1.2bn);

–of 'credit impaired' exposures was 67% (31 December 2024:

58%). Within this portfolio, $1.4bn has an LTV of greater than 70%

(31 December 2024: $1.2bn).

Collateral information and LTV calculation is based on total limits,

inclusive of off-balance sheet commitments, of $43.9bn as of 30 June

2025 (31 December 2024: $49.2bn).

The unsecured portfolio remained stable in size and quality, with

limited 'credit impaired' levels and 93% rated 'strong' or

'good' (31 December 2024: 93%). Unsecured exposures are typically

granted to strong, listed Hong Kong CRE developers, which

commonly are members of conglomerate groups with diverse cash

flows.

The market conditions are expected to remain challenging overall

although the residential property market has benefited from the

relaxation of government restrictions, with a continued stabilisation in

transaction levels observed since 2024. Commercial property

nevertheless faces continued downward pressure as over-supply

continues to negatively impact both rents and capital values. Collateral

buffers decrease as valuations are updated in line with our existing

practice. This resulted in higher levels of ECL allowances in the first

half of 2025, particularly in the 'credit impaired' portfolio. ECL

allowances were also driven by a combination of continued negative

migration and impact from model changes. While the recent reduction

in HIBOR should provide short-term liquidity and debt serviceability

relief to borrowers operating in this sector, property price pressure is

likely to persist until economic conditions and sentiment improve.

Further credit migration is, therefore, expected in the second half of

2025. We continue to closely assess and manage the risk in the portfolio,

including through portfolio reviews and stress testing. Vulnerable

borrowers, including those with debt serviceability challenges and

higher LTV levels, are subject to heightened monitoring and

management.

Refinance risk in commercial real estate

Commercial real estate lending tends to require the repayment of a

significant proportion of the principal at maturity. Typically, a customer

will arrange repayment through the acquisition of a new loan to settle

the existing debt.

Refinance risk is the risk that a customer, being unable to repay the

debt on maturity, fails to refinance it at commercial terms. We

monitor our commercial real estate portfolio closely, assessing

indicators for signs of potential issues with refinancing.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **64** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Commercial real estate gross loans and advances to customers maturity analysis | Commercial real estate gross loans and advances to customers maturity analysis | Commercial real estate gross loans and advances to customers maturity analysis | Commercial real estate gross loans and advances to customers maturity analysis | Commercial real estate gross loans and advances to customers maturity analysis | Commercial real estate gross loans and advances to customers maturity analysis | Commercial real estate gross loans and advances to customers maturity analysis | Commercial real estate gross loans and advances to customers maturity analysis | Commercial real estate gross loans and advances to customers maturity analysis | Commercial real estate gross loans and advances to customers maturity analysis | Commercial real estate gross loans and advances to customers maturity analysis |
|  |  |  |  |  |  |  |  |  | **of which:** | **of which:** |
|  | **HSBC UK** <br>**Bank plc**<br>| **HSBC** <br>**Bank plc**<br>| **The Hongkong and** <br>**Shanghai Banking** <br>**Corporation** <br>**Limited**<br>| **HSBC Bank** <br>**Middle East** <br>**Limited**<br>| **HSBC North** <br>**America** <br>**Holdings Inc.**<br>| **Grupo** <br>**Financiero** <br>**HSBC, S.A.** <br>**de C.V.**<br>| **Other** <br>**trading** <br>**entities**<br>| **Total** | **UK**  | **Hong** <br>**Kong**<br>|
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| < 1 year | **4667** | **1235** | **21629** | **464** | **1148** | **100** | **22** | **29265** | **5052** | **16659** |
| 1–2 years | **3357** | **756** | **10867** | **170** | **968** | **198** | **19** | **16335** | **3526** | **7638** |
| 2–5 years | **7267** | **1603** | **14306** | **394** | **403** | **141** | **28** | **24142** | **7276** | **8752** |
| > 5 years | **636** | **511** | **2221** | **178** | **11** | **123** | **—** | **3680** | **640** | **1461** |
| **At 30 Jun 2025** | **15927** | **4105** | **49023** | **1206** | **2530** | **562** | **69** | **73422** | **16494** | **34510** |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| < 1 year | 3488 | 846 | 22244 | 455 | 1084 | 111 | 20 | 28248 | 3826 | 18204 |
| 1–2 years | 3303 | 876 | 11213 | 162 | 603 | 142 | 6 | 16305 | 3373 | 7196 |
| 2–5 years | 6634 | 1600 | 14079 | 447 | 1145 | 143 | 40 | 24088 | 6685 | 9254 |
| > 5 years | 513 | 532 | 2373 | 189 | 12 | 73 |  | 3692 | 521 | 1593 |
| At 31 Dec 2024 | 13938 | 3854 | 49909 | 1253 | 2844 | 469 | 66 | 72333 | 14405 | 36247 |

---

The following table presents the Group's exposure to borrowers

classified in the commercial real estate sector where the ultimate

parent is based in mainland China, as well as all commercial real

estate exposures booked on mainland China balance sheets. In

addition to CRE as defined in our primary CRE disclosure above, this

table includes financing provided to a corporate or financial entity for

the purchase or financing of a property that supports the overall

operations of the business. This provides a more comprehensive view

of our mainland China CRE exposures. The exposures at 30 June

2025 are split by country/territory and credit quality including

allowances for ECL by stage.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Mainland China commercial real estate | Mainland China commercial real estate | Mainland China commercial real estate | Mainland China commercial real estate | Mainland China commercial real estate |  |  |  |  |
|  | **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 |
|  | **Hong** <br>**Kong**<br>| **Mainland** <br>**China**<br>| **Rest of the** <br>**Group**<br>| **Total** | Hong <br>Kong<br>| Mainland <br>China<br>| Rest of the <br>Group<br>| Total |
|  | **$m** | **$m** | **$m** | **$m** | $m | $m | $m | $m |
| Loans and advances to customers<sup>1</sup> | **2900** | **3598** | **203** | **6701** | 3161 | 3694 | 303 | 7158 |
| Guarantees issued and others<sup>2</sup> | **88** | **12** | **14** | **114** | 80 | 16 | 5 | 101 |
| **Total mainland China commercial real estate** <br>**exposure**<br>| **2988** | **3610** | **217** | **6815** | 3241 | 3710 | 308 | 7259 |
| **Distribution of mainland China commercial real** <br>**estate exposure by credit quality**<br>|  |  |  |  |  |  |  |  |
| Strong | **261** | **2009** | **77** | **2347** | 118 | 1817 | 109 | 2044 |
| Good | **434** | **484** | **74** | **992** | 578 | 595 | 1 | 1174 |
| Satisfactory | **171** | **618** | **64** | **853** | 196 | 899 | 49 | 1144 |
| Sub-standard | **701** | **239** | **1** | **941** | 777 | 136 | 149 | 1062 |
| Credit impaired | **1421** | **260** | **1** | **1682** | 1572 | 263 |  | 1835 |
| **Total** | **2988** | **3610** | **217** | **6815** | 3241 | 3710 | 308 | 7259 |
| **Allowance for ECL by credit quality** |  |  |  |  |  |  |  |  |
| Strong | **—** | **(5)** | **—** | **(5)** |  | (4) |  | (4) |
| Good | **(1)** | **(3)** | **—** | **(4)** |  | (3) |  | (3) |
| Satisfactory | **—** | **(9)** | **—** | **(9)** |  | (13) |  | (13) |
| Sub-standard | **(158)** | **(74)** | **—** | **(232)** | (261) | (30) | (17) | (308) |
| Credit impaired | **(692)** | **(89)** | **—** | **(781)** | (749) | (81) |  | (830) |
| **Total** | **(851)** | **(180)** | **—** | **(1031)** | (1010) | (131) | (17) | (1158) |
| **Allowance for ECL by stage distribution** |  |  |  |  |  |  |  |  |
| Stage 1 | **—** | **(8)** | **—** | **(8)** |  | (9) |  | (9) |
| Stage 2 | **(159)** | **(83)** | **—** | **(242)** | (261) | (41) | (17) | (319) |
| Stage 3 | **(684)** | **(88)** | **—** | **(772)** | (743) | (81) |  | (824) |
| POCI | **(9)** | **—** | **—** | **(9)** | (6) |  |  | (6) |
| **Total** | **(852)** | **(179)** | **—** | **(1031)** | (1010) | (131) | (17) | (1158) |
| **ECL coverage %** | **28.5** | **5.0** | **—** | **15.1** | 31.2 | 3.5 | 5.5 | 16.0 |

---

1Amounts represent gross carrying amount.

2Amounts represent nominal amount for guarantees and other contingent liabilities.

The mainland China commercial real estate portfolio continues to face

challenges as market fundamentals remain weak with heightened

refinancing risk. The portfolio of loans booked in Hong Kong remains

impacted by these challenges but continues to reduce due to

repayments and write-offs. ECL allowances are primarily held against

unsecured exposures, but are broadly stable.

Approximately 60% of the performing exposure in the mainland China

CRE portfolio booked in Hong Kong is lending to state-owned

enterprises and relatively strong privately-owned enterprises. This is

reflected in the relatively low allowances for ECL in this part of the

portfolio.

The onshore portfolio booked in mainland China remains of higher

credit quality, with lower ECL allowances reflecting collateral held.

The portfolio continues to rebalance in favour of Strong-rated

borrowers.

Market conditions nevertheless remain weak. Government stimulus

measures have not yet triggered a meaningful recovery in underlying

demand for housing, although some stabilisation has been seen in

certain cities. Financing conditions and liquidity for borrowers

operating in the real estate sector therefore remains constrained,

particularly for privately-owned enterprises. A full recovery is likely to

be protracted and dependent on a sustained improvement in

underlying sentiment, as well as further government support.

The Group has additional exposures to mainland China commercial

real estate as a result of lending to multinational corporates booked

outside of mainland China, which is not incorporated in the table

above.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **65** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

Supplementary information

The following disclosures present wholesale and retail loans and advances to customers at amortised cost by country/territory.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Wholesale lending – loans and advances to customers at amortised cost by country/territory | Wholesale lending – loans and advances to customers at amortised cost by country/territory | Wholesale lending – loans and advances to customers at amortised cost by country/territory | Wholesale lending – loans and advances to customers at amortised cost by country/territory | Wholesale lending – loans and advances to customers at amortised cost by country/territory | Wholesale lending – loans and advances to customers at amortised cost by country/territory | Wholesale lending – loans and advances to customers at amortised cost by country/territory | Wholesale lending – loans and advances to customers at amortised cost by country/territory | Wholesale lending – loans and advances to customers at amortised cost by country/territory |
|  | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** |
|  | **Corporate** <br>**and** <br>**commercial**<br>| **of which: real** <br>**estate and** <br>**construction**<sup>1</sup><br>| **Non-bank** <br>**financial** <br>**institutions**<br>| **Total** | **Corporate** <br>**and** <br>**commercial**<br>| **of which: real** <br>**estate and** <br>**construction**<sup>1</sup><br>| **Non-bank** <br>**financial** <br>**institutions**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| UK | **113720** | **20293** | **23865** | **137585** | **(1349)** | **(272)** | **(62)** | **(1411)** |
| – of which: HSBC UK Bank plc (ring-<br>fenced bank)<br>| **90555** | **19272** | **11263** | **101818** | **(1203)** | **(244)** | **(24)** | **(1227)** |
| – of which: HSBC Bank plc (non-<br>ring-fenced bank)<br>| **23165** | **1021** | **12602** | **35767** | **(146)** | **(28)** | **(38)** | **(184)** |
| France | **28037** | **4323** | **10599** | **38636** | **(303)** | **(73)** | **(13)** | **(316)** |
| Germany | **6614** | **351** | **298** | **6912** | **(188)** | ***—*** | **—** | **(188)** |
| Hong Kong | **118236** | **39968** | **17636** | **135872** | **(3115)** | **(1819)** | **(112)** | **(3227)** |
| Australia | **13356** | **4857** | **4165** | **17521** | **(37)** | **(4)** | **—** | **(37)** |
| India | **13529** | **2435** | **7484** | **21013** | **(62)** | **(6)** | **(11)** | **(73)** |
| Indonesia | **3656** | **159** | **568** | **4224** | **(66)** | **—** | **(1)** | **(67)** |
| Mainland China | **28023** | **5383** | **8988** | **37011** | **(268)** | **(167)** | **(7)** | **(275)** |
| Malaysia | **5683** | **1238** | **230** | **5913** | **(39)** | **(10)** | **—** | **(39)** |
| Singapore | **17327** | **3407** | **2390** | **19717** | **(197)** | **(56)** | **(2)** | **(199)** |
| Taiwan | **3943** | **19** | **—** | **3943** | **(1)** | **—** | **—** | **(1)** |
| Egypt | **821** | **37** | **37** | **858** | **(118)** | **(24)** | **—** | **(118)** |
| UAE | **14320** | **1717** | **1913** | **16233** | **(443)** | **(321)** | **(1)** | **(444)** |
| US | **25934** | **4128** | **9277** | **35211** | **(333)** | **(141)** | **(29)** | **(362)** |
| Mexico | **11245** | **708** | **1333** | **12578** | **(236)** | **(30)** | **(17)** | **(253)** |
| Other | **27824** | **3055** | **1859** | **29683** | **(384)** | **(142)** | **(9)** | **(393)** |
| **At 30 Jun 2025** | **432268** | **92078** | **90642** | **522910** | **(7139)** | **(3065)** | **(264)** | **(7403)** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| UK  | 102245 | 17540 | 21771 | 124016 | (1412) | (289) | (234) | (1646) |
| – of which: HSBC UK Bank plc (ring-<br>fenced bank)<br>| 79833 | 16722 | 10268 | 90101 | (1146) | (260) | (54) | (1200) |
| – of which: HSBC Bank plc (non-ring-<br>fenced bank)<br>| 22412 | 818 | 11503 | 33915 | (266) | (29) | (180) | (446) |
| France | 25950 | 3986 | 7222 | 33172 | (257) | (42) | (9) | (266) |
| Germany | 6256 | 264 | 421 | 6677 | (153) |  |  | (153) |
| Hong Kong | 118332 | 42042 | 17846 | 136178 | (2922) | (1494) | (112) | (3034) |
| Australia | 12532 | 4509 | 2931 | 15463 | (30) | (3) |  | (30) |
| India | 12540 | 2581 | 6425 | 18965 | (45) | (5) | (6) | (51) |
| Indonesia | 3132 | 184 | 356 | 3488 | (109) | (44) |  | (109) |
| Mainland China | 29930 | 5326 | 8044 | 37974 | (222) | (117) | (6) | (228) |
| Malaysia | 5773 | 1067 | 278 | 6051 | (40) | (10) |  | (40) |
| Singapore | 17267 | 3266 | 1830 | 19097 | (234) | (80) | (1) | (235) |
| Taiwan | 3848 | 60 |  | 3848 |  |  |  |  |
| Egypt | 777 | 32 | 51 | 828 | (115) | (20) |  | (115) |
| UAE | 13278 | 1809 | 1589 | 14867 | (408) | (258) |  | (408) |
| US | 24084 | 4028 | 10348 | 34432 | (246) | (106) | (47) | (293) |
| Mexico | 10318 | 525 | 1407 | 11725 | (201) | (9) | (11) | (212) |
| Other | 24422 | 2844 | 1945 | 26367 | (361) | (121) | (10) | (371) |
| At 31 Dec 2024 | 410684 | 90063 | 82464 | 493148 | (6755) | (2598) | (436) | (7191) |

---

1Real estate lending within this disclosure corresponds solely to the industry of the borrower. 'Commercial real estate' on page [62](#i3aacb9d6d5d149b59e70a508ca79dc34_343) includes borrowers in multiple

industries investing in income-producing assets and, to a lesser extent, their construction and development.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **66** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Personal lending – loans and advances to customers at amortised cost by country/territory | Personal lending – loans and advances to customers at amortised cost by country/territory | Personal lending – loans and advances to customers at amortised cost by country/territory | Personal lending – loans and advances to customers at amortised cost by country/territory | Personal lending – loans and advances to customers at amortised cost by country/territory | Personal lending – loans and advances to customers at amortised cost by country/territory | Personal lending – loans and advances to customers at amortised cost by country/territory | Personal lending – loans and advances to customers at amortised cost by country/territory | Personal lending – loans and advances to customers at amortised cost by country/territory |
|  | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Gross carrying amount** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** | **Allowance for ECL** |
|  | **First lien** <br>**residential** <br>**mortgages**<br>| **Other** <br>**personal**<br>| **of which:** <br>**credit cards**<br>| **Total** | **First lien** <br>**residential** <br>**mortgages**<br>| **Other** <br>**personal**<br>| **of which:** <br>**credit cards**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| UK | **190011** | **24041** | **8820** | **214052** | **(165)** | **(654)** | **(335)** | **(819)** |
| – of which: HSBC UK Bank plc (ring-fenced <br>bank)<br>| **185564** | **20288** | **8728** | **205852** | **(156)** | **(624)** | **(334)** | **(780)** |
| – of which: HSBC Bank plc (non-ring-fenced <br>bank)<br>| **4447** | **3753** | **92** | **8200** | **(9)** | **(30)** | **(1)** | **(39)** |
| France | **24** | **8** | **—** | **32** | **(12)** | **(7)** | **—** | **(19)** |
| Hong Kong | **106563** | **32883** | **9012** | **139446** | **(6)** | **(420)** | **(287)** | **(426)** |
| Australia | **24141** | **462** | **427** | **24603** | **(9)** | **(9)** | **(9)** | **(18)** |
| India | **2243** | **957** | **314** | **3200** | **(3)** | **(21)** | **(18)** | **(24)** |
| Indonesia | **41** | **241** | **155** | **282** | **(2)** | **(12)** | **(6)** | **(14)** |
| Mainland China | **5727** | **618** | **186** | **6345** | **(15)** | **(35)** | **(28)** | **(50)** |
| Malaysia | **3415** | **1272** | **1002** | **4687** | **(20)** | **(66)** | **(39)** | **(86)** |
| Singapore | **6025** | **7290** | **625** | **13315** | **—** | **(65)** | **(33)** | **(65)** |
| Taiwan | **6819** | **1618** | **417** | **8437** | **—** | **(16)** | **(5)** | **(16)** |
| Egypt | **—** | **361** | **99** | **361** | **—** | **(2)** | **(1)** | **(2)** |
| UAE | **2244** | **1395** | **559** | **3639** | **(4)** | **(56)** | **(34)** | **(60)** |
| US | **21827** | **638** | **177** | **22465** | **(13)** | **(15)** | **(13)** | **(28)** |
| Mexico | **8148** | **5560** | **2374** | **13708** | **(189)** | **(772)** | **(386)** | **(961)** |
| Other | **6971** | **7412** | **756** | **14383** | **(78)** | **(74)** | **(36)** | **(152)** |
| **At 30 Jun 2025** | **384199** | **84756** | **24923** | **468955** | **(516)** | **(2224)** | **(1230)** | **(2740)** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| UK | 170809 | 21426 | 8016 | 192235 | (139) | (540) | (284) | (679) |
| – of which: HSBC UK Bank plc (ring-fenced <br>bank)<br>| 166709 | 18029 | 7933 | 184738 | (132) | (534) | (283) | (666) |
| – of which: HSBC Bank plc (non-ring-fenced <br>bank)<br>| 4100 | 3397 | 83 | 7497 | (7) | (6) | (1) | (13) |
| France | 377 | 6601 | 1 | 6978 | (12) | (12) |  | (24) |
| Hong Kong | 107759 | 31676 | 10165 | 139435 | (5) | (421) | (291) | (426) |
| Australia | 22154 | 407 | 372 | 22561 | (7) | (9) | (8) | (16) |
| India | 1984 | 865 | 265 | 2849 | (3) | (18) | (14) | (21) |
| Indonesia | 46 | 323 | 142 | 369 | (3) | (11) | (6) | (14) |
| Mainland China | 6087 | 771 | 227 | 6858 | (12) | (42) | (33) | (54) |
| Malaysia | 3252 | 1198 | 938 | 4450 | (23) | (62) | (36) | (85) |
| Singapore | 5802 | 6653 | 571 | 12455 |  | (56) | (28) | (56) |
| Taiwan | 5788 | 1424 | 340 | 7212 |  | (15) | (4) | (15) |
| Egypt |  | 321 | 89 | 321 |  | (1) |  | (1) |
| UAE | 2082 | 1338 | 543 | 3420 | (3) | (55) | (31) | (58) |
| US | 21021 | 653 | 195 | 21674 | (12) | (16) | (14) | (28) |
| Mexico | 7488 | 5320 | 2242 | 12808 | (167) | (719) | (339) | (886) |
| Other | 6681 | 6919 | 809 | 13600 | (87) | (74) | (39) | (161) |
| At 31 Dec 2024 | 361330 | 85895 | 24915 | 447225 | (473) | (2051) | (1127) | (2524) |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **67** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

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 an 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

–The Group 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 macro

environment and global markets during the first half of the year.

–See page 16 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>[67](#i3aacb9d6d5d149b59e70a508ca79dc34_376)</u> to <u>[69](#iada34440901746d29e9f042633292a00_72428)</u>. For quantitative disclosures on liquidity and funding metrics,

see pages <u>[70](#i3aacb9d6d5d149b59e70a508ca79dc34_397)</u> to <u>[71](#i181351ccd8904518990aa91aabed40b6_18-0-1-1-8309417)</u>. For quantitative disclosures on interest rate risk in the

banking book, see pages <u>[71](#i3aacb9d6d5d149b59e70a508ca79dc34_412)</u> to <u>[72](#i3aacb9d6d5d149b59e70a508ca79dc34_427)</u>.

Capital, liquidity and funding risk

management processes

A summary of our risk management approach and processes is set

out on pages 200 to 203 of our Annual Report and Accounts 2024.

HSBC Holdings is the provider of minimum requirement for own

funds and eligible liabilities ('MREL') to its subsidiaries, including

equity and non-equity capital. These investments are funded by HSBC

Holdings' own equity capital and MREL-eligible debt. HSBC Holdings

seeks to maintain a prudent balance between the composition of its

capital and its investments in subsidiaries.

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.

As a matter of long-standing policy, HSBC Holdings retains a

substantial holdings capital buffer comprising cash and other high-

quality liquid assets, which we seek to manage within our target

operating range of $19bn to $24bn.

For a description of our resolution groups and approach to stress

testing and resolution planning, see pages 201 and 202 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 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 202 of our Annual Report and Accounts 2024.

🡠For further details, see the 'Economic value of equity and net interest

income sensitivity' section in our Pillar 3 Disclosures at 30 June 2025, which

is expected to be published on or around 6 August 2025, at www.hsbc.com/

investors.

Capital risk in the first half of 2025

Capital overview

---

| | | |
|:---|:---|:---|
| Capital and liquidity adequacy metrics | Capital and liquidity adequacy metrics | Capital and liquidity adequacy metrics |
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
| **Risk-weighted assets ('RWAs') ($bn)** |  |  |
| Credit risk | **703.6** | 657.9 |
| Counterparty credit risk | **41.4** | 37.7 |
| Market risk | **32.5** | 36.2 |
| Operational risk | **109.4** | 106.5 |
| **Total RWAs** | **886.9** | 838.3 |
| **Capital on a transitional basis ($bn)** |  |  |
| Common equity tier 1 capital | **129.8** | 124.9 |
| Tier 1 capital | **150.6** | 144.1 |
| Total capital | **178.5** | 172.4 |
| **Capital ratios on a transitional basis (%)** |  |  |
| Common equity tier 1 ratio | **14.6** | 14.9 |
| Tier 1 ratio | **17.0** | 17.2 |
| Total capital ratio | **20.1** | 20.6 |
| **Capital on an end point basis ($bn)** |  |  |
| Common equity tier 1 capital | **129.8** | 124.9 |
| Tier 1 capital | **150.6** | 144.1 |
| Total capital | **178.5** | 168.5 |
| **Capital ratios on an end point basis (%)** |  |  |
| Common equity tier 1 ratio | **14.6** | 14.9 |
| Tier 1 ratio | **17.0** | 17.2 |
| Total capital ratio | **20.1** | 20.1 |
| **Liquidity coverage ratio ('LCR')** |  |  |
| Total high-quality liquid assets ($bn) | **678.1** | 649.2 |
| Total net cash outflow ($bn) | **485.5** | 470.7 |
| **LCR (%)** | **140** | 138 |

---

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.

The liquidity coverage ratio is based on the average value of the

preceding 12 months.

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.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **68** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

Own funds

---

| | | | |
|:---|:---|:---|:---|
| Own funds disclosure | Own funds disclosure | Own funds disclosure | Own funds disclosure |
|  |  | **30 Jun 2025** | 31 Dec 2024 |
| Ref<sup>\*</sup> |  | **$m** | $m |
| 6 | Common equity tier 1 capital before regulatory adjustments | **170986** | 164071 |
| 28 | Total regulatory adjustments to common equity tier 1 | **(41167)** | (39160) |
| 29 | **Common equity tier 1 capital**  | **129819** | 124911 |
| 36 | Additional tier 1 capital before regulatory adjustments  | **20870** | 19286 |
| 43 | Total regulatory adjustments to additional tier 1 capital  | **(70)** | (70) |
| 44 | **Additional tier 1 capital** | **20800** | 19216 |
| 45 | **Tier 1 capital** | **150619** | 144127 |
| 51 | Tier 2 capital before regulatory adjustments  | **29220** | 29334 |
| 57 | Total regulatory adjustments to tier 2 capital  | **(1343)** | (1075) |
| 58 | **Tier 2 capital**  | **27877** | 28259 |
| 59 | **Total capital** | **178496** | 172386 |
|  | **Capital ratios** | **%** | % |
| 61 | Common equity tier 1 ratio | **14.6** | 14.9 |
| 62 | Tier 1 ratio  | **17.0** | 17.2 |
| 63 | **Total capital ratio**  | **20.1** | 20.6 |

---

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

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

decreased to 14.6% from 14.9% at 31 December 2024, driven by an

increase in RWAs of $48.6bn, partly offset by an increase in CET1

capital of $4.9bn. The overall decrease in our CET1 ratio during the

period was primarily contributed by:

–a 0.4 percentage point decrease driven by higher RWAs mainly

from asset size movements;

–a 0.2 percentage point net decrease from strategic transactions;

–a 0.1 percentage point decrease from regulatory deductions, partly

offset by the FVOCI reserve and other movements;

–a 0.2 percentage point increase from capital generation, mainly

through regulatory profits less dividends, adjusted for the share

buy-backs announced along with our 4Q24 and 1Q25 results; and

–a 0.1 percentage point increase from the favourable impact of

foreign exchange fluctuations.

At 30 June 2025, our Pillar 2A requirement, set by the PRA's

Individual Capital Requirement based on a point-in-time assessment,

was equivalent to 2.6% of RWAs, of which 1.5% was met by CET1

capital. Throughout the first half of 2025, we complied with the PRA's

regulatory capital adequacy requirements.

Risk-weighted assets

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| RWAs by business segment | RWAs by business segment | RWAs by business segment | RWAs by business segment | RWAs by business segment | RWAs by business segment | RWAs by business segment |
|  | **Hong** <br>**Kong** <br>| **UK** | **CIB** | **IWPB** | **Corporate** <br>**Centre**<br>| **Total** <br>**RWAs**<br>|
|  | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** |
| Credit risk | **118.6** | **132.0** | **291.7** | **74.1** | **87.2** | **703.6** |
| Counterparty credit risk | **0.1** | **0.1** | **39.3** | **0.7** | **1.2** | **41.4** |
| Market risk | **0.1** | **—** | **25.1** | **0.5** | **6.8** | **32.5** |
| Operational risk | **21.8** | **20.9** | **55.1** | **15.7** | **(4.1)** | **109.4** |
| **At 30 Jun 2025** | **140.6** | **153.0** | **411.2** | **91.0** | **91.1** | **886.9** |
| At 31 Dec 2024 | 143.7 | 133.5 | 388.0 | 85.7 | 87.4 | 838.3 |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| RWAs by legal entities<sup>1</sup> | RWAs by legal entities<sup>1</sup> | RWAs by legal entities<sup>1</sup> | RWAs by legal entities<sup>1</sup> | RWAs by legal entities<sup>1</sup> | RWAs by legal entities<sup>1</sup> | RWAs by legal entities<sup>1</sup> | RWAs by legal entities<sup>1</sup> | RWAs by legal entities<sup>1</sup> | RWAs by legal entities<sup>1</sup> |
|  | **HSBC UK** <br>**Bank plc**<br>| **HSBC** <br>**Bank plc**<br>| **The Hongkong** <br>**and Shanghai** <br>**Banking** <br>**Corporation** <br>**Limited**<br>| **HSBC** <br>**Bank** <br>**Middle** <br>**East** <br>**Limited**<br>| **HSBC** <br>**North** <br>**America** <br>**Holdings** <br>**Inc**<br>| **Grupo** <br>**Financiero** <br>**HSBC, S.A.**<br>**de C.V.**<br>| **Other** <br>**trading** <br>**entities**<br>| **Holding** <br>**companies,** <br>**shared service** <br>**centres and** <br>**intra-Group** <br>**eliminations**<br>| **Total** <br>**RWAs**<br>|
|  | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** |
| Credit risk | **134.9** | **81.9** | **322.6** | **18.9** | **62.7** | **25.9** | **45.6** | **11.1** | **703.6** |
| Counterparty credit risk | **0.4** | **22.2** | **11.6** | **0.7** | **3.9** | **0.8** | **1.8** | **—** | **41.4** |
| Market risk<sup>2</sup> | **0.2** | **22.1** | **27.4** | **1.4** | **3.1** | **0.7** | **1.2** | **2.1** | **32.5** |
| Operational risk<sup>3</sup> | **22.5** | **21.6** | **55.2** | **4.6** | **7.7** | **5.3** | **4.8** | **(12.3)** | **109.4** |
| **At 30 Jun 2025** | **158.0** | **147.8** | **416.8** | **25.6** | **77.4** | **32.7** | **53.4** | **0.9** | **886.9** |
| At 31 Dec 2024 | 138.3 | 137.6 | 402.8 | 26.6 | 74.4 | 29.7 | 50.7 | (0.6) | 838.3 |

---

1Balances are on a third-party Group consolidated basis.

2Market risk RWAs are non-additive across the legal entities due to diversification effects within the Group.

3 Following the receipt of a PRA waiver in 2025, operational risk RWAs are excluded for the disposal of our business in Argentina and the sale of our retail banking

operations in France.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **69** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| RWA movement by legal entities by key driver<sup>1</sup> | RWA movement by legal entities by key driver<sup>1</sup> | RWA movement by legal entities by key driver<sup>1</sup> | RWA movement by legal entities by key driver<sup>1</sup> | RWA movement by legal entities by key driver<sup>1</sup> | RWA movement by legal entities by key driver<sup>1</sup> | RWA movement by legal entities by key driver<sup>1</sup> | RWA movement by legal entities by key driver<sup>1</sup> | RWA movement by legal entities by key driver<sup>1</sup> | RWA movement by legal entities by key driver<sup>1</sup> | RWA movement by legal entities by key driver<sup>1</sup> |
|  | **Credit risk, counterparty credit risk and operational risk** | **Credit risk, counterparty credit risk and operational risk** | **Credit risk, counterparty credit risk and operational risk** | **Credit risk, counterparty credit risk and operational risk** | **Credit risk, counterparty credit risk and operational risk** | **Credit risk, counterparty credit risk and operational risk** | **Credit risk, counterparty credit risk and operational risk** | **Credit risk, counterparty credit risk and operational risk** |  |  |
|  | **HSBC UK** <br>**Bank plc**<br>| **HSBC** <br>**Bank plc**<br>| **The Hongkong** <br>**and Shanghai** <br>**Banking** <br>**Corporation** <br>**Limited**<br>| **HSBC** <br>**Bank** <br>**Middle** <br>**East** <br>**Limited**<br>| **HSBC** <br>**North** <br>**America** <br>**Holdings** <br>**Inc**<br>| **Grupo** <br>**Financiero** <br>**HSBC, S.A.**<br>**de C.V.**<br>| **Other** <br>**trading** <br>**entities**<br>| **Holding** <br>**companies,** <br>**shared service** <br>**centres and** <br>**intra-Group** <br>**eliminations**<br>| **Market** <br>**risk**<br>| **Total** <br>**RWAs**<br>|
|  | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** |
| **RWAs at 1 Jan 2025** | **138.1** | **111.5** | **379.8** | **24.5** | **71.7** | **29.2** | **49.4** | **(2.1)** | **36.2** | **838.3** |
| Asset size | **6.9** | **3.6** | **2.5** | **0.1** | **2.7** | **0.2** | **3.8** | **0.2** | **(3.7)** | **16.3** |
| Asset quality | **0.7** | **0.7** | **5.2** | **(0.3)** | **(1.0)** | **—** | **(0.1)** | **—** | **—** | **5.2** |
| Model updates | **—** | **—** | **0.2** | **(0.2)** | **—** | **—** | **—** | **—** | **—** | **—** |
| Methodology and policy  | **(0.2)** | **1.7** | **(2.7)** | **(0.1)** | **0.8** | **0.2** | **0.4** | **1.3** | **—** | **1.4** |
| Acquisitions and disposals | **—** | **(0.5)** | **—** | **—** | **—** | **—** | **(1.5)** | **(1.0)** | **—** | **(3.0)** |
| Foreign exchange movements<sup>2</sup> | **12.3** | **8.7** | **4.4** | **0.2** | **0.1** | **2.4** | **0.2** | **0.4** | **—** | **28.7** |
| **Total RWA movement** | **19.7** | **14.2** | **9.6** | **(0.3)** | **2.6** | **2.8** | **2.8** | **0.9** | **(3.7)** | **48.6** |
| **RWAs at 30 Jun 2025** | **157.8** | **125.7** | **389.4** | **24.2** | **74.3** | **32.0** | **52.2** | **(1.2)** | **32.5** | **886.9** |

---

1Balances are on a third-party Group consolidated basis.

2Credit risk foreign exchange movements in this disclosure are computed by retranslating the RWAs into US dollars based on the underlying transactional

currencies and other movements in the table are presented on a constant currency basis.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| RWA movement by business segment by key driver | RWA movement by business segment by key driver | RWA movement by business segment by key driver | RWA movement by business segment by key driver | RWA movement by business segment by key driver | RWA movement by business segment by key driver | RWA movement by business segment by key driver | RWA movement by business segment by key driver |
|  | **Credit risk, counterparty credit risk and operational risk** | **Credit risk, counterparty credit risk and operational risk** | **Credit risk, counterparty credit risk and operational risk** | **Credit risk, counterparty credit risk and operational risk** | **Credit risk, counterparty credit risk and operational risk** |  |  |
|  | **Hong** <br>**Kong** <br>| **UK** | **CIB** | **IWPB** | **Corporate** <br>**Centre**<br>| **Market** <br>**risk**<br>| **Total** <br>**RWAs**<br>|
|  | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** |
| **RWAs at 1 Jan 2025** | **142.0** | **133.5** | **360.7** | **85.6** | **80.3** | **36.2** | **838.3** |
| Asset size | **(1.0)** | **7.1** | **8.4** | **2.0** | **3.5** | **(3.7)** | **16.3** |
| Asset quality | **2.5** | **0.7** | **2.1** | **(0.3)** | **0.2** | **—** | **5.2** |
| Model updates | **0.1** | **—** | **(0.1)** | **—** | **—** | **—** | **—** |
| Methodology and policy  | **(2.5)** | **(0.4)** | **3.4** | **0.2** | **0.7** | **—** | **1.4** |
| Acquisitions and disposals | **—** | **—** | **(1.0)** | **(0.5)** | **(1.5)** | **—** | **(3.0)** |
| Foreign exchange movements<sup>1</sup> | **(0.6)** | **12.1** | **12.6** | **3.5** | **1.1** | **—** | **28.7** |
| **Total RWA movement** | **(1.5)** | **19.5** | **25.4** | **4.9** | **4.0** | **(3.7)** | **48.6** |
| **RWAs at 30 Jun 2025** | **140.5** | **153.0** | **386.1** | **90.5** | **84.3** | **32.5** | **886.9** |

---

1Credit risk foreign exchange movements in this disclosure are computed by retranslating RWAs into US dollars based on the underlying transactional currencies

and other movements in the table are presented on a constant currency basis.

During the first half of the year, RWAs increased by $48.6bn,

including a rise of $28.7bn due to foreign currency translation

differences. The remaining $19.9bn increase in RWAs was mainly

attributable to asset size movements.

**Asset size**

CIB RWAs rose by $8.4bn, due to an increase in corporate lending,

mainly in the US, UK and Asia. A further increase was due to a rise in

the derivatives portfolio driven by client activity and favourable yields,

mainly in the UK.

In our UK business segment, RWAs increased by $7.1bn, primarily

due to higher corporate lending.

Corporate Centre RWAs increased by $3.5bn, largely driven by a rise

in SAB corporate exposures.

IWPB RWAs increased by $2.0bn, mainly due to an increase in our

asset management exposures and the value of our insurance

business.

In our Hong Kong business, RWAs decreased by $1.0bn due to a fall

in corporate and retail lending.

The $3.7bn decrease in market risk RWAs was attributable to

reductions in modelled measures, primarily stressed value at risk

('SVaR'), as periods of greater volatility dropped out of the data, and

changes in the risk profile of interest rates and foreign exchange.

**Asset quality**

The $5.2bn increase in RWAs was mainly due to unfavourable credit

risk migrations in our Hong Kong, CIB and UK business segments.

**Acquisitions and disposals**

RWAs decreased by $3.0bn, due to the PRA waiver granted in 2025

for the exclusion of operational risk RWAs associated with the sale of

our retail banking operations in France and disposal of our business in

Argentina. Additionally, we sold the ADRs in Galicia received as

purchase consideration from the sale of our business in Argentina.

**Methodology and policy**

The $1.4bn increase in RWAs was primarily due to methodology

changes in CIB, partly offset by credit risk parameter refinements in

CIB and our Hong Kong business.

Leverage ratio

---

| | | |
|:---|:---|:---|
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$bn** | $bn |
| Tier 1 capital (leverage) | **150.6** | 144.1 |
| Total leverage ratio exposure | **2792.9** | 2571.1 |
|  | **%** | % |
| Leverage ratio | **5.4** | 5.6 |

---

Our leverage ratio was 5.4% at 30 June 2025, down from 5.6% at

31 December 2024. The increase in the leverage exposures led to a

0.4 percentage point fall in the leverage ratio, primarily due to growth

in the balance sheet and the impact of foreign currency translation

differences, which was partly offset by a 0.2 percentage point

increase due to an increase in tier 1 capital.

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

3.25% was supplemented by a leverage ratio buffer of 0.9%, made

up of an additional leverage ratio buffer of 0.7% and a countercyclical

leverage ratio buffer of 0.2%. These buffers translated into capital

values of $19.6bn and $5.6bn respectively. We exceeded these

leverage requirements throughout 1H25.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **70** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

Liquidity and funding risk in the first half of 2025

Liquidity metrics

At 30 June 2025, all of the Group's material operating entities were

above regulatory minimum levels.

There have been no material changes to liquidity and funding risk

methodology in the first half of 2025. See page 207 of our Annual

Report and Accounts 2024 for further details.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Operating entities' liquidity | Operating entities' liquidity | Operating entities' liquidity | Operating entities' liquidity | Operating entities' liquidity |  |  |  |  |
|  | **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 |
|  | **LCR**<sup>5</sup> | **HQLA** | **Net outflows** | **NSFR**<sup>5</sup> | LCR<sup>5</sup> | HQLA | Net outflows | NSFR<sup>5</sup> |
|  | **%** | **$bn** | **$bn** | **%** | % | $bn | $bn | % |
| HSBC UK Bank plc (ring-fenced bank)<sup>1</sup> | **186** | **122** | **65** | **151** | 190 | 117 | 61 | 154 |
| HSBC Bank plc (non-ring-fenced bank)<sup>2</sup> | **154** | **145** | **94** | **117** | 148 | 138 | 93 | 115 |
| The Hongkong and Shanghai Banking <br>Corporation Limited – Hong Kong branch<sup>3</sup><br>| **195** | **162** | **83** | **125** | 191 | 145 | 76 | 124 |
| HSBC Singapore<sup>4</sup> | **252** | **35** | **14** | **177** | 287 | 32 | 11 | 184 |
| Hang Seng Bank | **329** | **64** | **19** | **183** | 299 | 57 | 19 | 174 |
| HSBC Bank China | **193** | **26** | **14** | **147** | 191 | 27 | 14 | 147 |
| HSBC Bank USA | **166** | **82** | **49** | **129** | 167 | 80 | 48 | 127 |
| HSBC Continental Europe | **144** | **87** | **60** | **142** | 149 | 82 | 55 | 139 |
| HSBC Bank Middle East – UAE branch | **241** | **15** | **6** | **148** | 251 | 14 | 6 | 151 |
| HSBC Bank Mexico | **162** | **9** | **5** | **115** | 164 | 9 | 6 | 125 |

---

1HSBC UK Bank plc refers to the HSBC UK liquidity group, which comprises four legal entities: HSBC UK Bank plc, Marks and Spencer Financial Services plc,

HSBC Private Bank (UK) Limited and HSBC Innovation Bank Limited. HSBC Trust Company (UK) Limited was included in the HSBC UK liquidity group until

28 February 2025 when the entity was sold. The HSBC UK liquidity group is managed as a single operating entity, in line with the application of UK liquidity

regulation as agreed with the PRA.

2HSBC Bank plc includes overseas branches and special purpose entities consolidated by HSBC for financial statements purposes.

3The Hongkong and Shanghai Banking Corporation Limited – Hong Kong branch represents the material activities of The Hongkong and Shanghai Banking

Corporation Limited. It is monitored and controlled for liquidity and funding risk purposes as a stand-alone operating entity.

4HSBC Singapore includes HSBC Bank (Singapore) Limited and The Hongkong and Shanghai Banking Corporation Limited – Singapore branch. Liquidity and

funding risk is monitored and controlled at country level in line with the local regulator's approval.

5The LCR and NSFR ratios presented in the above table are based on average values. The LCR is the average of the preceding 12 months. The NSFR is the

average of the preceding four quarters.

Consolidated liquidity metrics

**Liquidity coverage ratio**

At 30 June 2025, the average high-quality liquid assets ('HQLA') held

at entity level amounted to $833bn (31 December 2024: $790bn), an

increase of $43bn. The Group consolidation methodology includes a

deduction to reflect the impact of limitations in the transferability of

entity liquidity around the Group. This resulted in an adjustment of

$155bn to liquidity coverage ratio ('LCR') HQLA and $6bn to LCR

inflows on an average basis.

---

| | | | |
|:---|:---|:---|:---|
|  | At<sup>1</sup> | At<sup>1</sup> | At<sup>1</sup> |
|  | **30 Jun 2025** | 30 Jun 2024 | 31 Dec 2024 |
|  | **$bn** | $bn | $bn |
| High-quality liquid assets (in <br>entities)<br>| **833** | 780 | 790 |
| Group LCR HQLA<sup>2</sup> | **678** | 646 | 649 |
| Net outflows<sup>2</sup> | **486** | 472 | 471 |
| Liquidity coverage ratio (%) | **140** | 137 | 138 |
| Adjustment for transfer <br>restrictions<sup>2</sup><br>| **(161)** | (141) | (147) |

---

1Group LCR numbers above are based on average month-end values of the

preceding 12 months.

2These include a total adjustment for transfer restrictions on a 12-month

average basis of $161bn as at 30 June 2025, of which a $155bn deduction

applied to LCR HQLA and $6bn to LCR inflows.

**Liquid assets**

After the $155bn adjustment, the Group LCR HQLA of $678bn

(31 December 2024: $649bn) was held in a range of asset classes

and currencies. Of these, 96% were eligible as Level 1

(31 December 2024: 95%).

The following tables reflect the composition of the liquidity pool by asset

type and currency at 30 June 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Liquidity pool by asset type<sup>1</sup> | Liquidity pool by asset type<sup>1</sup> | Liquidity pool by asset type<sup>1</sup> | Liquidity pool by asset type<sup>1</sup> | Liquidity pool by asset type<sup>1</sup> |
|  | **Liquidity** <br>**pool**<br>| **Cash** | **Level 1**<sup>2</sup> | **Level 2**<sup>2</sup> |
|  | **$bn** | **$bn** | **$bn** | **$bn** |
| Cash and balance at central bank | **259** | **259** | **—** | **—** |
| Central and local government <br>bonds<br>| **382** | **—** | **361** | **21** |
| Regional government and public <br>sector entities<br>| **2** | **—** | **2** | **—** |
| International organisation and <br>multilateral development banks<br>| **24** | **—** | **24** | **—** |
| Covered bonds | **8** | **—** | **2** | **6** |
| Other | **3** | **—** | **—** | **3** |
| **Total at 30 Jun 2025** | **678** | **259** | **389** | **30** |
| Total at 31 Dec 2024 | 649 | 266 | 349 | 34 |

---

1Group liquid assets numbers are based on average month-end values over the

preceding 12 months.

2As defined in EU and PRA regulation, Level 1 assets means 'assets of extremely

high liquidity and credit quality', and Level 2 assets means 'assets of high

liquidity and credit quality'.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Liquidity pool by currency<sup>1</sup> | Liquidity pool by currency<sup>1</sup> | Liquidity pool by currency<sup>1</sup> | Liquidity pool by currency<sup>1</sup> | Liquidity pool by currency<sup>1</sup> | Liquidity pool by currency<sup>1</sup> |
|  | $**£** | **€** | **HK$** | **Other** | **Total** |
|  | **$bn** | **$bn** | **$bn** | **$bn** | **$bn** |
| **Liquidity pool at** <br>**30 Jun 2025**<br>| **173** | **124** | **42** | **125** | **678** |
| Liquidity pool at <br>31 Dec 2024<br>| 170 | 113 | 47 | 123 | 649 |

---

1Group liquid assets numbers are based on average month-end values over

the preceding 12 months.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **71** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

Sources of funding

The following tables provide a view of how our consolidated balance

sheet is funded, and an analysis according to the assets that primarily

arise from operating activities and the sources of funding primarily

supporting these activities.

In 1H25, the level of customer accounts continued to exceed the level

of loans and advances to customers. The positive funding gap was

predominantly deployed in liquid assets.

🡠See page 209 of our Annual Report and Accounts 2024 for further details.

---

| | | |
|:---|:---|:---|
| Funding sources | Funding sources | Funding sources |
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$m** | $m |
| Customer accounts | **1718604** | 1654955 |
| Deposits by banks | **97782** | 73997 |
| Repurchase agreements – non-trading | **195532** | 180880 |
| Debt securities in issue | **102129** | 105785 |
| Cash collateral, margin, settlement accounts <br>and items in course of transmission to other <br>banks<br>| **112850** | 82732 |
| Liabilities of disposal groups held for sale | **46165** | 29011 |
| Subordinated liabilities | **27569** | 25958 |
| Financial liabilities designated at fair value | **163589** | 138727 |
| Insurance contract liabilities | **118297** | 107629 |
| Trading liabilities | **70653** | 65982 |
| – repos | **13954** | 14806 |
| – stock lending | **2907** | 3525 |
| – other trading liabilities | **53792** | 47651 |
| Total equity | **199869** | 192273 |
| Other balance sheet liabilities | **361332** | 359119 |
|  | **3214371** | 3017048 |

---

---

| | | |
|:---|:---|:---|
| Funding uses | Funding uses | Funding uses |
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$m** | $m |
| Loans and advances to customers | **981722** | 930658 |
| Loans and advances to banks | **107582** | 102039 |
| Reverse repurchase agreements – non-trading | **283204** | 252549 |
| Cash collateral, margin, settlement accounts <br>and items in course of collection from other <br>banks<br>| **116625** | 78538 |
| Assets held for sale | **38978** | 27234 |
| Trading assets | **333745** | 314842 |
| – reverse repos | **19194** | 16823 |
| – stock borrowing | **9478** | 8374 |
| – other trading assets | **305073** | 289645 |
| Financial investments | **547955** | 493166 |
| Cash and balances with central banks | **246360** | 267674 |
| Other balance sheet assets | **558200** | 550348 |
|  | **3214371** | 3017048 |

---

Interest rate risk in the banking book in 2025

Banking net interest income sensitivity

Banking NII sensitivity is the sensitivity of our banking net interest

income to interest rate shocks over a 12-month period.

There have been no changes to our methodology or basis of

preparation for the calculation of banking NII sensitivity in the first half

of 2025. For details, see page 202 of our Annual Report and Accounts

2024. For further details on banking NII, see page 18.

The following tables set out the assessed impact to a hypothetical

base case projection of our banking NII under an immediate shock of

100bps to the current market-implied path of interest rates across all

currencies on 30 June 2025.

An immediate interest rate rise of 100bps would increase projected

banking NII by $2.2bn. An immediate interest rate fall of 100bps

would decrease projected banking NII by $3.1bn.

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

increased by $0.1bn in the plus 100bps parallel shock, and by $0.2bn

in the minus 100bps parallel shock, when compared with

31 December 2024. The drivers of the increase in banking NII

sensitivity include change in balance sheet mix and FX impacts, offset

by stabilisation activities. The currency split of banking NII sensitivity

changes depending on the optimal deployment of cash at a point in

time, which will change period on period.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Banking NII sensitivity to an instantaneous change in yield curves (12 months) – Year 1 sensitivity by currency | Banking NII sensitivity to an instantaneous change in yield curves (12 months) – Year 1 sensitivity by currency | Banking NII sensitivity to an instantaneous change in yield curves (12 months) – Year 1 sensitivity by currency | Banking NII sensitivity to an instantaneous change in yield curves (12 months) – Year 1 sensitivity by currency | Banking NII sensitivity to an instantaneous change in yield curves (12 months) – Year 1 sensitivity by currency |
|  | **Currency** | **Currency** | **Currency** |  |
|  | $**HK$** | £**€** | **Other** | **Total** |
|  | **$m** | **$m** | **$m** | **$m** |
| **Change in Jul 2025 to Jun 2026 (based on balance sheet at 30 Jun 2025)** |  |  |  |  |
| +100bps parallel | **329** | **212** | **884** | **2212** |
| -100bps parallel | **(634)** | **(249)** | **(983)** | **(3117)** |
| Change in Jan 2025 to Dec 2025 (based on balance sheet at 31 Dec 2024) |  |  |  |  |
| +100bps parallel | 220 | 301 | 821 | 2133 |
| -100bps parallel | (403) | (314) | (954) | (2886) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Banking NII sensitivity to an instantaneous down 100bps parallel change in yield curves – Year 2 and Year 3 sensitivity by currency | Banking NII sensitivity to an instantaneous down 100bps parallel change in yield curves – Year 2 and Year 3 sensitivity by currency | Banking NII sensitivity to an instantaneous down 100bps parallel change in yield curves – Year 2 and Year 3 sensitivity by currency | Banking NII sensitivity to an instantaneous down 100bps parallel change in yield curves – Year 2 and Year 3 sensitivity by currency | Banking NII sensitivity to an instantaneous down 100bps parallel change in yield curves – Year 2 and Year 3 sensitivity by currency |
|  | **Currency** | **Currency** | **Currency** |  |
|  | $**HK$** | £**€** | **Other** | **Total** |
|  | **$m** | **$m** | **$m** | **$m** |
| **Change in banking NII (based on balance sheet at 30 Jun 2025)** |  |  |  |  |
| Year 2 (Jul 2026 to Jun 2027) | **(704)** | **(348)** | **(1361)** | **(4298)** |
| Year 3 (Jul 2027 to Jun 2028) | **(764)** | **(404)** | **(1516)** | **(5269)** |
| Change in banking NII (based on balance sheet at 31 Dec 2024) |  |  |  |  |
| Year 2 (Jan 2026 to Dec 2026) | (509) | (444) | (1333) | (4075) |
| Year 3 (Jan 2027 to Dec 2027) | (550) | (504) | (1449) | (5056) |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **72** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

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 value at risk ('VaR') of non-

trading portfolios can be found on page 212 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>[74](#i3aacb9d6d5d149b59e70a508ca79dc34_448)</u>, and the

market risk impact of insurance operations on page 233 of the Annual

Report and Accounts 2024.

The VaR for non-trading activity remained stable at $545m at 30 June

2025, compared with $554m at 31 December 2024 as an increase in

the duration risk of the portfolio was largely offset by a decrease in

the historical volatility calibrated by the model.

The average portfolio diversification effect between interest rate and

credit spread exposure decreased during the period to $119m from

$221m.

The Group non-trading VaR for the half-year to 30 June 2025 is shown

in the following table.

---

| | | | | |
|:---|:---|:---|:---|:---|
| 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** <br>**rate**<br>| **Credit** <br>**spread**<br>| **Portfolio**<br> **diversification**<sup>1</sup><br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** |
| **Half-year to 30 Jun 2025** | **446.6** | **217.5** | **(118.8)** | **545.3** |
| Average | **455.4** | **207.1** | **(126.7)** | **535.8** |
| Maximum | **575.3** | **240.0** |  | **617.5** |
| Minimum | **378.9** | **181.3** |  | **458.0** |
| Half-year to 30 Jun 2024 | 682.4 | 333.2 | (224.1) | 791.5 |
| Average | 740.5 | 337.2 | (241.4) | 836.3 |
| Maximum | 1000.6 | 369.1 |  | 1097.6 |
| Minimum | 474.2 | 324.3 |  | 572.2 |
| Half year to 31 Dec 2024 | 528.4 | 246.1 | (220.7) | 553.8 |
| Average | 466.9 | 292.9 | (204.5) | 555.3 |
| Maximum | 691.3 | 342.4 |  | 799.5 |
| Minimum | 292.1 | 242.4 |  | 408.7 |

---

1When VaR is calculated at a portfolio level, natural offsets in risk can occur when compared with aggregating VaR at the asset class level. This difference is called

portfolio diversification. The asset class VaR maxima and minima reported in the table occurred on different dates within the reporting period. For this reason, we

do not report an implied portfolio diversification measure between the maximum (minimum) asset class VaR measures and the maximum (minimum) total VaR

measures in this table.

Non-trading VaR excludes equity risk on securities held at fair value,

non-trading book foreign exchange risk, insurance operations and the

risks managed in HSBC Holdings arising from long-term capital

issuance. HSBC's management of market risk in the non-trading book

is described in 'Treasury risk' on page 200 of the Annual Report and

Accounts 2024.

Market risk

Overview

Market risk is the risk of an adverse financial impact on trading

activities arising from changes in market parameters, such as interest

rates, foreign exchange rates, asset prices, volatilities, correlations

and credit spreads. Exposure to market risk is separated into two

portfolios: trading portfolios and non-trading portfolios.

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.

🡠A summary of our current policies and practices for the management of

market risk is set out in 'Market risk management' on page 216 of the

Annual Report and Accounts 2024.

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 VaR remained within appetite as the

business pursued its core market-making activity 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 the Russia-Ukraine war.

Trading portfolios

**Value at risk of the trading portfolios**

Trading VaR was predominantly generated by Markets and Securities

Services. As of 30 June 2025, trading VaR stood at $34.6m, a

decrease from $38.3m compared with 31 December 2024. Trading

VaR was mainly driven by exposures to interest rate and foreign

exchange risk factors from the Global Foreign Exchange and Global

Debt Markets business lines to facilitate client-driven activity. Trading

VaR peaked at $57.1m in January 2025 driven by exposures to US

dollar interest rates. VaR reduced during the first half of 2025 mainly

as a result of some volatile interest rates scenarios rolling off the VaR

scenario window. The Group trading VaR for the half-year is shown in

the table below.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **73** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| 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>**and commodity**<br>| **Interest**<br>**rate**<br>| **Equity** | **Credit**<br>**spread**<br>| **Portfolio**<br>**diversification**<sup>1</sup><br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| **Half-year to 30 Jun 2025** | **11.2** | **20.5** | **18.2** | **13.1** | **(28.3)** | **34.6** |
| Average | **14.7** | **31.4** | **15.6** | **11.3** | **(34.3)** | **38.8** |
| Maximum | **26.9** | **54.9** | **20.9** | **17.9** |  | **57.1** |
| Minimum | **7.0** | **18.7** | **12.3** | **6.4** |  | **27.3** |
| Half-year to 30 Jun 2024 | 20.6 | 47.5 | 15.7 | 9.9 | (41.1) | 52.7 |
| Average | 15.4 | 57.1 | 14.0 | 10.2 | (37.1) | 59.7 |
| Maximum | 29.8 | 78.1 | 17.6 | 12.7 |  | 83.3 |
| Minimum | 6.9 | 42.0 | 12.7 | 6.6 |  | 45.7 |
| Half-year to 31 Dec 2024 | 14.6 | 34.9 | 16.3 | 8.2 | (35.7) | 38.3 |
| Average | 15.0 | 39.7 | 15.5 | 9.7 | (33.2) | 46.7 |
| Maximum | 27.2 | 59.3 | 20.5 | 13.1 |  | 63.2 |
| Minimum | 8.6 | 24.8 | 13.6 | 6.9 |  | 37.0 |

---

1Asset class VaR reported in the table above is calculated by using a 500-day historical window. Total VaR, which is utilised for internal risk management and for

regulatory capital, is the maximum of VaR calculated by using a 250-day historical window and VaR calculated by using a 500-day historical window. When VaR is

calculated at a portfolio level, natural offsets in risk can occur when compared with aggregating VaR at the asset class level. This difference is called portfolio

diversification. The asset class VaR maxima and minima reported in the table occurred on different dates within the reporting period. For this reason, we do not

report an implied portfolio diversification measure between the maximum (minimum) asset class VaR measures and the maximum (minimum) total VaR

measures in this table.

The table below shows trading VaR at a 99% confidence level compared with trading VaR at a 95% confidence level at 30 June 2025.

This comparison facilitates the benchmarking of the trading VaR, which can be stated at different confidence levels, with financial institution

peers. The 95% VaR is unaudited.

---

| | | |
|:---|:---|:---|
| Comparison of trading VaR, 99% 1 day vs trading VaR, 95% 1 day | Comparison of trading VaR, 99% 1 day vs trading VaR, 95% 1 day | Comparison of trading VaR, 99% 1 day vs trading VaR, 95% 1 day |
|  | **Trading VaR,** <br>**99% 1 day**<br>| **Trading VaR,** <br>**95% 1 day**<br>|
|  | **$m** | **$m** |
| **Half-year to 30 Jun 2025** | **34.6** | **22.2** |
| Average | **38.8** | **24.5** |
| Maximum | **57.1** | **31.4** |
| Minimum | **27.3** | **18.5** |
| Half-year to 30 Jun 2024 | 52.7 | 30.9 |
| Average | 59.7 | 37.8 |
| Maximum | 83.3 | 48.9 |
| Minimum | 45.7 | 28.0 |
| Half-year to 31 Dec 2024 | 38.3 | 23.4 |
| Average | 46.7 | 28.2 |
| Maximum | 63.2 | 39.8 |
| Minimum | 37.0 | 22.0 |

---

**Back-testing**

We routinely validate the accuracy of our VaR models by back-testing

the VaR metric against both actual and hypothetical profit and loss.

Hypothetical profit and loss excludes non-modelled items such as

fees, commissions and revenue related to intra-day transactions. The

hypothetical profit and loss reflects the profit and loss that would be

realised if positions were held constant from the end of one trading

day to the end of the next. This measure of profit and loss does not

align with how risk is dynamically hedged and is not, therefore,

necessarily indicative of the actual performance of the business.

The number of hypothetical loss back-testing exceptions, together

with a number of other indicators, is used to assess model

performance and to consider whether enhanced internal monitoring

of the VaR model is required. We back-test our VaR at set levels of

our Group entity hierarchy.

During the first half of 2025, the Group experienced one back-testing

exception against hypothetical losses. This exception was mainly

driven by heightened market volatility observed after tariffs policy

announcements, with equity volatilities and credit spreads as the

main contributing risk factors.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **74** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | **Interim management report** | Interim condensed consolidated <br>financial statements<br>| Additional information |
|  | Risk |  |  |

---

Insurance manufacturing operations risk

Insurance manufacturing operations risk 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 231 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** <br>**participating and** <br>**investment** <br>**DPF contracts** <br>| **Life**<br>**other**<sup>1</sup><br>| **Other**<br>**contracts**<sup>2</sup><br>| **Shareholder** <br>**assets**<br>**and liabilities**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** |
| Financial assets | **107933** | **5069** | **6652** | **6596** | **126250** |
| – financial assets designated and otherwise mandatorily measured at fair <br>value through profit or loss<br>| **103127** | **4757** | **5330** | **1100** | **114314** |
| – derivatives | **169** | **11** | **2** | **1** | **183** |
| – financial investments – at amortised cost | **537** | **80** | **1012** | **4279** | **5908** |
| – financial assets at fair value through other comprehensive income | **—** | **—** | **4** | **67** | **71** |
| – other financial assets | **4100** | **221** | **304** | **1149** | **5774** |
| Insurance contract assets | **15** | **159** | **—** | **—** | **174** |
| Reinsurance contract assets | **—** | **6334** | **—** | **—** | **6334** |
| Other assets and investment properties<sup>3</sup> | **27985** | **63** | **38** | **4148** | **32234** |
| **Total assets at 30 Jun 2025** | **135933** | **11625** | **6690** | **10744** | **164992** |
| Liabilities under investment contracts designated at fair value | **—** | **—** | **6332** | **—** | **6332** |
| Insurance contract liabilities | **112618** | **4831** | **—** | **—** | **117449** |
| Reinsurance contract liabilities | **—** | **691** | **—** | **—** | **691** |
| Deferred tax | **—** | **—** | **—** | **12** | **12** |
| Other liabilities | **24883** | **44** | **—** | **7862** | **32789** |
| **Total liabilities** | **137501** | **5566** | **6332** | **7874** | **157273** |
| **Total equity** | **—** | **—** | **—** | **7719** | **7719** |
| **Total liabilities and equity at 30 Jun 2025** | **137501** | **5566** | **6332** | **15593** | **164992** |
| Financial assets | 98676 | 4452 | 6227 | 5967 | 115322 |
| – financial assets designated and otherwise mandatorily measured at fair <br>value through profit or loss<br>| 94327 | 4233 | 4839 | 690 | 104089 |
| – derivatives | 207 | 7 | 1 |  | 215 |
| – financial investments – at amortised cost | 545 | 90 | 1060 | 4335 | 6030 |
| – financial assets at fair value through other comprehensive income |  |  | 6 | 73 | 79 |
| – other financial assets | 3597 | 122 | 321 | 869 | 4909 |
| Insurance contract assets | 14 | 104 |  |  | 118 |
| Reinsurance contract assets |  | 5013 |  |  | 5013 |
| Other assets and investment properties | 24647 | 64 | 36 | 3337 | 28084 |
| Total assets at 31 Dec 2024 | 123337 | 9633 | 6263 | 9304 | 148537 |
| Liabilities under investment contracts designated at fair value |  |  | 5931 |  | 5931 |
| Insurance contract liabilities | 102605 | 4427 |  |  | 107032 |
| Reinsurance contract liabilities |  | 701 |  |  | 701 |
| Deferred tax |  |  |  | 12 | 12 |
| Other liabilities | 21772 | 39 |  | 6035 | 27846 |
| Total liabilities | 124377 | 5167 | 5931 | 6047 | 141522 |
| Total equity |  |  |  | 7015 | 7015 |
| Total liabilities and equity at 31 Dec 2024 | 124377 | 5167 | 5931 | 13062 | 148537 |

---

1'Life other' mainly includes protection insurance contracts as well as reinsurance contracts. The reinsurance contracts primarily provide diversification benefits

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

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

3At 30 June 2025 'Other assets and investment properties' includes $27,860m (31 December 2024: $24,222m) and 'Other liabilities' includes $26,858m

(31 December 2024: $23,420m) in respect of the classification of the French life insurance business assets and liabilities as held for sale. Further details are

provided on page 98.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **75** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Interim condensed consolidated

financial statements

---

| | | | |
|:---|:---|:---|:---|
| Consolidated income statement | Consolidated income statement | Consolidated income statement | Consolidated income statement |
|  |  | Half-year to | Half-year to |
|  |  | **30 Jun 2025** | 30 Jun 2024 |
|  | Notes<sup>\*</sup> | **$m** | $m |
| Net interest income |  | **16821** | 16911 |
| – interest income |  | **49008** | 55372 |
| – interest expense |  | **(32187)** | (38461) |
| Net fee income | 2 | **6643** | 6200 |
| – fee income |  | **8640** | 8158 |
| – fee expense |  | **(1997)** | (1958) |
| Net income from financial instruments held for trading or managed on a fair value basis<sup>1</sup> |  | **10547** | 10516 |
| Net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value <br>through profit or loss<br>|  | **5113** | 2376 |
| Insurance finance expense |  | **(5329)** | (2486) |
| Insurance service result |  | **785** | 662 |
| – insurance service revenue |  | **1511** | 1310 |
| – insurance service expense |  | **(726)** | (648) |
| Gain less impairment relating to sale of business operations<sup>2</sup> |  | **(34)** | 3256 |
| Other operating (expense)/income<sup>3</sup> |  | **(424)** | (143) |
| **Net operating income before change in expected credit losses and other credit impairment charges**<sup>4</sup> |  | **34122** | 37292 |
| Change in expected credit losses and other credit impairment charges |  | **(1941)** | (1066) |
| **Net operating income** |  | **32181** | 36226 |
| Employee compensation and benefits |  | **(9903)** | (9192) |
| General and administrative expenses |  | **(4894)** | (5135) |
| Depreciation and impairment of property, plant and equipment and right-of-use assets |  | **(955)** | (867) |
| Amortisation and impairment of intangible assets |  | **(1270)** | (1102) |
| **Total operating expenses** |  | **(17022)** | (16296) |
| **Operating profit** |  | **15159** | 19930 |
| Share of profit in associates and joint ventures |  | **1651** | 1626 |
| Impairment of interest in associate<sup>3</sup> |  | **(1000)** |  |
| **Profit before tax** |  | **15810** | 21556 |
| Tax expense |  | **(3369)** | (3891) |
| **Profit after tax** |  | **12441** | 17665 |
| Attributable to: |  |  |  |
| – ordinary shareholders of the parent company |  | **11510** | 16586 |
| – other equity holders |  | **547** | 526 |
| – non-controlling interests |  | **384** | 553 |
| **Profit after tax** |  | **12441** | 17665 |
|  |  | **$** | $|
| Basic earnings per ordinary share | 4 | **0.65** | 0.89 |
| Diluted earnings per ordinary share | 4 | **0.65** | 0.88 |

---

1The amount in 1H25 includes a $0.1bn mark-to-market gain on interest rate hedging of the portfolio of retained loans post sale of our retail banking operations in France and

a $0.1bn fair value loss on Grupo Financiero Galicia's ('Galicia') American Depositary Receipts ('ADRs') received as purchase consideration from the sale of our business in

Argentina, which were disposed of in 2Q25. Amount in 1H24 includes a $255m gain on the foreign exchange hedging of the proceeds from the sale of our banking

business in Canada.

2Includes amounts from 'Other operating income' relating to the execution of all sales of business operations. In 1H24, a gain of $4.6bn inclusive of the recycling of $0.6bn in

foreign currency translation reserve losses and $0.4bn of other reserves recycling losses on the sale of our banking business in Canada, and an impairment loss of $1.2bn

relating to the sale of our business in Argentina was recognised.

3The amount in 1H25 'Other operating (expense)/income' includes a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in BoCom.

We have also recognised a $1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in BoCom in 'Impairment of interest in

associate'. See Note 10 on page <u>[93](#i8e8ecbd1e3414dedb6f068494c12f9d9_550)</u>.

4Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.

\*For Notes on the interim condensed consolidated financial statements, see page <u>[82](#i9f92bfa335294cb385cb27493159d133_169)</u>.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **76** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Consolidated statement of comprehensive income

---

| | | |
|:---|:---|:---|
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| Profit for the period | **12441** | 17665 |
| **Other comprehensive income/(expense)** |  |  |
| **Items that will be reclassified subsequently to profit or loss when specific conditions are met:** |  |  |
| Debt instruments at fair value through other comprehensive income<sup>1</sup> | **205** | (213) |
| – fair value gains/(losses) | **640** | (378) |
| – fair value gains transferred to the income statement on disposal | **(83)** | (24) |
| – expected credit losses recognised in the income statement | **2** | 13 |
| – disposal of subsidiary | **—** | 90 |
| – income taxes | **(354)** | 86 |
| Cash flow hedges | **1891** | (710) |
| – fair value losses | **(568)** | (612) |
| – fair value losses/(gains) reclassified to the income statement | **3037** | (673) |
| – disposal of subsidiary | **—** | 262 |
| – income taxes | **(578)** | 313 |
| Share of other comprehensive (expense)/income of associates and joint ventures  | **(59)** | 211 |
| – share for the period | **(3)** | 211 |
| – other comprehensive income reclassified to the income statement on dilution of interest in an associate | **(56)** |  |
| Net finance income from insurance contracts | **16** | 17 |
| – before income taxes | **21** | 23 |
| – income taxes | **(5)** | (6) |
| Exchange differences | **6404** | (2588) |
| – foreign exchange losses reclassified to the income statement on disposal or dilution of a foreign operation<sup>2</sup> | **224** | 648 |
| – other exchange differences | **6180** | (3236) |
| **Items that will not be reclassified subsequently to profit or loss:** |  |  |
| Fair value gains on property revaluation | **14** | 5 |
| Remeasurement of defined benefit (liability)/asset | **(347)** | 146 |
| – before income taxes | **(461)** | 178 |
| – income taxes | **114** | (32) |
| Changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk | **242** | (283) |
| – before income taxes | **315** | (372) |
| – income taxes | **(73)** | 89 |
| Equity instruments designated at fair value through other comprehensive income | **93** | 41 |
| – fair value gains | **88** | 62 |
| – income taxes | **5** | (21) |
| Effects of hyperinflation | **81** | 892 |
| **Other comprehensive income/(expense) for the period, net of tax** | **8540** | (2482) |
| **Total comprehensive income for the period** | **20981** | 15183 |
| Attributable to: |  |  |
| – ordinary shareholders of the parent company | **19917** | 14131 |
| – other equity holders | **547** | 526 |
| – non-controlling interests  | **517** | 526 |
| **Total comprehensive income for the period** | **20981** | 15183 |

---

1Amount in 1H25 includes a $1.4bn pre-tax fair value loss (including foreign exchange movements) in other comprehensive income on a retained portfolio of

home and other loans associated with the sale of our retail banking operations in France. The loss arose largely upon reclassification from hold-to-collect to hold-

to-collect-and-sell business model on 1 January 2025, resulting in its remeasurement from amortised cost to fair value through other comprehensive income.

2Amount in 1H25 includes a $197m foreign exchange translation reserves loss recycled to the income statement as a result of the dilution of the shareholding in

BoCom.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **77** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Consolidated balance sheet

---

| | | | |
|:---|:---|:---|:---|
|  |  | At | At |
|  |  | **30 Jun 2025** | 31 Dec 2024 |
|  | Notes<sup>\*</sup> | **$m** | $m |
| **Assets** |  |  |  |
| Cash and balances at central banks  |  | **246360** | 267674 |
| Hong Kong Government certificates of indebtedness |  | **42592** | 42293 |
| Trading assets  |  | **333745** | 314842 |
| Financial assets designated and otherwise mandatorily measured at fair value through profit or loss |  | **128942** | 115769 |
| Derivatives | 8 | **249672** | 268637 |
| Loans and advances to banks  |  | **107582** | 102039 |
| Loans and advances to customers |  | **981722** | 930658 |
| Reverse repurchase agreements – non-trading  |  | **283204** | 252549 |
| Financial investments | 9 | **547955** | 493166 |
| Assets held for sale |  | **38978** | 27234 |
| Prepayments, accrued income and other assets |  | **204370** | 152740 |
| Current tax assets |  | **1364** | 1313 |
| Interests in associates and joint ventures | 10 | **28202** | 28909 |
| Goodwill and intangible assets |  | **13022** | 12384 |
| Deferred tax assets |  | **6661** | 6841 |
| **Total assets**  |  | **3214371** | 3017048 |
| **Liabilities** |  |  |  |
| Hong Kong currency notes in circulation |  | **42592** | 42293 |
| Deposits by banks  |  | **97782** | 73997 |
| Customer accounts |  | **1718604** | 1654955 |
| Repurchase agreements – non-trading |  | **195532** | 180880 |
| Trading liabilities  |  | **70653** | 65982 |
| Financial liabilities designated at fair value |  | **163589** | 138727 |
| Derivatives | 8 | **257601** | 264448 |
| Debt securities in issue  |  | **102129** | 105785 |
| Liabilities of disposal groups held for sale |  | **46165** | 29011 |
| Accruals, deferred income and other liabilities |  | **167062** | 130340 |
| Current tax liabilities |  | **3232** | 1729 |
| Insurance contract liabilities |  | **118297** | 107629 |
| Provisions | 11 | **2125** | 1724 |
| Deferred tax liabilities |  | **1570** | 1317 |
| Subordinated liabilities |  | **27569** | 25958 |
| **Total liabilities**  |  | **3014502** | 2824775 |
| **Equity** |  |  |  |
| Called up share capital |  | **8739** | 8973 |
| Share premium account |  | **14918** | 14810 |
| Other equity instruments |  | **20716** | 19070 |
| Other reserves |  | **(1556)** | (10282) |
| Retained earnings |  | **149737** | 152402 |
| **Total shareholders' equity**  |  | **192554** | 184973 |
| Non-controlling interests  |  | **7315** | 7300 |
| **Total equity**  |  | **199869** | 192273 |
| **Total liabilities and equity**  |  | **3214371** | 3017048 |

---

\*For Notes on the interim condensed consolidated financial statements, see page <u>[82](#i9f92bfa335294cb385cb27493159d133_169)</u>.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **78** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Consolidated statement of changes in equity

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **Other reserves** | **Other reserves** | **Other reserves** | **Other reserves** | **Other reserves** |  |  |  |  |
|  | **Called up** <br>**share** <br>**capital** <br>**and share** <br>**premium**<br>| **Other** <br>**equity**<br>**instru-**<br>**ments**<br>| **Financial** <br>**assets at** <br>**FVOCI** <br>**reserve**<sup>1</sup><br>| **Cash** <br>**flow**<br>**hedging**<br>**reserve**<br>| **Foreign** <br>**exchange**<br>**reserve**<br>| **Merger** <br>**and** <br>**other** <br>**reserves**<br>| **Insurance**<br>**finance**<br>**reserve**<sup>2</sup><br>| **Retained**<br>**earnings**<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** | **23783** | **19070** | **(3246)** | **(1079)** | **(32887)** | **26328** | **602** | **152402** | **184973** | **7300** | **192273** |
| Profit for the period | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **12057** | **12057** | **384** | **12441** |
| Other comprehensive <br>income (net of tax)<br>| **—** | **—** | **6** | **1734** | **6630** | **14** | **102** | **(79)** | **8407** | **133** | **8540** |
| – debt instruments at fair <br>value through other <br>comprehensive income<br>| **—** | **—** | **177** | **—** | **—** | **—** | **—** | **—** | **177** | **28** | **205** |
| – equity instruments <br>designated at fair value <br>through other <br>comprehensive income<br>| **—** | **—** | **57** | **—** | **—** | **—** | **—** | **—** | **57** | **36** | **93** |
| – cash flow hedges | **—** | **—** | **—** | **1794** | **—** | **—** | **—** | **—** | **1794** | **97** | **1891** |
| – changes in fair value of <br>financial liabilities <br>designated at fair value <br>upon initial recognition <br>arising from changes in <br>own credit risk<br>| **—** | **—** | **—** | **—** | **—** | **—** | **—** | **242** | **242** | **—** | **242** |
| – property revaluation | **—** | **—** | **—** | **—** | **—** | **14** | **—** | **—** | **14** | **—** | **14** |
| – remeasurement of <br>defined benefit asset/<br>(liability)<br>| **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(343)** | **(343)** | **(4)** | **(347)** |
| – share of other <br>comprehensive income of <br>associates and joint <br>ventures<br>| **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(3)** | **(3)** | **—** | **(3)** |
| – effects of hyperinflation | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **81** | **81** | **—** | **81** |
| – foreign exchange losses <br>reclassified to income <br>statement on disposal or <br>dilution of a foreign <br>operation<sup>3</sup><br>| **—** | **—** | **—** | **—** | **224** | **—** | **—** | **—** | **224** | **—** | **224** |
| – other reserves <br>reclassified to income <br>statement on disposal or <br>dilution of a foreign <br>operation<sup>3</sup><br>| **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(56)** | **(56)** | **—** | **(56)** |
| – insurance finance income <br>recognised in other <br>comprehensive income<br>| **—** | **—** | **—** | **—** | **—** | **—** | **16** | **—** | **16** | **—** | **16** |
| – other exchange <br>differences<br>| **—** | **—** | **(228)** | **(60)** | **6406** | **—** | **86** | **—** | **6204** | **(24)** | **6180** |
| **Total comprehensive** <br>**income for the period**<br>| **—** | **—** | **6** | **1734** | **6630** | **14** | **102** | **11978** | **20464** | **517** | **20981** |
| Shares issued under <br>employee remuneration and <br>share plans<br>| **113** | **—** | **—** | **—** | **—** | **—** | **—** | **(113)** | **—** | **—** | **—** |
| Capital securities issued<sup>4</sup> | **—** | **4096** | **—** | **—** | **—** | **—** | **—** | **—** | **4096** | **—** | **4096** |
| Dividends to shareholders | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(8694)** | **(8694)** | **(477)** | **(9171)** |
| Redemption of securities<sup>5</sup> | **—** | **(2450)** | **—** | **—** | **—** | **—** | **—** | **—** | **(2450)** | **—** | **(2450)** |
| Cost of share-based <br>payment arrangements<br>| **—** | **—** | **—** | **—** | **—** | **—** | **—** | **316** | **316** | **—** | **316** |
| Share buy-backs<sup>6</sup> | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(5023)** | **(5023)** | **—** | **(5023)** |
| Cancellation of shares | **(239)** | **—** | **—** | **—** | **—** | **239** | **—** | **—** | **—** | **—** | **—** |
| Other movements | **—** | **—** | **1** | **—** | **—** | **—** | **—** | **(1129)** | **(1128)** | **(25)** | **(1153)** |
| **At 30 Jun 2025** | **23657** | **20716** | **(3239)** | **655** | **(26257)** | **26581** | **704** | **149737** | **192554** | **7315** | **199869** |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **79** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Consolidated statement of changes in equity (continued) | Consolidated statement of changes in equity (continued) | Consolidated statement of changes in equity (continued) | Consolidated statement of changes in equity (continued) | Consolidated statement of changes in equity (continued) | Consolidated statement of changes in equity (continued) | Consolidated statement of changes in equity (continued) | Consolidated statement of changes in equity (continued) | Consolidated statement of changes in equity (continued) | Consolidated statement of changes in equity (continued) | Consolidated statement of changes in equity (continued) | Consolidated statement of changes in equity (continued) |
|  |  |  | Other reserves | Other reserves | Other reserves | Other reserves | Other reserves |  |  |  |  |
|  | Called up <br>share <br>capital <br>and share <br>premium<br>| Other <br>equity<br> instru-<br>ments<br>| Financial <br>assets at <br>FVOCI <br>reserve<br>| Cash <br>flow<br>hedging<br>reserve<br>| Foreign <br>exchange <br>reserve<br>| Merger <br>and<br> other <br>reserves<br>| Insurance<br>finance<br>reserve<sup>2</sup><br>| Retained<br>earnings<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 | 24369 | 17719 | (3507) | (1033) | (33753) | 28601 | 785 | 152148 | 185329 | 7281 | 192610 |
| Profit for the period |  |  |  |  |  |  |  | 17112 | 17112 | 553 | 17665 |
| Other comprehensive <br>income (net of tax)<br>|  |  | (164) | (691) | (2551) | 5 | (10) | 956 | (2455) | (27) | (2482) |
| – debt instruments at fair <br>value through other <br>comprehensive income<br>|  |  | (313) |  |  |  |  |  | (313) | 10 | (303) |
| – equity instruments <br>designated at fair value <br>through other <br>comprehensive income<br>|  |  | 35 |  |  |  |  |  | 35 | 6 | 41 |
| – cash flow hedges |  |  |  | (970) |  |  |  |  | (970) | (2) | (972) |
| – changes in fair value of <br>financial liabilities <br>designated at fair value <br>upon initial recognition <br>arising from changes in <br>own credit risk<br>|  |  |  |  |  |  |  | (283) | (283) |  | (283) |
| – property revaluation |  |  |  |  |  | 5 |  |  | 5 |  | 5 |
| – remeasurement of <br>defined benefit asset/<br>(liability)<br>|  |  |  |  |  |  |  | 136 | 136 | 10 | 146 |
| – share of other <br>comprehensive income of <br>associates and joint <br>ventures<br>|  |  |  |  |  |  |  | 211 | 211 |  | 211 |
| – effects of hyperinflation |  |  |  |  |  |  |  | 892 | 892 |  | 892 |
| – foreign exchange losses <br>reclassified to income <br>statement on disposal or <br>dilution of a foreign <br>operation<br>|  |  |  |  | 648 |  |  |  | 648 |  | 648 |
| – other reserves <br>reclassified to income <br>statement on disposal or <br>dilution of a foreign <br>operation<br>|  |  | 90 | 262 |  |  |  |  | 352 |  | 352 |
| – insurance finance income <br>recognised in other <br>comprehensive income<br>|  |  |  |  |  |  | 17 |  | 17 |  | 17 |
| – other exchange <br>differences<br>|  |  | 24 | 17 | (3199) |  | (27) |  | (3185) | (51) | (3236) |
| Total comprehensive <br>income for the period<br>|  |  | (164) | (691) | (2551) | 5 | (10) | 18068 | 14657 | 526 | 15183 |
| Shares issued under <br>employee remuneration and <br>share plans<br>| 75 |  |  |  |  |  |  | (75) |  |  |  |
| Capital securities issued |  | 1106 |  |  |  |  |  |  | 1106 |  | 1106 |
| Dividends to shareholders |  |  |  |  |  |  |  | (12217) | (12217) | (468) | (12685) |
| Cost of share-based <br>payment arrangements<br>|  |  |  |  |  |  |  | 274 | 274 |  | 274 |
| Transfers |  |  |  |  |  | (2945) |  | 2945 |  |  |  |
| Share buy-backs |  |  |  |  |  |  |  | (5019) | (5019) |  | (5019) |
| Cancellation of shares | (326) |  |  |  |  | 326 |  |  |  |  |  |
| Other movements |  |  | 4 |  |  | 3 |  | (844) | (837) | (218) | (1055) |
| At 30 Jun 2024 | 24118 | 18825 | (3667) | (1724) | (36304) | 25990 | 775 | 155280 | 183293 | 7121 | 190414 |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **80** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Consolidated statement of changes in equity (continued)

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | Other reserves | Other reserves | Other reserves | Other reserves | Other reserves |  |  |  |  |
|  | Called up <br>share <br>capital <br>and share <br>premium<br>| Other <br>equity<br> instru-<br>ments<br>| Financial <br>assets at <br>FVOCI <br>reserve<br>| Cash <br>flow<br>hedging<br>reserve<br>| Foreign <br>exchange <br>reserve<br>| Merger <br>and<br> other <br>reserves<br>| Insurance<br>finance<br>reserve<sup>2</sup><br>| Retained<br>earnings<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 | 24118 | 18825 | (3667) | (1724) | (36304) | 25990 | 775 | 155280 | 183293 | 7121 | 190414 |
| Profit for the period |  |  |  |  |  |  |  | 6867 | 6867 | 467 | 7334 |
| Other comprehensive <br>income (net of tax)<br>|  |  | 423 | 645 | 3414 |  | (173) | 62 | 4371 | 51 | 4422 |
| – debt instruments at fair <br>value through other <br>comprehensive income<br>|  |  | 375 |  |  |  |  |  | 375 | 6 | 381 |
| – equity instruments <br>designated at fair value <br>through other <br>comprehensive income<br>|  |  | 40 |  |  |  |  |  | 40 | 18 | 58 |
| – cash flow hedges |  |  |  | 658 |  |  |  |  | 658 |  | 658 |
| – changes in fair value of <br>financial liabilities <br>designated at fair value <br>upon initial recognition <br>arising from changes in <br>own credit risk<br>|  |  |  |  |  |  |  | (156) | (156) |  | (156) |
| – property revaluation |  |  |  |  |  |  |  |  |  |  |  |
| – remeasurement of <br>defined benefit asset/<br>(liability)<br>|  |  |  |  |  |  |  | (380) | (380) | 6 | (374) |
| – share of other <br>comprehensive income of <br>associates and joint <br>ventures<br>|  |  |  |  |  |  |  | 251 | 251 |  | 251 |
| – effects of hyperinflation |  |  |  |  |  |  |  | 347 | 347 |  | 347 |
| – foreign exchange losses <br>reclassified to income <br>statement on disposal or <br>dilution of a foreign <br>operation<br>|  |  |  |  | 5168 |  |  |  | 5168 |  | 5168 |
| – other reserves <br>reclassified to income <br>statement on disposal or <br>dilution of a foreign <br>operation<br>|  |  | (5) |  |  |  |  |  | (5) |  | (5) |
| – insurance finance <br>expense recognised in <br>other comprehensive <br>income<br>|  |  |  |  |  |  | (159) |  | (159) |  | (159) |
| – other exchange <br>differences<br>|  |  | 13 | (13) | (1754) |  | (14) |  | (1768) | 21 | (1747) |
| Total comprehensive <br>income for the period<br>|  |  | 423 | 645 | 3414 |  | (173) | 6929 | 11238 | 518 | 11756 |
| Shares issued under <br>employee remuneration and <br>share plans<br>| 2 |  |  |  |  |  |  | (2) |  |  |  |
| Capital securities issued |  | 2495 |  |  |  |  |  |  | 2495 |  | 2495 |
| Dividends to shareholders |  |  |  |  |  |  |  | (4193) | (4193) | (222) | (4415) |
| Redemption of securities |  | (2250) |  |  |  |  |  |  | (2250) |  | (2250) |
| Cost of share-based <br>payment arrangements<br>|  |  |  |  |  |  |  | 255 | 255 |  | 255 |
| Share buy-backs |  |  |  |  |  |  |  | (6024) | (6024) |  | (6024) |
| Cancellation of shares | (337) |  |  |  |  | 337 |  |  |  |  |  |
| Other movements |  |  | (2) |  | 3 | 1 |  | 157 | 159 | (117) | 42 |
| At 31 Dec 2024 | 23783 | 19070 | (3246) | (1079) | (32887) | 26328 | 602 | 152402 | 184973 | 7300 | 192273 |

---

1Amount in 1H25 includes$1.4bn of pre-tax cumulative unrealised loss in other comprehensive income, including foreign exchange movements shown in 'Other

exchange differences', on a retained portfolio of home and certain other loans associated with the sale of our retail banking operations in France. The loss arose

largely upon reclassification from hold-to-collect to a hold-to-collect-and-sell business model on 1 January 2025, resulting in its remeasurement from amortised

cost to fair value through other comprehensive income.

2The insurance finance reserve reflects the impact of 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').

3Amount in 1H25 includes the recycling of a $197m foreign currency translation reserves loss and $56m other reserves gain as a result of the dilution of the

shareholding in BoCom.

4HSBC Holdings issued $1,500m 6.950% contingent convertible securities in February 2025, and a further SGD800m 5.000% and $2,000m7.050% contingent

convertible securities in March and June 2025, respectively. All instruments were recorded net of issuance costs.

5In March 2025, HSBC Holdings redeemed its $2,450m6.375% contingent convertible securities.

6HSBC Holdings announced the following share buy-backs during 1H25: a share buy-back of up to $2.0bn in February 2025, which was completed in April 2025;

and a share buy-back of up to $3.0bn in May 2025, which was completed in July 2025.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **81** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

---

| | | |
|:---|:---|:---|
| Consolidated statement of cash flows | Consolidated statement of cash flows | Consolidated statement of cash flows |
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| **Profit before tax** | **15810** | 21556 |
| **Adjustments for non-cash items:** |  |  |
| Depreciation, amortisation and impairment | **2225** | 1969 |
| Net loss/(gain) from investing activities<sup>1</sup> | **1127** | (34) |
| Share of profit in associates and joint ventures | **(1651)** | (1626) |
| Impairment of interest in associate<sup>2</sup> | **1000** |  |
| Net loss/(gain) on acquisition/disposal of subsidiaries, businesses, associates and joint ventures | **73** | (3199) |
| Change in expected credit losses gross of recoveries and other credit impairment charges | **2077** | 1192 |
| Provisions including pensions | **584** | 15 |
| Share-based payment expense | **315** | 274 |
| Other non-cash items included in profit before tax | **(2732)** | (4237) |
| Elimination of exchange differences<sup>3</sup> | **(41720)** | 18406 |
| Change in operating assets<sup>4</sup> | **(136572)** | (41493) |
| Change in operating liabilities | **174060** | 36486 |
| Dividends received from associates | **850** | 130 |
| Contributions paid to defined benefit plans | **(67)** | (76) |
| Tax paid | **(2197)** | (2664) |
| **Net cash from operating activities** | **13182** | 26699 |
| Purchase of financial investments | **(266941)** | (259999) |
| Proceeds from the sale and maturity of financial investments | **232360** | 223443 |
| Net cash flows from the purchase and sale of property, plant and equipment | **(504)** | (464) |
| Net investment in intangible assets | **(1316)** | (1058) |
| Net cash inflow on acquisition/disposal of subsidiaries, businesses, associates and joint ventures<sup>5</sup> | **—** | 9891 |
| Net cash outflow on acquisition/disposal of subsidiaries, businesses, associates and joint ventures<sup>5</sup> | **(29)** | (10612) |
| **Net cash from investing activities** | **(36430)** | (38799) |
| Issue of ordinary share capital and other equity instruments | **4096** | 1106 |
| Share buy-backs | **(5386)** | (5330) |
| Net sales/(purchases) of own shares for market-making and investment purposes | **(1100)** | (494) |
| Redemption of preference shares and other equity instruments | **(2450)** |  |
| Subordinated loan capital issued | **2340** | 2611 |
| Subordinated loan capital repaid | **(1986)** | (2000) |
| Dividends paid to shareholders of the parent company and non-controlling interests | **(9171)** | (12685) |
| **Net cash from financing activities** | **(13657)** | (16792) |
| **Net decrease in cash and cash equivalents** | **(36905)** | (28892) |
| Cash and cash equivalents at the beginning of the period | **434940** | 490933 |
| Exchange differences in respect of cash and cash equivalents | **30872** | (13057) |
| **Cash and cash equivalents at the end of the period**<sup>6</sup> | **428907** | 448984 |

---

Interest received was $50,078m (1H24: $54,197m), interest paid was $35,065m (1H24: $41,254m) and dividends received (excluding dividends

received from associates, which are presented separately above) were $1,339m (1H24: $1,231m).

1Amount in 1H25 includes a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in BoCom.

2Amount in 1H25 includes a $1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in BoCom.

3Adjustments 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.

4Includes net settlement of the foreign exchange hedge of the proceeds from the sale of our banking business in Canada, nil in 1H25 (1H24: $255m gain).

5The 'Net cash inflow on acquisition/disposal of subsidiaries, businesses, associates and joint ventures' includes $9.3bn of net cash inflow on the sale of our

banking business in Canada in March 2024. The 'Net cash outflow on acquisition/disposal of subsidiaries, businesses, associates and joint ventures' includes

$10.6bn of net cash outflow on the sale of our retail banking operations in France in January 2024.

6Includes $2.5bn (1H24: $1.7bn) of cash and cash equivalents classified as held for sale.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **82** |

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| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Notes on the interim condensed

consolidated financial statements

---

| | |
|:---|:---|
| 1 | Basis of preparation and material accounting policies |

---

(a)Compliance with International Financial Reporting Standards

Our interim condensed consolidated financial statements 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 HSBC'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 interim condensed consolidated 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

HSBC.

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 debt financial assets, the valuation of financial instruments, deferred tax assets, provisions, interests in associates, impairment of

goodwill and non-financial assets, and post-employment benefit plans. The Group does not consider there to be a significant risk of a material

adjustment to the carrying amount of goodwill in this financial year, but does consider this to be an area that is inherently judgemental. The

Group's consideration of this risk includes taking account of the implications for cash-generating units arising from the revised organisational

structure that has been effective from 1 January 2025.

There were no material changes in the current period to any of the critical estimates and judgements disclosed in2024, which are stated on

pages 88 and 354 to 365 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 acquisitions and disposals, see Note 15 'Assets held for sale, liabilities of disposal groups held for sale and

business acquisitions'.

(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.

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. HSBC are currently assessing impacts and data readiness.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **83** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

(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, as well as the related impacts on profitability, capital

and liquidity.

(f)Accounting policies

The accounting policies that we applied for these interim condensed consolidated financial statements are consistent with those described on

pages 353 to 365 of the Annual Report and Accounts2024, as are the methods of computation.

(g)Presentation of information

Certain disclosures have been presented elsewhere in the Form 6-K, rather than in the notes to the financial statements. These are as follows:

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

commitments and financial guarantees included in the 'Risk' section on pages 55 to 57.

–Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation

included in the 'Risk' section on page 58.

–Share buy-back included in the 'Shareholder information' section on page 103.

2Net fee income

---

| | | |
|:---|:---|:---|
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| **Net fee income by product** |  |  |
| Funds under management | **1355** | 1206 |
| Cards | **1388** | 1395 |
| Credit facilities | **694** | 754 |
| Account services | **734** | 760 |
| Broking income | **769** | 626 |
| Unit trusts | **659** | 515 |
| Underwriting | **385** | 369 |
| Global custody | **457** | 401 |
| Remittances | **418** | 399 |
| Imports/exports | **294** | 313 |
| Insurance agency commission | **237** | 183 |
| Other | **1250** | 1237 |
| **Fee income** | **8640** | 8158 |
| Less: fee expense | **(1997)** | (1958) |
| **Net fee income**  | **6643** | 6200 |
| **Net fee income by business segment** |  |  |
| Hong Kong | **1435** | 1154 |
| UK | **907** | 891 |
| CIB | **2217** | 2223 |
| IWPB | **2085** | 1922 |
| Corporate Centre | **(1)** | 10 |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **84** |

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| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

3Dividends

On 30 July 2025, the Directors approved a second interim dividend for 2025 of $0.10 per ordinary share in respect of the financial year ending

31 December 2025. This distribution amounts to approximately $1.74bn and will be payable on 26 September 2025.No liability is recognised in

the financial statements in respect of these dividends.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Dividends paid to shareholders of HSBC Holdings plc | Dividends paid to shareholders of HSBC Holdings plc | Dividends paid to shareholders of HSBC Holdings plc | Dividends paid to shareholders of HSBC Holdings plc | Dividends paid to shareholders of HSBC Holdings plc |
|  | 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** | **Total** | Per share | Total |
|  | **$** | **$m** | $| $m |
| **Dividends paid on ordinary shares** |  |  |  |  |
| In respect of previous year: |  |  |  |  |
| – fourth interim dividend | **0.36** | **6397** | 0.31 | 5872 |
| In respect of current year: |  |  |  |  |
| – first interim dividend | **0.10** | **1750** | 0.10 | 1877 |
| – special dividend | **—** | **—** | 0.21 | 3942 |
| **Total** | **0.46** | **8147** | 0.62 | 11691 |
| Total coupons on capital securities classified as equity |  | **547** |  | 526 |
| **Dividends to shareholders** |  | **8694** |  | 12217 |

---

4Earnings per share

Basic earnings per ordinary share is calculated by dividing the profit attributable to ordinary shareholders of the parent company by the weighted

average number of ordinary shares outstanding, after deducting own shares held. Diluted earnings per ordinary share is calculated by dividing

the basic earnings, which require no adjustment for the effects of dilutive potential ordinary shares, by the weighted average number of ordinary

shares outstanding, excluding own shares held, plus the weighted average number of ordinary shares that would be issued on conversion of

dilutive potential ordinary shares.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Basic and diluted earnings per share | Basic and diluted earnings per share | Basic and diluted earnings per share | Basic and diluted earnings per share | Basic and diluted earnings per share | Basic and diluted earnings per share | Basic and diluted earnings per share |
|  | Half-year to | Half-year to | Half-year to | Half-year to | Half-year to | Half-year to |
|  | **30 Jun 2025** | **30 Jun 2025** | **30 Jun 2025** | 30 Jun 2024 | 30 Jun 2024 | 30 Jun 2024 |
|  | **Profit** | **Number**<br>**of shares**<br>| **Amount**<br> **per share**<br>| Profit | Number <br>of shares<br>| Amount<br> per share<br>|
|  | **$m** | **(millions)** | **$** | $m | (millions) | $|
| Basic<sup>1</sup> | **11510** | **17646** | **0.65** | 16586 | 18666 | 0.89 |
| Effect of dilutive potential ordinary shares |  | **126** |  |  | 120 |  |
| **Diluted**<sup>1</sup> | **11510** | **17772** | **0.65** | 16586 | 18786 | 0.88 |

---

1Weighted average number of ordinary shares outstanding (basic) or assuming dilution (diluted).

5Segmental analysis

The Group Operating Committee is considered to be the Chief Operating Decision Maker ('CODM') for the purposes of identifying the Group's

reportable segments. Business segments results are assessed by the CODM on the basis of constant currency performance that removes the

effects of currency translation from reported results. Therefore, we disclose these results on a constant currency basis as required by IFRS

Accounting Standards. The income statement for the half-year to 30 June 2024 is converted at the average rate of exchange for 2025, and the

balance sheets at 30 June 2024 and 31 December 2024 at the prevailing rates of exchange on 30 June 2025.

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 infrastructures 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.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **85** |

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---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Our business segments

Following our organisational announcement in October 2024, effective from 1 January 2025, the Group's reportable segments under IFRS 8

'Operating Segments' comprise four businesses along with Corporate Centre. These replace our previously reported operating segments up to

31 December 2024.

–Hong Kong: The Hong Kong business comprises Retail Banking and Wealth and Commercial Banking of HSBC Hong Kong and Hang Seng

Bank.

–UK: The UK business comprises UK Personal Banking (including first direct and M&S Bank) and UK Commercial Banking including HSBC

Innovation Bank.

–Corporate and Institutional Banking ('CIB'): CIB is formed from the integration of our Commercial Banking business (outside the UK and Hong

Kong) with our Global Banking and Markets business.

–International Wealth and Premier Banking ('IWPB'): IWPB comprises Premier banking outside of Hong Kong and the UK, our Private Bank,

and our wealth manufacturing businesses of Asset Management and Insurance.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| HSBC constant currency profit before tax and balance sheet data | HSBC constant currency profit before tax and balance sheet data | HSBC constant currency profit before tax and balance sheet data | HSBC constant currency profit before tax and balance sheet data | HSBC constant currency profit before tax and balance sheet data | HSBC constant currency profit before tax and balance sheet data | HSBC constant currency profit before tax and balance sheet data |
|  | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** | **Half-year to 30 Jun 2025** |
|  | **Hong**<br> **Kong**<br>| **UK** | **CIB** | **IWPB** | **Corporate**<br>**Centre**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| **Net operating income/(expense) before change in expected credit** <br>**losses and other credit impairment charges**<sup>1,2</sup><br>| **7848** | **6228** | **14117** | **7011** | **(1082)** | **34122** |
| – external | **5037** | **6678** | **19648** | **5964** | **(3205)** | **34122** |
| – inter-segment | **2811** | **(450)** | **(5531)** | **1047** | **2123** | **—** |
| – of which: net interest income/(expense)<sup>3</sup> | **5875** | **5306** | **7014** | **3657** | **(5031)** | **16821** |
| Change in expected credit losses and other credit impairment charges | **(864)** | **(323)** | **(299)** | **(453)** | **(2)** | **(1941)** |
| **Net operating income/(expense)** | **6984** | **5905** | **13818** | **6558** | **(1084)** | **32181** |
| Total operating expenses | **(2310)** | **(2624)** | **(7456)** | **(4468)** | **(164)** | **(17022)** |
| **Operating profit/(loss)** | **4674** | **3281** | **6362** | **2090** | **(1248)** | **15159** |
| Share of profit in associates and joint ventures less impairment<sup>2</sup> | **—** | **—** | **—** | **2** | **649** | **651** |
| **Constant currency profit/(loss) before tax** | **4674** | **3281** | **6362** | **2092** | **(599)** | **15810** |
|  | **%** | **%** | **%** | **%** | **%** | **%** |
| Share of HSBC's constant currency profit/(loss) before tax | **29.6** | **20.8** | **40.2** | **13.2** | **(3.8)** | **100.0** |
| Constant currency cost efficiency ratio  | **29.4** | **42.1** | **52.8** | **63.7** | **(15.2)** | **49.9** |
| **Constant currency balance sheet data** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| Loans and advances to customers (net) | **230139** | **299631** | **304240** | **147523** | **189** | **981722** |
| Interests in associates and joint ventures | **—** | **—** | **116** | **526** | **27560** | **28202** |
| Total external assets | **433153** | **443023** | **1763915** | **435437** | **138843** | **3214371** |
| Customer accounts | **517406** | **360494** | **564847** | **275504** | **353** | **1718604** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Half-year to 30 Jun 2024<sup>4</sup> | Half-year to 30 Jun 2024<sup>4</sup> | Half-year to 30 Jun 2024<sup>4</sup> | Half-year to 30 Jun 2024<sup>4</sup> | Half-year to 30 Jun 2024<sup>4</sup> | Half-year to 30 Jun 2024<sup>4</sup> |
| Net operating income before change in expected credit losses and other <br>credit impairment charges<sup>1</sup><br>| 7432 | 5994 | 13333 | 6933 | 3365 | 37057 |
| – external | 4769 | 6280 | 19696 | 5689 | 623 | 37057 |
| – inter-segment | 2663 | (286) | (6363) | 1244 | 2742 |  |
| – of which: net interest income/(expense)<sup>3</sup> | 5928 | 5026 | 7314 | 4131 | (5865) | 16534 |
| Change in expected credit losses and other credit impairment charges | (338) | (58) | (175) | (416) | (6) | (993) |
| Net operating income | 7094 | 5936 | 13158 | 6517 | 3359 | 36064 |
| Total operating expenses | (2340) | (2403) | (7037) | (4277) | (135) | (16192) |
| Operating profit | 4754 | 3533 | 6121 | 2240 | 3224 | 19872 |
| Share of profit in associates and joint ventures |  |  |  | 27 | 1592 | 1619 |
| Constant currency profit before tax | 4754 | 3533 | 6121 | 2267 | 4816 | 21491 |
|  | % | % | % | % | % | % |
| Share of HSBC's constant currency profit before tax | 22.1 | 16.4 | 28.5 | 10.6 | 22.4 | 100.0 |
| Constant currency cost efficiency ratio  | 31.5 | 40.1 | 52.8 | 61.7 | 4.0 | 43.7 |
| Constant currency balance sheet data | $m | $m | $m | $m | $m | $m |
| Loans and advances to customers (net) | 236309 | 286915 | 300392 | 140795 | 8368 | 972779 |
| Interests in associates and joint ventures |  |  | 132 | 561 | 28047 | 28740 |
| Total external assets | 413491 | 428708 | 1702163 | 399795 | 140213 | 3084370 |
| Customer accounts | 474140 | 352573 | 558629 | 266148 | 421 | 1651911 |

---

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

2Amount in 'Net operating income before change in expected credit losses and other credit impairment charges' includes a loss of $1.1bn inclusive of reserves

recycling as a result of the dilution of our shareholding in BoCom. We have also recognised a $1.0bn impairment loss following an impairment test on the

carrying value of the Group's investment in BoCom in 'Share of profit in associates and joint ventures less impairment'. See Note 10 on page <u>[93](#i8e8ecbd1e3414dedb6f068494c12f9d9_550)</u>.

3Net interest expense recognised in the Corporate Centre includes 1H25: $4.7bn (1H24: $5.5bn) of interest expense in relation to the internal cost to fund trading

and fair value net assets; and the funding cost of foreign exchange swaps in our Markets Treasury function.

4Comparative information for the prior year has been re-presented to reflect the Group's revised segment structure, which became effective on 1 January 2025.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **86** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Reported external net operating income is attributed to countries and territories 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 |
| **Reported external net operating income by country/territory** | **34122** | 37292 |
| – UK<sup>1</sup> | **6270** | 6247 |
| – Hong Kong | **11490** | 10393 |
| – US | **2313** | 2146 |
| – Mainland China | **67** | 1246 |
| – other countries/territories | **13982** | 17260 |

---

1UK includes HSBC UK Bank plc (ring-fenced bank), HSBC Bank plc (non-ring-fenced bank), the ultimate holding company, HSBC Holdings plc, and the ServCo

group.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Constant currency results reconciliation | Constant currency results reconciliation | Constant currency results reconciliation | Constant currency results reconciliation | Constant currency results reconciliation |
|  | **30 Jun 2025** | 30 Jun 2024 | 30 Jun 2024 | 30 Jun 2024 |
|  | **Reported and** <br>**constant currency**<br>| Constant <br>currency<br>| Currency <br>translation<br>| Reported |
|  | **$m** | $m | $m | $m |
| Revenue<sup>1,2</sup> | **34122** | 37057 | (235) | 37292 |
| ECL | **(1941)** | (993) | 73 | (1066) |
| Operating expenses | **(17022)** | (16192) | 104 | (16296) |
| Share of profit in associates and joint ventures less impairment<sup>2</sup> | **651** | 1619 | (7) | 1626 |
| **Profit before tax** | **15810** | 21491 | (65) | 21556 |

---

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

2Amount in 1H25 in 'Revenue' includes a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in BoCom. We have also

recognised a $1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in BoCom in 'Share of profit in associates and

joint ventures less impairment'. See Note 10 on page <u>[93](#i8e8ecbd1e3414dedb6f068494c12f9d9_550)</u>.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Constant currency balance sheet reconciliation | Constant currency balance sheet reconciliation | Constant currency balance sheet reconciliation | Constant currency balance sheet reconciliation | Constant currency balance sheet reconciliation | Constant currency balance sheet reconciliation | Constant currency balance sheet reconciliation | Constant currency balance sheet reconciliation |
|  | **At 30 Jun 2025** | At 30 Jun 2024 | At 30 Jun 2024 | At 30 Jun 2024 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Reported and** <br>**constant currency**<br>| Constant <br>currency<br>| Currency <br>translation<br>| Reported | Constant <br>currency<br>| Currency <br>translation<br>| Reported |
|  | **$m** | $m | $m | $m | $m | $m | $m |
| Loans and advances to customers (net) | **981722** | 972779 | 34522 | 938257 | 974647 | 43989 | 930658 |
| Interests in associates and joint ventures | **28202** | 28740 | 275 | 28465 | 29273 | 364 | 28909 |
| Total external assets | **3214371** | 3084370 | 109367 | 2975003 | 3152674 | 135626 | 3017048 |
| Customer accounts | **1718604** | 1651911 | 58077 | 1593834 | 1726199 | 71244 | 1654955 |

---

---

| | | |
|:---|:---|:---|
| Notable items | Notable items | Notable items |
|  | Half-year to | Half-year to |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| **Revenue** |  |  |
| Disposals, wind-downs, acquisitions and related costs<sup>1</sup> | **(139)** | 3571 |
| Dilution loss of interest in BoCom associate<sup>2</sup> | **(1136)** |  |
| **Operating expenses** |  |  |
| Disposals, wind-downs, acquisitions and related costs | **(227)** | (101) |
| Restructuring and other related costs<sup>3</sup> | **(616)** | 19 |
| **Impairment losses of interest in BoCom associate**<sup>2</sup> | **(1000)** |  |

---

1Amount in 1H25 include fair value losses on ADRs in Galicia received as a part of the sale consideration for HSBC Argentina, which were sold in 2Q25. Amount

in 1H24 includes a $4.8bn gain on disposal of our banking business in Canada, inclusive of a $0.3bn gain on the foreign exchange hedging of the sale proceeds,

the recycling of $0.6bn in foreign currency translation reserve losses and $0.4bn of other reserves recycling losses. This was partly offset by a $1.2bn

impairment recognised in relation to the sale of our business in Argentina.

2Amount in 1H25 in 'Dilution loss of interest in BoCom associate' include a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our

shareholding in BoCom. We have also recognised a $1.0bn impairment loss following an impairment test on the carrying value of the Group's investment in

BoCom in 'Impairment losses of interest in BoCom associate'. See Note 10 on page <u>[93](#i8e8ecbd1e3414dedb6f068494c12f9d9_550)</u>.

3Amounts relate to restructuring provisions recognised in 2025 as well as reversals of restructuring provisions recognised during 2022.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **87** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

6Fair values of financial instruments carried at fair value

The accounting policies, control framework and hierarchy used to determine fair values at 30 June 2025 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 |  |  |  |  |
|  | **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 |
|  |  | **Valuation techniques** | **Valuation techniques** |  |  | Valuation techniques | Valuation techniques |  |
|  | **Quoted**<br>**market** <br>**price**<br> **Level 1**<br>| **Using**<br>**observable** <br>**inputs**<br>**Level 2**<br>| **With**<br> **significant**<br>**unobservable** <br>**inputs**<br>**Level 3**<br>| **Total** | Quoted<br>market price<br> Level 1<br>| Using<br>observable <br>inputs<br>Level 2<br>| With <br>significant<br>unobservable <br>inputs<br>Level 3<br>| Total |
| **Recurring fair value measurements** | **$m** | **$m** | **$m** | **$m** | $m | $m | $m | $m |
| **Assets** |  |  |  |  |  |  |  |  |
| Trading assets | **247679** | **80843** | **5223** | **333745** | 236593 | 71574 | 6675 | 314842 |
| Financial assets designated and otherwise <br>mandatorily measured at fair value through <br>profit or loss<br>| **46797** | **57555** | **24590** | **128942** | 39331 | 56694 | 19744 | 115769 |
| Derivatives | **1271** | **245767** | **2634** | **249672** | 1859 | 264629 | 2149 | 268637 |
| Financial investments | **302583** | **77043** | **2120** | **381746** | 258371 | 78088 | 2734 | 339193 |
| **Liabilities** |  |  |  |  |  |  |  |  |
| Trading liabilities | **47182** | **23424** | **47** | **70653** | 42038 | 23160 | 784 | 65982 |
| Financial liabilities designated at fair value | **2526** | **152043** | **9020** | **163589** | 2152 | 127458 | 9117 | 138727 |
| Derivatives | **2072** | **251858** | **3671** | **257601** | 1088 | 260518 | 2842 | 264448 |

---

The table below provides the fair value levelling of assets held for sale and liabilities of disposal groups that have been classified as held for sale

in accordance with IFRS 5. For further details, see Note 15.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| 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 June 2025** | **At 30 June 2025** | **At 30 June 2025** | **At 30 June 2025** | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 | At 31 Dec 2024 |
|  |  | **Valuation techniques** | **Valuation techniques** |  |  | Valuation techniques | Valuation techniques |  |
|  | **Quoted**<br>**market** <br>**price**<br> **Level 1**<br>| **Using**<br>**observable** <br>**inputs**<br>**Level 2**<br>| **With**<br> **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<br> significant<br>unobservable <br>inputs<br>Level 3<br>| Total |
| **Recurring fair value measurements** | **$m** | **$m** | **$m** | **$m** | $m | $m | $m | $m |
| **Assets** |  |  |  |  |  |  |  |  |
| Trading assets | **—** | **—** | **—** | **—** |  |  |  |  |
| Financial assets designated and otherwise <br>mandatorily measured at fair value through <br>profit or loss<br>| **3060** | **11246** | **2666** | **16972** | 2967 | 9018 | 2575 | 14560 |
| Derivatives | **—** | **51** | **—** | **51** |  | 36 |  | 36 |
| Financial investments | **3193** | **12151** | **510** | **15854** | 2651 | 5345 | 504 | 8500 |
| **Liabilities** |  |  |  |  |  |  |  |  |
| Trading liabilities | **—** | **—** | **—** | **—** |  |  |  |  |
| Financial liabilities designated at fair value | **—** | **13** | **—** | **13** |  | 130 |  | 130 |
| Derivatives | **—** | **12** | **—** | **12** |  | 19 |  | 19 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| 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** <br>**otherwise mandatorily** <br>**measured at fair value**<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 | **6032** | **2596** | **703** | **—** | **94** | **—** | **—** |
| Transfers from Level 2 to Level 1 | **7019** | **4812** | **2794** | **—** | **210** | **—** | **—** |
| At 31 Dec 2024 |  |  |  |  |  |  |  |
| Transfers from Level 1 to Level 2 | 13511 | 9246 | 1540 |  | 191 |  |  |
| Transfers from Level 2 to Level 1 | 10752 | 6060 | 3042 |  | 159 |  |  |

---

Transfers between levels of the fair value hierarchy are deemed to occur at the end of each quarterly reporting period. Transfers into and out of

levels of the fair value hierarchy are primarily attributable to observability of valuation inputs and price transparency.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **88** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Fair value adjustments

Fair value adjustments take into consideration additional factors not incorporated within the primary product valuation model that would

otherwise be considered by a market participant. Adjustments are calculated using model infrastructure including those within primary valuation

systems. We classify fair value adjustments as either 'risk-related' or 'model-related'. The majority of these adjustments relate to MSS.

Movements in the amount of fair value adjustments do not necessarily translate in equivalent movements of profits or losses within the income

statement, as these movements can be compensated by other related profit or loss effects. For example, as models are enhanced, fair value

adjustments may no longer be required. Similarly, fair value adjustments will decrease when the related positions are unwound, but this may

not result in profit or loss.

---

| | | |
|:---|:---|:---|
| Fair value adjustments | Fair value adjustments | Fair value adjustments |
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$m** | $m |
| **Type of adjustment** |  |  |
| Risk-related | **658** | 669 |
| – bid-offer | **392** | 368 |
| – uncertainty | **112** | 101 |
| – credit valuation adjustment | **145** | 153 |
| – debit valuation adjustment | **(23)** | (24) |
| – funding fair value adjustment | **32** | 71 |
| Model-related | **73** | 50 |
| – model limitation | **73** | 50 |
| Inception profit (Day 1 P&L reserves) | **113** | 92 |
| **Total** | **844** | 811 |

---

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>| **Trading** <br>**assets**<br>| **Designated and** <br>**otherwise mandatorily** <br>**measured at fair value** <br>**through profit or loss**<br>| **Derivatives** | **Total** | **Trading** <br>**liabilities**<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>| **587** | **1** | **19363** | **—** | **19951** | **—** | **1** | **—** | **1** |
| Asset-backed securities | **160** | **171** | **—** | **—** | **331** | **—** | **—** | **—** | **—** |
| Structured notes | **—** | **—** | **—** | **—** | **—** | **—** | **9017** | **—** | **9017** |
| Other derivatives | **—** | **—** | **—** | **2634** | **2634** | **—** | **—** | **3671** | **3671** |
| Other portfolios | **1373** | **5051** | **5227** | **—** | **11651** | **47** | **2** | **—** | **49** |
| **At 30 Jun 2025** | **2120** | **5223** | **24590** | **2634** | **34567** | **47** | **9020** | **3671** | **12738** |
| Private equity including <br>strategic investments<br>| 552 | 1 | 17705 |  | 18258 |  | 1 |  | 1 |
| Asset-backed securities | 182 | 198 |  |  | 380 |  |  |  |  |
| Structured notes |  |  | 3 |  | 3 |  | 9113 |  | 9113 |
| Other derivatives |  |  |  | 2149 | 2149 |  |  | 2842 | 2842 |
| Other portfolios | 2000 | 6476 | 2036 |  | 10512 | 784 | 3 |  | 787 |
| At 31 Dec 2024 | 2734 | 6675 | 19744 | 2149 | 31302 | 784 | 9117 | 2842 | 12743 |

---

The basis for determining the fair value of the financial instruments in the table above is explained on page 389 of the Annual Report and

Accounts 2024.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **89** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

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** | **2734** | **6675** | **19744** | **2149** | **784** | **9117** | **2842** |
| Total gains or losses recognised in profit or loss  | **1** | **(37)** | **912** | **605** | **(20)** | **112** | **893** |
| – net income or losses from financial instruments held for <br>trading or managed on a fair value basis<br>| **—** | **(37)** | **—** | **605** | **(20)** | **112** | **893** |
| – net income from assets and liabilities of insurance <br>businesses, including related derivatives, measured at <br>fair value through profit or loss<br>| **—** | **—** | **867** | **—** | **—** | **—** | **—** |
| – changes in fair value of other financial instruments <br>mandatorily measured at fair value through profit or loss<br>| **—** | **—** | **45** | **—** | **—** | **—** | **—** |
| – gains less losses from financial investments held at fair <br>value through other comprehensive income<br>| **1** | **—** | **—** | **—** | **—** | **—** | **—** |
| Total gains/(losses) recognised in other comprehensive <br>income ('OCI')<sup>1</sup><br>| **238** | **266** | **(76)** | **195** | **22** | **419** | **237** |
| – financial investments: fair value gains/(losses) | **35** | **—** | **—** | **—** | **—** | **1** | **—** |
| – exchange differences  | **203** | **266** | **(76)** | **195** | **22** | **418** | **237** |
| Purchases  | **880** | **2312** | **2003** | **—** | **58** | **—** | **—** |
| New issuances  | **—** | **1** | **—** | **—** | **—** | **2966** | **—** |
| Sales  | **(127)** | **(1541)** | **(75)** | **—** | **(12)** | **—** | **—** |
| Settlements  | **(313)** | **(1419)** | **(182)** | **(404)** | **(318)** | **(2355)** | **(341)** |
| Transfers out  | **(1478)** | **(1690)** | **(184)** | **(300)** | **(482)** | **(2826)** | **(464)** |
| Transfers in<sup>2</sup> | **185** | **656** | **2448** | **389** | **15** | **1587** | **504** |
| **At 30 Jun 2025** | **2120** | **5223** | **24590** | **2634** | **47** | **9020** | **3671** |
| Unrealised gains or losses recognised in profit or loss <br>relating to assets and liabilities held at 30 Jun 2025<br>| **—** | **55** | **116** | **699** | **28** | **(179)** | **(1307)** |
| – net income or losses from financial instruments held for <br>trading or managed on a fair value basis<br>| **—** | **55** | **—** | **699** | **28** | **—** | **(1307)** |
| – changes in fair value of other financial instruments <br>mandatorily measured at fair value through profit or loss<br>| **—** | **—** | **116** | **—** | **—** | **(179)** | **—** |
| At 1 Jan 2024 | 2618 | 4306 | 19788 | 2069 | 478 | 10928 | 2569 |
| Total gains or losses recognised in profit or loss | (11) | (7) | 270 | 323 | (4) | 345 | 865 |
| – net income or losses from financial instruments held for <br>trading or managed on a fair value basis<br>|  | (7) |  | 323 | (4) | 345 | 865 |
| – net income from assets and liabilities of insurance <br>businesses, including related derivatives, measured at <br>fair value through profit or loss<br>|  |  | 223 |  |  |  |  |
| – changes in fair value of other financial instruments <br>mandatorily measured at fair value through profit or loss<br>|  |  | 47 |  |  |  |  |
| – gains less losses from financial investments held at fair <br>value through other comprehensive income<br>| (11) |  |  |  |  |  |  |
| Total gains/(losses) recognised in other comprehensive <br>income ('OCI')<br>| (73) | (48) | (102) | (22) | (4) | (77) | (30) |
| – financial investments: fair value gains/(losses) | (18) |  |  |  |  | 31 |  |
| – exchange differences | (55) | (48) | (102) | (22) | (4) | (108) | (30) |
| Purchases | 351 | 1030 | 3694 |  | 135 |  |  |
| New issuances |  |  |  |  |  | 3378 |  |
| Sales | (30) | (633) | (183) |  | (293) |  |  |
| Settlements | (406) | (615) | (1738) | (147) | (164) | (1898) | (136) |
| Transfers out | (80) | (281) | (213) | (265) | (29) | (1039) | (353) |
| Transfers in | 45 | 328 | 105 | 553 | 11 | 522 | 566 |
| At 30 Jun 2024 | 2414 | 4080 | 21621 | 2511 | 130 | 12159 | 3481 |
| Unrealised gains or losses recognised in profit or loss <br>relating to assets and liabilities held at 30 Jun 2024<br>|  | (12) | (302) | (2157) | 5 | (167) | (541) |
| – net income or losses from financial instruments held for <br>trading or managed on a fair value basis<br>|  | (12) |  | (2157) | 5 |  | (541) |
| – changes in fair value of other financial instruments <br>mandatorily measured at fair value through profit or loss<br>|  |  | (302) |  |  | (167) |  |

---

1Included in 'financial investments: fair value gains/(losses)' in the current year and 'exchange differences' in the consolidated statement of comprehensive

income.

2Includes $2.3bn of transfers in representing enhancements to the application of our levelling methodology, primarily impacting our Insurance business.

Transfers between levels of the fair value hierarchy are deemed to occur at the end of each quarterly reporting period. Transfers into and out of

levels of the fair value hierarchy are primarily attributable to observability of valuation inputs and price transparency.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **90** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Effect of changes in significant unobservable assumptions to reasonably

possible alternatives

The following table shows the sensitivity of Level 3 fair values to reasonably possible alternative assumptions:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Sensitivity of fair values to reasonably possible alternative assumptions | Sensitivity of fair values to reasonably possible alternative assumptions | Sensitivity of fair values to reasonably possible alternative assumptions | Sensitivity of fair values to reasonably possible alternative assumptions | Sensitivity of fair values to reasonably possible alternative assumptions |
|  | **Reflected in profit or loss** | **Reflected in 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>|
|  | **$m** | **$m** | **$m** | **$m** |
| Derivatives, trading assets and trading liabilities<sup>1</sup> | **524** | **(309)** | **—** | **—** |
| Financial assets and liabilities designated and otherwise mandatorily measured at fair value <br>through profit or loss<br>| **1873** | **(1470)** | **—** | **—** |
| Financial investments | **19** | **(19)** | **52** | **(55)** |
| **At 30 Jun 2025** | **2416** | **(1798)** | **52** | **(55)** |
| Derivatives, trading assets and trading liabilities<sup>1</sup> | 546 | (309) |  |  |
| Financial assets and liabilities designated and otherwise mandatorily measured at fair value <br>through profit or loss<br>| 1664 | (1255) |  |  |
| Financial investments | 18 | (18) | 42 | (45) |
| At 30 Jun 2024 | 2228 | (1582) | 42 | (45) |
| Derivatives, trading assets and trading liabilities<sup>1</sup> | 481 | (313) |  |  |
| Financial assets and liabilities designated and otherwise mandatorily measured at fair value <br>through profit or loss<br>| 1434 | (1141) |  |  |
| Financial investments | 21 | (21) | 47 | (50) |
| At 31 Dec 2024 | 1936 | (1475) | 47 | (50) |

---

1'Derivatives, trading assets and trading liabilities' are presented as one category to reflect the manner in which these financial instruments are risk-managed.

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 table above reflects the most

favourable or the most unfavourable change from varying the assumptions individually.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **91** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

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

391 and 392 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 |
|  | **Fair value** | **Fair value** | **Key valuation** <br>**techniques** | **Key unobservable** <br>**inputs** | **30 Jun 2025** | **30 Jun 2025** | 31 Dec 2024 | 31 Dec 2024 |
|  | **Assets** | **Liabilities** | **Key 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** | **Key valuation** <br>**techniques** | **Key unobservable** <br>**inputs** | **Lower** | **Higher** | Lower | Higher |
| Private equity including <br>strategic investments<sup>1</sup><br>| **19951** | **1** | **Price – Net asset value** | **Current Value/**<br>**Cost**<br>| **0** | **75** | 0 | 291 |
| Asset-backed securities  | **331** | **—** |  |  |  |  |  |  |
| – collateralised loan/debt obligation | **99** | **—** |  |  |  |  |  |  |
| – collateralised loan/debt obligation | **99** | **—** | **Market proxy** | **Price** | **0** | **100** | 0 | 97 |
| – other ABSs  | **232** | **—** | **Market proxy** | **Price** | **0** | **255** | 0 | 248 |
| Loans held for securitisation  | **—** | **—** |  |  |  |  |  |  |
| Structured notes  | **—** | **9017** |  |  |  |  |  |  |
| – equity-linked notes  | **—** | **6250** | **Model – Option model** | **Equity volatility** | **5%** | **67%** | 6% | 70% |
| – equity-linked notes  | **—** | **6250** | **Model – Option model** | **Equity correlation** | **10%** | **100%** | 15% | 100% |
| – foreign exchange ('FX')-linked <br>notes <br>| **—** | **993** | **Model – Option model** | **FX volatility** | **4%** | **19%** | 3% | 35% |
| – other structured notes | **—** | **1774** |  |  |  |  |  |  |
| Other derivatives  | **2634** | **3671** |  |  |  |  |  |  |
| – interest rate derivatives | **1000** | **1055** |  |  |  |  |  |  |
| securitisation swaps  | **143** | **324** | **Model – Discounted** <br>**cash flow**<br>| **Prepayment rate** | **5%** | **10%** | 5% | 10% |
| long-dated swaptions  | **89** | **91** | **Model – Option model** | **Interest rate** <br>**volatility**<br>| **9%** | **30%** | 9% | 30% |
| other interest rate derivatives | **768** | **640** |  |  |  |  |  |  |
| – FX derivatives | **547** | **470** |  |  |  |  |  |  |
| FX options  | **318** | **249** | **Model – Option model** | **FX volatility** | **1%** | **19%** | 1% | 26% |
| other foreign exchange derivatives | **229** | **221** |  |  |  |  |  |  |
| – equity derivatives | **819** | **1494** |  |  |  |  |  |  |
| long-dated single stock options  | **421** | **549** | **Model – Option model** | **Equity volatility** | **5%** | **119%** | 6% | 118% |
| other equity derivatives | **398** | **945** |  |  |  |  |  |  |
| – credit derivatives | **260** | **650** |  |  |  |  |  |  |
| total return swaps | **213** | **527** | **Market proxy** | **Price** | **73** | **106** | 0 | 104 |
| other credit derivatives | **47** | **123** |  |  |  |  |  |  |
| – other derivatives | **8** | **2** |  |  |  |  |  |  |
| Other portfolios  | **11651** | **49** |  |  |  |  |  |  |
| – repurchase agreements | **427** | **—** | **Model – Discounted** <br>**cash flow**<br>| **Interest rate curve** | **0%** | **3%** | 0% | 26% |
| – bonds | **6807** | **39** | **Market proxy** | **Price** | **0** | **126** | 0 | 140 |
| – loans and deposits | **2412** | **—** | **Market proxy** | **Price** | **0** | **111** | 0 | 103 |
| – other<sup>2</sup> | **2005** | **10** |  |  |  |  |  |  |
| **At 30 Jun 2025** | **34567** | **12738** |  |  |  |  |  |  |

---

1'Private equity including strategic investments' includes private equity, private credit and private equity funds, primarily held as part of our Insurance business and

for strategic investments.

2'Other' includes a range of smaller asset holdings.

7Fair 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 and non-trading repurchase and reverse repurchase agreements are explained on page

394 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 amount** | **Fair value** | Carrying amount | Fair value |
|  | **$m** | **$m** | $m | $m |
| **Assets** |  |  |  |  |
| Loans and advances to banks  | **107582** | **107585** | 102039 | 102055 |
| Loans and advances to customers  | **981722** | **975671** | 930658 | 917643 |
| Reverse repurchase agreements – non-trading  | **283204** | **283340** | 252549 | 252598 |
| Financial investments – at amortised cost | **166209** | **165142** | 153973 | 151060 |
| **Liabilities** |  |  |  |  |
| Deposits by banks  | **97782** | **97812** | 73997 | 74025 |
| Customer accounts  | **1718604** | **1718745** | 1654955 | 1655151 |
| Repurchase agreements – non-trading  | **195532** | **195498** | 180880 | 180873 |
| Debt securities in issue  | **102129** | **102898** | 105785 | 106643 |
| Subordinated liabilities  | **27569** | **30114** | 25958 | 28262 |

---

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **92** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Fair values of financial instruments not carried at fair value on the balance sheet – assets and disposal groups held for sale | Fair values of financial instruments not carried at fair value on the balance sheet – assets and disposal groups held for sale | Fair values of financial instruments not carried at fair value on the balance sheet – assets and disposal groups held for sale | Fair values of financial instruments not carried at fair value on the balance sheet – assets and disposal groups held for sale | Fair values of financial instruments not carried at fair value on the balance sheet – assets and disposal groups held for sale |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Carrying amount** | **Fair value** | Carrying amount | Fair value |
|  | **$m** | **$m** | $m | $m |
| **Assets** |  |  |  |  |
| Loans and advances to banks  | **169** | **169** | 144 | 144 |
| Loans and advances to customers  | **2287** | **2289** | 977 | 977 |
| Financial investments – at amortised cost | **—** | **—** |  |  |
| **Liabilities** |  |  |  |  |
| Deposits by banks  | **103** | **103** |  |  |
| Customer accounts  | **19088** | **19088** | 5399 | 5399 |

---

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.

---

| | |
|:---|:---|
| 8 | Derivatives |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Notional contract amounts and fair values of derivatives by product contract type held by HSBC | Notional contract amounts and fair values of derivatives by product contract type held by HSBC | Notional contract amounts and fair values of derivatives by product contract type held by HSBC | Notional contract amounts and fair values of derivatives by product contract type held by HSBC | Notional contract amounts and fair values of derivatives by product contract type held by HSBC | Notional contract amounts and fair values of derivatives by product contract type held by HSBC | Notional contract amounts and fair values of derivatives by product contract type held by HSBC | Notional contract amounts and fair values of derivatives by product contract type held by HSBC | Notional contract amounts and fair values of derivatives by product contract type held by HSBC |
|  | **Notional contract amount** | **Notional contract amount** | **Fair value amount** | **Fair value amount** | **Fair value amount** | **Fair value amount** | **Fair value amount** | **Fair value amount** |
|  | **Assets and liabilities** | **Assets and liabilities** | **Assets** | **Assets** | **Assets** | **Liabilities** | **Liabilities** | **Liabilities** |
|  | **Trading** | **Hedging** | **Trading** | **Hedging** | **Total** | **Trading** | **Hedging** | **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| Foreign exchange | **14089219** | **102052** | **119794** | **592** | **120386** | **120166** | **2114** | **122280** |
| Interest rate | **18843944** | **444352** | **216249** | **5315** | **221564** | **212818** | **5083** | **217901** |
| Equities | **868213** | **—** | **16443** | **—** | **16443** | **24133** | **—** | **24133** |
| Credit | **151437** | **—** | **1237** | **—** | **1237** | **2106** | **—** | **2106** |
| Commodity and other | **148870** | **—** | **4292** | **—** | **4292** | **5431** | **—** | **5431** |
| **Gross total fair values** | **34101683** | **546404** | **358015** | **5907** | **363922** | **364654** | **7197** | **371851** |
| Offset |  |  |  |  | **(114250)** |  |  | **(114250)** |
| **At 30 Jun 2025** | **34101683** | **546404** | **358015** | **5907** | **249672** | **364654** | **7197** | **257601** |
| Foreign exchange  | 11706591 | 82161 | 142055 | 2738 | 144793 | 133910 | 75 | 133985 |
| Interest rate  | 17316173 | 406109 | 209794 | 4790 | 214584 | 212980 | 4930 | 217910 |
| Equities  | 768732 |  | 17116 |  | 17116 | 20643 |  | 20643 |
| Credit  | 143136 |  | 1756 |  | 1756 | 1769 |  | 1769 |
| Commodity and other  | 118180 |  | 3134 |  | 3134 | 2887 |  | 2887 |
| Gross total fair values  | 30052812 | 488270 | 373855 | 7528 | 381383 | 372189 | 5005 | 377194 |
| Offset  |  |  |  |  | (112746) |  |  | (112746) |
| At 31 Dec 2024 | 30052812 | 488270 | 373855 | 7528 | 268637 | 372189 | 5005 | 264448 |

---

The notional contract amounts of derivatives held for trading purposes and derivatives designated in hedge accounting relationships indicate the

nominal value of transactions outstanding at the balance sheet date. They do not represent amounts at risk.

Hedge accounting derivatives

The notional contract amounts of derivatives held for hedge accounting purposes indicate the nominal value of transactions outstanding at the

balance sheet date, not amounts at risk.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Notional contract amounts of derivatives held for hedging purposes by product type | Notional contract amounts of derivatives held for hedging purposes by product type | Notional contract amounts of derivatives held for hedging purposes by product type | Notional contract amounts of derivatives held for hedging purposes by product type | Notional contract amounts of derivatives held for hedging purposes by product type |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Cash flow hedges** | **Fair value hedges** | Cash flow hedges | Fair value hedges |
|  | **$m** | **$m** | $m | $m |
| Foreign exchange | **58047** | **—** | 47194 |  |
| Interest rate | **207144** | **237208** | 215777 | 190332 |
| **Total** | **265191** | **237208** | 262971 | 190332 |

---

The Group applies hedge accounting in respect of certain consolidated net investments in foreign operations. Hedging is undertaken using

forward foreign exchange contracts or by financing with foreign currency borrowings. At 30 June 2025, the notional contract value of

outstanding derivative financial instruments designated as hedges of net investments in foreign operations was $44,005m (31 December 2024:

$34,967m).

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **93** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

---

| | |
|:---|:---|
| 9 | Financial investments |

---

---

| | | |
|:---|:---|:---|
| Carrying amounts of financial investments | Carrying amounts of financial investments | Carrying amounts of financial investments |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$m** | $m |
| Financial investments measured at fair value through other comprehensive income | **381746** | 339193 |
| – treasury and other eligible bills | **117390** | 112705 |
| – debt securities | **262226** | 224496 |
| – equity securities | **1697** | 1569 |
| – other instruments | **433** | 423 |
| Debt instruments measured at amortised cost | **166209** | 153973 |
| – treasury and other eligible bills | **21243** | 22148 |
| – debt securities | **144966** | 131825 |
| **At the end of the period** | **547955** | 493166 |

---

---

| | |
|:---|:---|
| 10 | Interests in associates and joint ventures |

---

At 30 June 2025, the carrying amount of HSBC's interests in associates and joint ventures was $28,202m (31 December 2024: $28,909m).

---

| | | | | |
|:---|:---|:---|:---|:---|
| Principal associates of HSBC | Principal associates of HSBC | Principal associates of HSBC | Principal associates of HSBC | Principal associates of HSBC |
|  | **At 30 Jun 2025** | **At 30 Jun 2025** | At 31 Dec 2024 | At 31 Dec 2024 |
|  | **Carrying amount** | **Fair value**<sup>1</sup> | Carrying amount | Fair value<sup>1</sup> |
|  | **$m** | **$m** | $m | $m |
| Bank of Communications Co., Limited | **21348** | **13145** | 22367 | 11631 |
| Saudi Awwal Bank | **5245** | **5724** | 5027 | 5705 |

---

1Principal associates are listed on recognised stock exchanges. The fair values are based on the quoted market prices of the shares held (Level 1 in the fair value

hierarchy).

---

| | | |
|:---|:---|:---|
| Share of profit in associates and joint ventures |  |  |
|  | Half year to  | Half year to  |
|  | **30 Jun 2025** | 30 Jun 2024 |
|  | **$m** | $m |
| Bank of Communications Co., Limited | **1260** | 1257 |
| Saudi Awwal Bank | **345** | 317 |
| Other associates and joint ventures | **46** | 52 |
| **Share of profit in associates and joint ventures** | **1651** | 1626 |
| Less: Impairment of interest in BoCom | **(1000)** |  |

---

Bank of Communications Co., Limited

The results for the period ended 30 June 2025 included a $1.1bn loss from the dilution of our shareholding and a $1.0bn impairment to the

carrying value of the Group's interest in BoCom.

The Group's interest in BoCom reduced from 19.03% to 16.00% following the completion of a capital issuance by BoCom on 17 June 2025.

The dilution of the Group's interest resulted in a pre-tax loss of $1.1bn, recognised in 'Other operating (expense)/income' in the Group's

consolidated income statement. The loss is not deductible for tax purposes as a consequence of our shareholding in BoCom being held for long-

term investment purposes.

In addition, the Group performed an impairment test on the carrying amount at 30 June 2025, which resulted in an impairment of $1.0bn, as the

recoverable amount as determined by a value-in-use calculation was lower than the carrying value, recognised within 'Impairment of interest in

associate'. Consistent with prior periods, our value-in-use calculation uses both historical experience and market participant views to estimate

future cash flows, relevant discount rates and associated capital assumptions.

We remain strategically committed to mainland China and continue our valued, strategic partnership with BoCom.

HSBC's Interest

The Group's investment in BoCom continues to be classified as an associate. Significant influence in BoCom was established with consideration

of all relevant factors, including the Group's latest shareholding, representation on BoCom's Board of Directors, and participation in a resource

and experience sharing agreement. Investments in associates are recognised using the equity method of accounting in accordance with IAS 28

'Investments in Associates and Joint Ventures', whereby the investment is initially recognised at cost and adjusted thereafter for the post-

acquisition change in the Group's share of associate's net assets. An impairment test is required if there is any indication of impairment or

reversal.

The fair value of the Group's investment in BoCom had been below its carrying amount. No impairment (or reversal) was required for the year

ended 31 December 2024.

If the Group did not have significant influence in BoCom, the investment would be carried at fair value rather than the current carrying amount.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **94** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Impairment testing

At 30 June 2025, the Group concluded that there were indications of impairment. As part of this assessment, the Group performed an

impairment test on the carrying amount with an updated VIU calculation, which resulted in an impairment of $1.0bn, as the recoverable amount

as determined by the VIU calculation was lower than the carrying amount. The impairment was recognised within 'Impairment of interest in

associate'. The carrying amount of the investment after impairment was $21.3bn (31 December 2024: $22.4bn) with a fair value of $13.1bn

(31 December 2024: $11.6bn). The impairment loss is not deductible for tax purposes.

Basis of recoverable amount

The VIU calculation uses discounted cash flow projections based on management's best estimates of future earnings available to ordinary

shareholders prepared in accordance with IAS 36 'Impairment of Assets'. Those cash flows used estimates based on BoCom's current

condition and so do not include estimated cash flows arising from uncommitted future actions that may affect the performance of the

investment, which will be considered at the relevant time should they arise. Significant management judgement is required in arriving at the

best estimate.

The VIU may increase or decrease depending on the effect of changes to model inputs. The main model inputs are described below and are

based on factors observed at period-end. The factors that could result in increases or reductions in the VIU include changes in BoCom's short-

term performance, a change in regulatory capital requirements or revisions to the forecast of BoCom's future profitability.

There are two main components to the VIU calculation. The first component is management's best estimate of BoCom's earnings. Forecast

earnings growth over the short to medium term continues to be lower than recent (within the last five years) actual growth, and reflects the

impact of recent macroeconomic, policy and industry factors in mainland China. As a result of management's intent to continue to retain its

investment for the long term, earnings beyond the short to medium term are extrapolated into perpetuity using a long-term growth rate to

derive a terminal value, which comprises the majority of the VIU. The second component is the capital maintenance charge ('CMC'), which is

management's forecast of the earnings that need to be withheld in order for BoCom to meet capital requirements over the forecast period,

meaning that CMC is deducted when arriving at management's estimate of future earnings available to ordinary shareholders. The CMC reflects

the revised capital requirements arising from revisions of the ratio of risk-weighted assets to total assets assumption. The principal inputs to the

CMC calculation include estimates of asset growth, the ratio of risk-weighted assets to total assets and the expected capital requirements. An

increase in the CMC as a result of a change to these principal inputs would reduce VIU. Additionally, management considers other qualitative

factors, to ensure that the inputs to the VIU calculation remain appropriate.

Key assumptions in value-in-use calculation

We used a number of assumptions in our VIU calculation, in accordance with the requirements of IAS 36:

–Long-term profit growth rate: 3.00% (31 December 2024: 3.00%) for periods after 2028, which does not exceed forecast GDP growth in

mainland China and is similar to forecasts by external analysts.

–Long-term asset growth rate: 3.25% (31 December 2024: 3.25%) for periods after 2028, which is the rate that assets are expected to grow

to achieve long-term profit growth of 3.00%.

–Discount rate: 8.08% (31 December 2024: 8.53%), which is based on a capital asset pricing model ('CAPM'), using market data. The

discount rate used is within the range of 7.1% to 8.9% (31 December 2024: 7.1% to 8.8%) indicated by the CAPM, and decreased primarily

as a consequence of a market-driven reduction in the risk-free rate.

–Expected credit losses ('ECL') as a percentage of loans and advances to customers: ranges from 0.74% to 0.88% (31 December 2024:

0.74% to 0.93%) in the short to medium term, reflecting reported credit experience in mainland China. For periods after 2028, the ratio is

0.87% (31 December 2024: 0.97%), reflecting the anticipated continuation of BoCom's lower average ECL as a percentage of loans and

advances to customers experienced in recent years.

–Risk-weighted assets as a percentage of total assets: ranges from 62.0% to 63.3% (31 December 2024: 62.0% to 62.5%) in the short to

medium term, reflecting higher risk-weights in the short term followed by an expected reversion to recent historical levels. For periods after

2028, the ratio is 62.0% (31 December 2024: 62.0%), which is similar to BoCom's actual results in recent years.

–Loans and advances to customers growth rate: ranges from 8.0% to 9.0% (31 December 2024: 7.5% to 9.5%) in the short to medium term,

which is similar to BoCom's actual results in recent years. Increases in the forecast growth rate of loans and advances to customers results

in higher forecast ECL.

–Operating income growth rate: ranges from 1.9% to 9.1% (31 December 2024: 0.1% to 9.9%) in the short to medium term, which is similar

to BoCom's actual results in recent years. The projected net interest income over the medium term reduced to reflect forecasted pressure

on net interest margin compared with the prior period, which led to a net reduction in the VIU.

–Cost-income ratio: ranges from 35.0% to 39.5% (31 December 2024: 34.6% to 39.8%) in the short to medium term. These ratios are similar

to BoCom's actual results in recent years and forecasts disclosed by external analysts.

–Long-term effective tax rate: 15.0% (31 December 2024: 15.0%) for periods after 2028, which is higher than the recent historical average,

and aligned to the minimum tax rate as proposed by the OECD/Group of 20 ('G20') Inclusive Framework on Base Erosion and Profit Shifting.

–Capital requirements: capital adequacy ratio of 12.5% (31 December 2024: 12.5%) and tier 1 capital adequacy ratio of 9.5% (31 December

2024: 9.5%), based on BoCom's capital risk appetite and capital requirements respectively.

The VIU is highly sensitive to the assumptions above. To indicate the scale of that sensitivity, we also disclose the reasonably possible range of

VIU-based changes to these assumptions. This is based on impacts arising from the favourable/unfavourable change in the earnings in the short

to medium term, the expected credit losses as a percentage of loans and advances to customers, and a 50bps increase/decrease in the

discount rate. At 30 June 2025, we estimate that the reasonably possible range of VIU is$11.0bn to $29.6bn (31 December 2024: $13.5bn to

$30.8bn), acknowledging that the fair value of the Group's investment has ranged from $6.8bn to $13.1bn over the last five years as at the date

of the impairment test. All other long-term assumptions, and the basis of the CMC, have been kept unchanged when determining the

reasonably possible range of the VIU.

Saudi Awwal Bank

The Group's investment in Saudi Awwal Bank ('SAB') is classified as an associate. HSBC is the largest shareholder in SAB with a shareholding

of 31%. Significant influence in SAB is established via representation on the Board of Directors. Investments in associates are recognised using

the equity method of accounting in accordance with IAS 28, as described previously for BoCom.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **95** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Impairment testing

There were no indicators of impairment at 30 June 2025. The fair value of the Group's investment in SAB of $5.7bn was above the carrying

amount of $5.2bn.

---

| | |
|:---|:---|
| 11 | Provisions |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Restructuring**<br>**costs**<br>| **Legal proceedings**<br>**and regulatory matters**<br>| **Customer**<br>**remediation**<br>| **Other**<br>**provisions**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** |
| **Provisions (excluding contractual commitments)** |  |  |  |  |  |
| At 1 Jan 2025 | 199 | 295 | 85 | 457 | 1036 |
| Additions | **647** | **79** | **6** | **69** | **801** |
| Amounts utilised | **(167)** | **(100)** | **(12)** | **(46)** | **(325)** |
| Unused amounts reversed | **(50)** | **(29)** | **(26)** | **(21)** | **(126)** |
| Exchange and other movements | **27** | **24** | **5** | **11** | **67** |
| **At 30 Jun 2025** | **656** | **269** | **58** | **470** | **1453** |
| **Contractual commitments**<sup>1</sup> |  |  |  |  |  |
| At 1 Jan 2025 |  |  |  |  | 688 |
| Net change in expected credit loss provision and other movements |  |  |  |  | **(16)** |
| **At 30 Jun 2025** |  |  |  |  | **672** |
| **Total provisions** |  |  |  |  |  |
| At 31 Dec 2024 |  |  |  |  | 1724 |
| **At 30 Jun 2025** |  |  |  |  | **2125** |

---

1Contractual commitments include the expected credit loss provision in relation to off-balance sheet financial guarantee contracts and commitments where HSBC

has become party to an irrevocable commitment, as defined under IFRS 9 'Financial Instruments'; and provisions for performance and other guarantee contracts.

Further details of 'Legal proceedings and regulatory matters' are set out in Note 13. 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 12. 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 55.

Brazil PIS and COFINS tax matters

Beginning in the late 1990s, HSBC Bank Brasil S.A. – Banco Múltiplo ('HSBC Brazil') and other financial services firms brought legal proceedings

in Brazil challenging the assessment of Contribution to the Social Integration Programme ('PIS') and Contribution for the Financing of Social

Security ('COFINS') taxes, which are federal taxes imposed on gross revenues earned by legal entities in Brazil. The Supreme Court of Brazil

selected three cases – one involving an insurer, in 2007, and two involving other banks, in 2011 – to set standards that would apply to all of

these proceedings. In June 2023, the court ruled against the financial services firms in all three cases. The standards set by the court in this

ruling have not yet been applied to HSBC Brazil's legacy cases, liability for which remained with HSBC after the sale of HSBC's operations in

Brazil to Bradesco in 2016. In May 2025, the first instance judicial court delivered a favourable judgment in HSBC Brazil's second largest legacy

PIS and COFINS case. This judgment is subject to appeal by the Brazilian Tax Authority. There are many factors that may affect the range of

outcomes and any resulting financial impact for HSBC. Based upon the information currently available, a provision was recognised in respect of

one legacy case. The remaining additional tax liability subject to challenge on all legacy PIS and COFINS cases is up to $0.4bn, and no provision

has been booked for this amount.

12Contingent liabilities, contractual commitments and guarantees

---

| | | |
|:---|:---|:---|
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$m** | $m |
| Guarantees and other contingent liabilities: |  |  |
| – financial guarantees | **16605** | 16998 |
| – performance and other guarantees | **98103** | 92723 |
| – other contingent liabilities  | **299** | 298 |
| **At the end of the period** | **115007** | 110019 |
| Commitments:<sup>1</sup> |  |  |
| – documentary credits and short-term trade-related transactions | **6489** | 7096 |
| – forward asset purchases and forward deposits placed  | **110784** | 61017 |
| – standby facilities, credit lines and other commitments to lend  | **822726** | 793465 |
| **At the end of the period** | **939999** | 861578 |

---

1Includes $691,705m of commitments at 30 June 2025 (31 December 2024: $619,367m), to which the impairment requirements in IFRS 9 are applied where

HSBC has become party to an irrevocable commitment.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **96** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

The preceding table discloses the nominal principal amounts of off-balance sheet liabilities and commitments for the Group, which represent the

maximum amounts at risk should the contracts be fully drawn upon and the 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. The expected credit loss provision relating to guarantees and commitments under IFRS 9 is disclosed in Note 11.

The majority of the guarantees have a term of less than one year, while guarantees with terms of more than one year are subject to HSBC's

annual credit review process.

Contingent liabilities arising from legal proceedings and regulatory and other matters against Group companies are excluded from this note but

are disclosed in Notes 11 and 13.

13Legal proceedings and regulatory matters

HSBC 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, HSBC 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 11). 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.

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 to predict the resolution of these matters, including the timing or

any possible impact on HSBC, 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'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 to predict the resolution of these matters, including the timing or

any possible impact on HSBC, which could be significant.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **97** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

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

withfive 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 to predict the resolution of the pending matters, including the

timing or any possible impact on HSBC, which could be significant.

Foreign exchange-related investigations and litigation

In December 2016, Brazil's Administrative Council of Economic Defense initiated an investigation into the onshore foreign exchange market and

identified a number of banks, including HSBC, as subjects of its investigation, which remains ongoing. Lawsuits alleging foreign exchange-

related misconduct remain pending against HSBC and other banks in courts in Brazil.

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 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.

In February 2024, HSBC Bank plc and HSBC Holdings 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 to predict the resolution of these matters, including the timing or

any possible impact on HSBC, 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 to predict the resolution of these matters, including the timing or

any possible impact on HSBC, which could be significant.

Tax-related investigations

Since 2023, the French National Financial Prosecutor has been investigating a number of banks, including HSBC Continental Europe 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 HSBC Continental Europe 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 to predict the resolution of these matters, including the timing or

any possible impact on HSBC, which could be significant.

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.

Korean short selling indictment

In March 2024, the Korean Prosecutors' Office issued a criminal indictment against The Hongkong and Shanghai Banking Corporation Limited

('HBAP') and three current and former employees for breaching short selling rules under the Financial Investment Services and Capital Markets

Act in connection with trades carried out between August 2021 and December 2021. In February 2025, the Korean court acquitted HBAP of all

charges. The Korean Prosecutors' Office has appealed this decision. Proceedings against the individual defendants have been suspended.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **98** |

---

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| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

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 to predict the resolution of these matters, including the timing or

any possible impact on HSBC, which could be significant.

First Citizens litigation

In May 2023, First-Citizens Bank & Trust Company ('First Citizens') brought a lawsuit in the US District Court for the Northern District of

California against various HSBC companies and seven US-based HSBC employees who had previously worked for Silicon Valley Bank ('SVB').

The lawsuit seeks $1bn in damages and alleges, among other things, that the various HSBC companies conspired with the individual defendants

to solicit employees from First Citizens and that the individual defendants took confidential information belonging to SVB and/or First Citizens. In

July 2024, the court dismissed several of First Citizens' claims and also dismissed certain defendants for lack of jurisdiction, but allowed limited

discovery into whether some of these defendants may be subject to jurisdiction. The remaining claims are proceeding against certain

defendants.

Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of this matter, including the timing or any

possible impact on HSBC, which could be significant.

US mortgage securitisation litigation

Beginning in 2014, a number of lawsuits were filed in various state and federal courts in the US against HSBC Bank USA, as a trustee of more

than 280 mortgage securitisation trusts, seeking unspecified damages for losses in collateral value allegedly sustained by the trusts. Nearly all of

these lawsuits have either been settled or dismissed; oneaction remains pending in a New York state court.

HSBC Bank USA and certain of its affiliates continue to defend a mortgage loan repurchase action seeking unspecified damages and specific

performance brought by the trustee of a mortgage securitisation trust in New York state court.

Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of these matters, including the timing or

any possible impact on HSBC, which could be significant.

Mexican government bond litigation

HSBC Mexico S.A. and other banks are named as defendants in a consolidated putative class action pending in the US District Court for the

Southern District of New York alleging anti-competitive conduct related to Mexican government bond transactions between 2010 and 2014 and

seeking unspecified damages. In January 2025, the court denied the defendants' motion to dismiss the plaintiffs' third amended complaint, and

this action is proceeding.

Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of this matter, including the timing or any

possible impact on HSBC, which could be significant.

Other regulatory investigations, reviews and litigation

HSBC Holdings 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 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.

14Transactions with related parties

There were no changes in the related party transactions described in the Annual Report and Accounts 2024 that have had a material effect on

the financial position or performance of HSBC 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.

15Assets held for sale, liabilities of disposal groups held for sale and business

acquisitions

---

| | | |
|:---|:---|:---|
|  | At | At |
|  | **30 Jun 2025** | 31 Dec 2024 |
|  | **$m** | $m |
| Disposal groups | **38716** | 27126 |
| Unallocated impairment losses<sup>1</sup> | **(79)** | (31) |
| Non-current assets held for sale | **341** | 139 |
| **Assets held for sale** | **38978** | 27234 |
| **Liabilities of disposal groups held for sale** | **46165** | 29011 |

---

1This represents impairment losses in excess of the carrying value of the non-current assets, excluded from the measurement scope of IFRS 5.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **99** |

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| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

Disposal groups

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 €7.1bn ($8.3bn) 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 $1.4bn on the remeasurement of the

financial instruments, which resulted in an approximately 0.2 percentage point reduction in the Group's CET1 ratio, 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, $6.2bn 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.

Other disposals

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, $1bn in assets and $12.6bn 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.

On 3 July 2025, HSBC Bank plc, a wholly-owned subsidiary of HSBC Holdings plc, entered into a binding agreement to sell its UK life insurance

entity, HSBC Life (UK) Limited, to Chesnara plc. The disposal group, comprising $6.2bn in assets and $5.9bn in liabilities at 30 June 2025, is

expected to be classified as 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 $0.1bn. The transaction, which remains subject to regulatory approval, is expected to

complete in early 2026. Upon completion, foreign currency translation reserve losses, which stood at $0.2bn at 30 June 2025, will recycle to the

income statement.

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 as 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.

On 27 July 2025, HSBC Latin America Holdings (UK) Limited, a direct subsidiary of HSBC Holdings plc, entered into a binding agreement for the

sale of its direct subsidiary, HSBC Bank (Uruguay) S.A., to a subsidiary of BTG Pactual Holding SA. The planned sale, which remains subject to

regulatory approval, is targeted for completion in the second half of 2026. The disposal group, comprising $2.2bn in assets and $2.0bn in

liabilities at 30 June 2025, is expected to be classified as held for sale in the second half of 2025, when we will recognise an immaterial loss on

disposal.

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 $2.7bn in assets and $2.7bn 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.

On 25 September 2024, HSBC 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 $0.8bn in

assets and $3.2bn 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 $0.2bn.

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 $27.9bn in assets and $26.9bn 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.

On 18 February 2025, HSBC Bank Middle East, Bahrain branch, entered into a binding agreement to transfer its retail banking business in

Bahrain to Bank of Bahrain and Kuwait B.S.C. The transaction, which has received regulatory approval, is expected to complete in the second

half of 2025. The sale is expected to generate an estimated pre-tax gain on disposal of $0.1bn, which will be recognised on completion.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **100** |

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| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | **Interim condensed consolidated** <br>**financial statements**<br>| Additional information |

---

At 30 June 2025, the major classes of assets and associated liabilities of disposal groups held for sale, including allocated impairment losses,

were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **French life** <br>**insurance** <br>**business**<br>| **German** <br>**private** <br>**banking** <br>**business**<br>| **South** <br>**Africa**<sup>1</sup><br>| **Bahrain** <br>**retail** <br>**banking** <br>**business**<br>| **Germany** <br>**custody** <br>**business**<sup>2</sup><br>| **French** <br>**portfolio of** <br>**home and** <br>**certain** <br>**other loans**<br>| **Total** |
|  | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** | **$m** |
| **Assets of disposal groups held for sale** |  |  |  |  |  |  |  |
| Cash and balances at central banks | **—** | **2305** | **—** | **—** | **—** | **—** | **2305** |
| Financial assets designated and otherwise mandatorily <br>measured at fair value through profit or loss<br>| **16972** | **—** | **—** | **—** | **—** | **—** | **16972** |
| Derivatives | **44** | **—** | **7** | **—** | **—** | **—** | **51** |
| Loans and advances to banks | **59** | **—** | **—** | **—** | **110** | **—** | **169** |
| Loans and advances to customers  | **—** | **359** | **758** | **181** | **864** | **—** | **2162** |
| Financial investments<sup>3</sup> | **9663** | **—** | **—** | **—** | **—** | **6191** | **15854** |
| Goodwill | **—** | **5** | **—** | **—** | **—** | **—** | **5** |
| Prepayments, accrued income and other assets  | **1122** | **19** | **11** | **—** | **40** | **6** | **1198** |
| **Total assets at 30 Jun 2025** | **27860** | **2688** | **776** | **181** | **1014** | **6197** | **38716** |
| **Liabilities of disposal groups held for sale** |  |  |  |  |  |  |  |
| Deposits by banks | **—** | **—** | **—** | **—** | **103** | **—** | **103** |
| Customer accounts  | **—** | **2662** | **3210** | **824** | **12392** | **—** | **19088** |
| Financial liabilities designated at fair value | **13** | **—** | **—** | **—** | **—** | **—** | **13** |
| Derivatives | **—** | **—** | **12** | **—** | **—** | **—** | **12** |
| Insurance contract liabilities  | **24928** | **—** | **—** | **—** | **—** | **—** | **24928** |
| Accruals, deferred income and other liabilities  | **1917** | **21** | **22** | **3** | **58** | **—** | **2021** |
| **Total liabilities at 30 Jun 2025** | **26858** | **2683** | **3244** | **827** | **12553** | **—** | **46165** |
| Expected date of completion | **Second half** <br>**of 2025**<br>| **Second half** <br>**of 2025**<br>| **First quarter** <br>**of 2026**<br>| **Second half** <br>**of 2025**<br>| **Second half** <br>**of 2027**<br>| **Second half** <br>**of 2025**<br>|  |
| Operating segment | **IWPB** | **IWPB** | **CIB and** <br>**Corporate** <br>**Centre**<br>| **IWPB** | **CIB** | **Corporate** <br>**Centre**<br>|  |

---

At 31 December 2024, the major classes of assets and associated liabilities of disposal groups held for sale, excluding allocated impairment

losses, were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | French life <br>insurance <br>business<br>| German<br> private<br> banking <br>business<br>| South<br> Africa<sup>1</sup><br>| Other | Total |
|  | $m | $m | $m | $m | $m |
| Assets of disposal groups held for sale |  |  |  |  |  |
| Cash and balances at central banks |  | 1896 |  |  | 1896 |
| Financial assets designated and otherwise mandatorily <br>measured at fair value through profit or loss<br>| 14560 |  |  |  | 14560 |
| Derivatives | 26 |  | 10 |  | 36 |
| Loans and advances to banks | 144 |  |  |  | 144 |
| Loans and advances to customers  |  | 309 | 656 |  | 965 |
| Financial investments<sup>3</sup> | 8500 |  |  |  | 8500 |
| Goodwill |  | 5 |  |  | 5 |
| Prepayments, accrued income and other assets  | 992 | 21 | 7 |  | 1020 |
| Total assets at 31 Dec 2024 | 24222 | 2231 | 673 |  | 27126 |
| Liabilities of disposal groups held for sale |  |  |  |  |  |
| Customer accounts  |  | 2085 | 3294 | 20 | 5399 |
| Financial liabilities designated at fair value | 11 | 119 |  |  | 130 |
| Derivatives |  |  | 19 |  | 19 |
| Insurance contract liabilities  | 21811 |  |  |  | 21811 |
| Accruals, deferred income and other liabilities  | 1598 | 22 | 32 |  | 1652 |
| Total liabilities at 31 Dec 2024 | 23420 | 2226 | 3345 | 20 | 29011 |

---

1 Under the financial terms of the sale of our South Africa business, HSBC Bank plc will transfer the business with a net asset value of $0.8bn for book value less

any provisions. The purchase price will be satisfied by the transfer of agreed liabilities of $3.2bn. 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 $2.4bn.

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.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **101** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | Interim condensed consolidated <br>financial statements<br>| **Additional information** |

---

16Events after the balance sheet date

A second interim dividend for 2025 of $0.10 per ordinary share in respect of the financial year ending 31 December 2025 was approved by the

Directors on 30 July 2025, as described in Note 3. On 30 July 2025, HSBC Holdings announced its intention to initiate a share buy-back to

purchase its ordinary shares up to a maximum consideration of $3.0bn, which is expected to commence shortly and complete by our third

quarter 2025 results announcement.

On 3 July 2025, HSBC Bank plc, a wholly owned subsidiary of HSBC Holdings 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 is 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 $1.4bn at 30 June 2025.

On 27 July 2025, HSBC Latin America Holdings (UK) Limited, a direct subsidiary of HSBC Holdings plc, entered into a binding agreement for the

sale of its direct subsidiary, HSBC Bank (Uruguay) S.A., to a subsidiary of BTG Pactual Holding SA. The planned sale, which remains subject to

regulatory approval, is targeted for completion in the second half of 2026.

17Interim Report 2025 and statutory accounts

The information in this 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 Holdings 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.

Shareholder information

Directors' interests

According to the register of Directors' interests maintained by HSBC Holdings pursuant to section 352 of the Securities and Futures Ordinance

of Hong Kong, at 30 June 2025 the Directors of HSBC Holdings had the following interests, all beneficial unless otherwise stated, in the shares

or debentures of HSBC Holdings and its associated corporations:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Directors' interests – shares and debentures | Directors' interests – shares and debentures | Directors' interests – shares and debentures | Directors' interests – shares and debentures | Directors' interests – shares and debentures | Directors' interests – shares and debentures | Directors' interests – shares and debentures |
|  | **At 1 Jan 2025**<br>**or date of** <br>**appointment,** <br>**if later**<br>| **At 30 Jun 2025 or date of retirement, if earlier** | **At 30 Jun 2025 or date of retirement, if earlier** | **At 30 Jun 2025 or date of retirement, if earlier** | **At 30 Jun 2025 or date of retirement, if earlier** | **At 30 Jun 2025 or date of retirement, if earlier** |
|  | **Total interests** | **Beneficial**<br>**owner**<br>| **Child** <br>**under 18** <br>**or spouse**<br>| **Jointly with** <br>**spouse/other**<br>| **Trustee** | **Total** <br>**interests**<br>|
| **HSBC Holdings ordinary shares** |  |  |  |  |  |  |
| Geraldine Buckingham<sup>1</sup> | **15000** | **15000** | **—** | **—** | **—** | **15000** |
| Rachel Duan<sup>1</sup> | **15000** | **15000** | **—** | **—** | **—** | **15000** |
| Georges Elhedery<sup>2</sup> | **966017** | **1109810** | **—** | **—** | **—** | **1109810** |
| Dame Carolyn Fairbairn | **15000** | **15000** | **—** | **—** | **—** | **15000** |
| James Forese<sup>1</sup> | **115000** | **115000** | **—** | **—** | **—** | **115000** |
| Ann Godbehere<sup>1</sup> | **15000** | **—** | **—** | **15000** | **—** | **15000** |
| Steven Guggenheimer<sup>1</sup> | **15000** | **—** | **—** | **15000** | **—** | **15000** |
| Manveen (Pam) Kaur<sup>2</sup> | **801296** | **986625** | **—** | **—** | **—** | **986625** |
| José Antonio Meade Kuribreña<sup>1</sup> | **15000** | **15000** | **—** | **—** | **—** | **15000** |
| Kalpana Morparia<sup>1</sup> | **15000** | **15000** | **—** | **—** | **—** | **15000** |
| Eileen Murray<sup>1</sup> | **75000** | **75000** | **—** | **—** | **—** | **75000** |
| Brendan Nelson | **15000** | **15000** | **—** | **—** | **—** | **15000** |
| Swee Lian Teo | **15200** | **15200** | **—** | **—** | **—** | **15200** |
| Sir Mark Tucker | **307352** | **307352** | **—** | **—** | **—** | **307352** |

---

1Geraldine Buckingham has an interest in 3,000, Rachel Duan in 3,000, James Forese in 23,000, Ann Godbehere in 3,000, Steven Guggenheimer in 3,000, José

Antonio Meade Kuribreña in 3,000, Kalpana Morparia in 3,000 and Eileen Murray in 15,000 listed American Depositary Shares ('ADSs'), which are categorised as

equity derivatives under Part XV of the Securities and Futures Ordinance of Hong Kong. Each ADS represents five HSBC Holdings ordinary shares.

2Executive Directors' other interests in HSBC Holdings ordinary shares arising from the HSBC Holdings Savings-Related Share Option Plan (UK) and the HSBC

Share Plan 2011 are set out on the following pages. At 30 June 2025, the aggregate interests under the Securities and Futures Ordinance of Hong Kong in HSBC

Holdings ordinary shares, including interests arising through employee share plans, were: Georges Elhedery – 3,938,444 and Pam Kaur – 2,771,470. Each

Director's total interests represents approximately 0.02% of the shares in issue and 0.02% of the shares in issue, respectively.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **102** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | Interim condensed consolidated <br>financial statements<br>| **Additional information** |

---

HSBC Holdings Savings-Related Share Option Plan (UK)

Currently no executive Directors participate in a Savings-Related Share Option Plan.

HSBC Share Plan 2011

Share awards

Vesting of deferred share awards is normally subject to the Director remaining an employee on the vesting date and no other performance

conditions apply to the awards unless specified. The awards may vest at an earlier date in certain circumstances. Under the Securities and

Futures Ordinance of Hong Kong, interests in conditional share awards are categorised as the interests of the beneficial owner.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Deferred share, immediate share and fixed pay allowance awards granted to Directors | Deferred share, immediate share and fixed pay allowance awards granted to Directors | Deferred share, immediate share and fixed pay allowance awards granted to Directors | Deferred share, immediate share and fixed pay allowance awards granted to Directors | Deferred share, immediate share and fixed pay allowance awards granted to Directors | Deferred share, immediate share and fixed pay allowance awards granted to Directors | Deferred share, immediate share and fixed pay allowance awards granted to Directors | Deferred share, immediate share and fixed pay allowance awards granted to Directors | Deferred share, immediate share and fixed pay allowance awards granted to Directors | Deferred share, immediate share and fixed pay allowance awards granted to Directors |
|  |  |  |  | **HSBC Holdings ordinary shares** | **HSBC Holdings ordinary shares** | **HSBC Holdings ordinary shares** | **HSBC Holdings ordinary shares** | **HSBC Holdings ordinary shares** | **HSBC Holdings ordinary shares** |
|  | Award price <br>(£)<sup>1</sup> | Usually vesting | Usually vesting | **At 1 Jan** <br>**2025** | **Granted in** <br>**period** | **Vested in** <br>**period** | **Lapsed in** <br>**period** | **Cancelled in** <br>**period** | **At 30 Jun** <br>**2025** |
|  | Award price <br>(£)<sup>1</sup> | from | to | **At 1 Jan** <br>**2025** | **Granted in** <br>**period** | **Vested in** <br>**period** | **Lapsed in** <br>**period** | **Cancelled in** <br>**period** | **At 30 Jun** <br>**2025** |
| Georges <br>Elhedery<br> 24 Feb 2020<sup>2</sup> | 5.622 | 1 Mar 2023 | 31 Mar 2027 | **88597** | **—** | **29532** | **—** | **—** | **59065** |
| Georges <br>Elhedery<br> 1 Mar 2021<sup>3</sup> | 4.262 | 1 Mar 2024 | 31 Mar 2028 | **244419** | **—** | **61104** | **—** | **—** | **183315** |
| Georges <br>Elhedery<br> 28 Feb 2022<sup>4</sup> | 5.380 | 1 Mar 2025 | 31 Mar 2029 | **273163** | **—** | **54632** | **—** | **—** | **218531** |
| Georges <br>Elhedery<br> 4 Mar 2025<sup>5</sup> | 9.070 |  | 4 Mar 2025 | **—** | **92447** | **92447** | **—** | **—** | **—** |
| Manveen <br>(Pam) Kaur<br> 26 Feb 2018<sup>6</sup> | 7.234 | 1 Mar 2021 | 31 Mar 2025 | **15633** | **—** | **15633** | **—** | **—** | **—** |
| Manveen <br>(Pam) Kaur<br> 25 Feb 2019<sup>7</sup> | 6.235 | 1 Mar 2022 | 31 Mar 2026 | **37310** | **—** | **18655** | **—** | **—** | **18655** |
| Manveen <br>(Pam) Kaur<br> 24 Feb 2020<sup>2</sup> | 5.622 | 1 Mar 2023 | 31 Mar 2027 | **58909** | **—** | **19635** | **—** | **—** | **39274** |
| Manveen <br>(Pam) Kaur<br> 1 Mar 2021<sup>3</sup> | 4.262 | 1 Mar 2024 | 31 Mar 2028 | **169555** | **—** | **42388** | **—** | **—** | **127167** |
| Manveen <br>(Pam) Kaur<br> 28 Feb 2022<sup>4</sup> | 5.380 | 1 Mar 2025 | 31 Mar 2029 | **210542** | **—** | **42108** | **—** | **—** | **168434** |
| Manveen <br>(Pam) Kaur<br> 27 Feb 2023<sup>8</sup> | 6.357 | 1 Mar 2026 | 31 Mar 2030 | **65843** | **—** | **—** | **—** | **—** | **65843** |
| Manveen <br>(Pam) Kaur<br> 26 Feb 2024<sup>9</sup> | 5.972 | 1 Mar 2027 | 31 Mar 2031 | **100798** | **—** | **—** | **—** | **—** | **100798** |
| Manveen <br>(Pam) Kaur<br> 4 Mar 2025<sup>5</sup> | 9.070 |  | 4 Mar 2025 | **—** | **186052** | **186052** | **—** | **—** | **—** |

---

1The award price is the closing price on the day before the grant date for awards made in 2024 and prior. The price for awards made from 2025 is the average

closing price of the week prior to the grant date. In all cases the purchase price is nil.

2The award vests in five equal annual tranches. The third tranche vested on 10 March 2025 at a market value of £8.6138. Shares equivalent in number to those

that vest under the award (net of tax liabilities) must be retained for one year from the vesting date. The closing price of the shares immediately before the date

on which the awards were vested was £8.764.

3The award vests in five equal annual tranches. The second tranche vested on 10 March 2025 at a market value of £8.6138. Shares equivalent in number to those

that vest under the award (net of tax liabilities) must be retained for one year from the vesting date. The closing price of the shares immediately before the date

on which the awards were vested was £8.764.

4The award vests in five equal annual tranches. The first tranche vested on 11 March 2025 at a market value of £8.4415. Shares equivalent in number to those

that vest under the award (net of tax liabilities) must be retained for one year from the vesting date. The closing price of the shares immediately before the date

on which the awards were vested was £8.548.

5The non-deferred award vested immediately on 4 March 2025 and was based on the market value of £9.2551. Shares equivalent in number to those that vest

under the award (net of tax liabilities) must be retained for one year from the vesting date. The closing price of the shares immediately before the date on which

the awards were granted and vested, was £9.425. The fair value of the awards granted on 4 March 2025 was £9.1630 based on IFRS 2 accounting standards.

6The award vested in five equal annual tranches. The final tranche vested on 10 March 2025 at a market value of £8.6138. Shares equivalent in number to those

that vest under the award (net of tax liabilities) must be retained for one year from the vesting date. The closing price of the shares immediately before the date

on which the awards were vested was £8.764.

7The award vests in five equal annual tranches. The fourth tranche vested on 10 March 2025 at a market value of £8.6138. Shares equivalent in number to those

that vest under the award (net of tax liabilities) must be retained for six months from the vesting date. The closing price of the shares immediately before the

date on which the awards were vested was £8.764.

8The award will vest in five equal tranches commencing in 2026. Shares equivalent in number to those that vest under the award (net of tax liabilities) must be

retained for one year from the vesting date.

9The award will vest in five equal tranches commencing in 2027. Shares equivalent in number to those that vest under the award (net of tax liabilities) must be

retained for one year from the vesting date.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **103** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | Interim condensed consolidated <br>financial statements<br>| **Additional information** |

---

Long-term incentive awards

The long-term incentive award is an award of shares with a three-year performance period. At the end of this performance period and subject to the

award terms, the number of shares that vest will be determined based on an assessment against financial and non-financial measures. Details of these

measures can be found in the Directors' remuneration report in the Annual Report and Accounts. Subject to that assessment, the shares will vest in five

equal annual instalments, with the first instalment vesting on or around the third anniversary of the grant date and the last instalment vesting on or

around the seventh anniversary of the grant date. On vesting, awards are subject to a retention period of up to one year. Under the Securities and

Futures Ordinance of Hong Kong, interests in share awards are categorised as interests of the beneficial owner.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Long-term incentive awards granted to Directors | Long-term incentive awards granted to Directors | Long-term incentive awards granted to Directors | Long-term incentive awards granted to Directors | Long-term incentive awards granted to Directors | Long-term incentive awards granted to Directors | Long-term incentive awards granted to Directors | Long-term incentive awards granted to Directors | Long-term incentive awards granted to Directors | Long-term incentive awards granted to Directors | Long-term incentive awards granted to Directors |
|  |  |  |  |  | **HSBC Holdings ordinary shares** | **HSBC Holdings ordinary shares** | **HSBC Holdings ordinary shares** | **HSBC Holdings ordinary shares** | **HSBC Holdings ordinary shares** | **HSBC Holdings ordinary shares** |
|  | Dates of <br>award | Award price <br>(£)<sup>1</sup> | Usually vesting | Usually vesting | **At 1 Jan** <br>**2025** | **Granted in** <br>**period** | **Vested in** <br>**period** | **Lapsed in** <br>**period** | **Cancelled** <br>**in period** | **At 30 Jun** <br>**2025** |
|  | Dates of <br>award | Award price <br>(£)<sup>1</sup> | from | to | **At 1 Jan** <br>**2025** | **Granted in** <br>**period** | **Vested in** <br>**period** | **Lapsed in** <br>**period** | **Cancelled** <br>**in period** | **At 30 Jun** <br>**2025** |
| Georges <br>Elhedery | 28 Feb 2022 | 5.380 | 1 Mar 2025 | 31 Mar 2029 | **223989** | **—** | **33597**<sup>2</sup> | **55998** | **—** | **134394** |
| Georges <br>Elhedery | 27 Feb 2023 | 6.357 | 1 Mar 2026 | 31 Mar 2030 | **251474** | **—** | **—** | **—** | **—** | **251474** |
| Georges <br>Elhedery | 26 Feb 2024 | 5.972 | 1 Mar 2027 | 31 Mar 2031 | **569177** | **—** | **—** | **—** | **—** | **569177** |
| Georges <br>Elhedery | 7 May 2025<sup>3</sup> | 9.070<sup>4</sup> | 1 Mar 2028 | 31 Mar 2032 | **—** | **1367880** | **—** | **—** | **—** | **1367880** |
| Manveen <br>(Pam) Kaur | 28 Feb 2022 | 5.380 | 1 Mar 2025 | 31 Mar 2029 | **168077** | **—** | **25211**<sup>2</sup> | **42020** | **—** | **100846** |
| Manveen <br>(Pam) Kaur | 27 Feb 2023 | 6.357 | 1 Mar 2026 | 31 Mar 2030 | **146393** | **—** | **—** | **—** | **—** | **146393** |
| Manveen <br>(Pam) Kaur | 26 Feb 2024 | 5.972 | 1 Mar 2027 | 31 Mar 2031 | **185889** | **—** | **—** | **—** | **—** | **185889** |
| Manveen <br>(Pam) Kaur | 7 May 2025<sup>3</sup> | 9.070<sup>4</sup> | 1 Mar 2028 | 31 Mar 2032 | **—** | **797930** | **—** | **—** | **—** | **797930** |

---

1The award price is the closing price on the day before the grant date for awards made in 2024 and prior. The price for awards made from 2025 is the average

closing price of the week prior to the grant date. In all cases the purchase price is nil.

2The performance conditions were assessed and confirmed at 75%. The remaining 25% of the award was forfeited. Shares equivalent in number to those that

vest under the award (net of tax liabilities) must be retained for one year from the vesting date. The award vests in five equal annual tranches which commenced

in 2025. The first tranche vested on 11 March 2025 at a market value of £8.4415. The closing price of the shares immediately before the date on which the

awards were vested was £8.548.

3 The closing price of the shares immediately before the date on which the awards were granted was £8.465. The fair value of the awards was £3.185 based on

IFRS 2 accounting standards.

4Awards were granted following approval of the Directors' Remuneration Policy at the 2025 AGM on 2 May 2025. The number of shares under award was

calculated using the same award price determined for other long-term incentive grants made in March 2025.

No Directors held any short position (as defined in the Securities and Futures Ordinance of Hong Kong) in the shares or debentures of HSBC

Holdings and its associated corporations. Save as stated in the tables above, none of the Directors had an interest in any shares or debentures

of HSBC Holdings or any associates at the beginning or at the end of the period, and none of the Directors or members of their immediate

families were awarded or exercised any right to subscribe for any shares or debentures in any HSBC corporation during the period.

There have been no changes in the shares or debentures of the Directors from 30 June 2025 to the date of this report.

Employee share plans

Summaries of the share options and share awards granted, exercised/vested or lapsed during the first half of 2025 and other details required to

be disclosed pursuant to Chapter 17 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ('HKEx'),

including detailed summaries of the HSBC share plans, are available on our website at www.hsbc.com/who-we-are/leadership-and-governance/

remuneration and on the website of HKEx at www.hkex.com.hk, or can be obtained on request from the Group Company Secretary and Chief

Governance Officer, 8 Canada Square, London, E14 5HQ.

Particulars of options held by Directors of HSBC Holdings are set out on page <u>[101](#i8e8ecbd1e3414dedb6f068494c12f9d9_607)</u>.

Share buy-back

On 31 October 2024, HSBC Holdings commenced a further share buy-back of its ordinary shares of up to a maximum consideration of $3.0bn.

The share buy-back continued in 2025 and was concluded on 11 February 2025, with 53,412,510 ordinary shares repurchased for cancellation on

UK trading venues and 48,119,200 ordinary shares repurchased for cancellation on HKEx from 1 January to 11 February 2025.

On 21 February 2025, HSBC Holdings commenced a further share buy-back of its ordinary shares of up to a maximum consideration of $2.0bn.

This share buy-back concluded on 25 April 2025 with 90,226,199 ordinary shares repurchased for cancellation on UK trading venues and

89,362,400 ordinary shares repurchased for cancellation on HKEx.

On 7 May 2025, HSBC Holdings commenced a further share buy-back of its ordinary shares of up to a maximum consideration of $3.0bn. As at

30 June 2025, 119,313,076 ordinary shares had been repurchased for cancellation on UK trading venues and 78,638,800 ordinary shares were

repurchased for cancellation on HKEx.

The purpose of the share buy-backs was to reduce HSBC's number of outstanding ordinary shares.

As at 30 June 2025, the total number of ordinary shares repurchased during the year was 479,072,185, representing a nominal value of $239,536,093

and an aggregate consideration paid by HSBC of £2,240,783,616 on UK trading venues and HK$18,698,644,580 on HKEx. The ordinary shares

repurchased represent 2.741% of the ordinary shares in issue as at 30 June 2025. Of the repurchased ordinary shares, 20,746,000 shares were

awaiting cancellation as at 30 June 2025.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **104** |

---

---

| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | Interim condensed consolidated <br>financial statements<br>| **Additional information** |

---

The table that follows outlines details of the ordinary shares purchased and cancelled on a monthly basis during 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Share buy-back – UK venues | Share buy-back – UK venues | Share buy-back – UK venues | Share buy-back – UK venues | Share buy-back – UK venues | Share buy-back – UK venues |
|  | **Number of shares** <br>**purchased** | **Highest price** <br>**paid per share**<br>| **Lowest price** <br>**paid per share**<br>| **Average price** <br>**paid per share**<br>| **Aggregate** <br>**price paid**<br>|
|  | **Number of shares** <br>**purchased** | **£** | **£** | **£** | **£** |
| Jan 2025 | **53412510** | **8.2800** | **7.6770** | **7.9835** | **426418493** |
| Feb 2025 | **17354614** | **9.2790** | **8.7210** | **8.9940** | **156088219** |
| Mar 2025 | **48866970** | **9.4300** | **8.3510** | **8.8567** | **432798143** |
| Apr 2025 | **24004615** | **8.8940** | **6.9890** | **7.8260** | **187859442** |
| May 2025 | **68401165** | **8.9150** | **8.3530** | **8.6873** | **594221859** |
| Jun 2025 | **50911911** | **8.8730** | **8.6010** | **8.7091** | **443397460** |
| **Total** | **262951785** |  |  |  | **2240783616** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Share buy-back – Hong Kong venues | Share buy-back – Hong Kong venues | Share buy-back – Hong Kong venues | Share buy-back – Hong Kong venues | Share buy-back – Hong Kong venues | Share buy-back – Hong Kong venues |
|  | **Number of shares** <br>**purchased** | **Highest price** <br>**paid per share**<br>| **Lowest price** <br>**paid per share**<br>| **Average price** <br>**paid per share**<br>| **Aggregate** <br>**price paid**<br>|
|  | **Number of shares** <br>**purchased** | **HK$** | **HK$** | **HK$** | **HK$** |
| Jan 2025 | **29455200** | **79.9500** | **74.8000** | **76.9614** | **2266914703** |
| Feb 2025 | **33403600** | **89.8000** | **79.4500** | **84.2625** | **2814671080** |
| Mar 2025 | **54995200** | **92.5500** | **83.9500** | **88.6511** | **4875383400** |
| Apr 2025 | **19627600** | **89.1000** | **70.0500** | **79.7185** | **1564683760** |
| May 2025 | **48790000** | **93.6500** | **86.2500** | **90.6985** | **4425181117** |
| Jun 2025 | **29848800** | **93.9000** | **90.9000** | **92.1917** | **2751810520** |
| **Total** | **216120400** |  |  |  | **18698644580** |

---

Other equity instruments

Additional tier 1 capital – contingent convertible securities

HSBC Holdings continues to issue contingent convertible securities that are included in its capital base as fully CRR II-compliant additional tier 1

capital securities. These securities are marketed principally and subsequently allotted to corporate investors and fund managers. The net

proceeds of the issuances are typically used for HSBC Holdings' general corporate purposes and to maintain or further strengthen its capital

base pursuant to requirements under CRR II. These securities bear a fixed rate of interest until their initial reset dates (unless previously

redeemed in accordance with their terms). If not redeemed, the securities will bear interest at a rate fixed on each reset date for the

subsequent 5-year period, equal to the sum of the applicable reference rate at the time of reset and a credit spread set at issuance. Interest on

the contingent convertible securities will be due and payable only at the sole discretion of HSBC Holdings, and HSBC Holdings has sole and

absolute discretion at all times to cancel for any reason (in whole or part) any interest payment that would otherwise be payable on any payment

date. Distributions will not be paid if they are prohibited under UK banking regulations or if the Group has insufficient reserves or fails to meet

the solvency conditions defined in the securities' terms.

The contingent convertible securities are undated and are repayable at the option of HSBC Holdings in whole typically at the initial call date or on

any fifth anniversary after this date. In addition, the securities are repayable at the option of HSBC in whole for certain regulatory or tax reasons.

Any repayments require the prior consent of the PRA. These securities rank pari passu with HSBC Holdings' sterling preference shares and

therefore rank ahead of ordinary shares. The contingent convertible securities will be converted into fully paid ordinary shares of HSBC Holdings

at a predetermined price, should HSBC's consolidated CET1 ratio fall below 7.0%. Therefore, in accordance with the terms of the securities, if

HSBC's consolidated CET1 ratio breaches the 7.0% trigger, the securities will convert into ordinary shares at fixed contractual conversion prices

in the currency of the relevant securities, subject to anti-dilution adjustments. During the first half of 2025, HSBC Holdings issued $1,500m

6.950%, SGD800m 5.000% and $2,000m 7.050% in aggregate principal amount of contingent convertible securities.

Notifiable interests in share capital

Between 1 January 2025 and 30 June 2025, HSBC Holdings did not receive any notification of major holdings of voting rights pursuant to the

requirements of Rule 5 of the Disclosure, Guidance and Transparency Rules ('DTR'), which had not been amended or withdrawn. No further

DTR notifications had been received between 30 June 2025 and 18 July 2025.

Previous DTR notifications received, which have not been amended or withdrawn, are as follows:

–BlackRock, Inc. gave notice on 3 March 2020 that on 2 March 2020 it had the following: an indirect interest in HSBC Holdings ordinary shares

of 1,235,558,490; qualifying financial instruments with 7,294,459 voting rights that may be acquired if the instruments are exercised or

converted; and financial instruments with a similar economic effect to qualifying financial instruments, which refer to 2,441,397 voting rights,

representing 6.07%, 0.03% and 0.01%, respectively, of the total voting rights at 2 March 2020.

–Ping An Asset Management Co., Ltd. gave notice on 6 December 2017 that on 4 December 2017 it had an indirect interest in HSBC

Holdings ordinary shares of 1,007,946,172, representing 5.04% of the total voting rights at 4 December 2017.

At 30 June 2025, according to the register maintained by HSBC Holdings pursuant to section 336 of the Securities and Futures Ordinance of

Hong Kong ('SFO'), the following SFO notifications of major holdings have been made to HSBC Holdings and have not been amended or

withdrawn:

–BlackRock, Inc. gave notice on 30 June 2025 that on 25 June 2025 it had the following interests in HSBC Holdings ordinary shares: a long

position of 1,588,010,670 shares and a short position of 6,645,509 shares, representing 9.09% and 0.04%, respectively, of the ordinary

shares in issue at 25 June 2025.

–Ping An Asset Management Co., Ltd. gave notice on 10 May 2024 that on 7 May 2024 it had a long position of 1,502,584,731 in HSBC

Holdings ordinary shares, representing 7.98% of the ordinary shares in issue at 7 May 2024.

---

| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **105** |

---

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| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | Interim condensed consolidated <br>financial statements<br>| **Additional information** |

---

–The Bank of New York Mellon Corporation gave notice on 7 June 2025 that on 5 June 2025 it had the following interests in HSBC Holdings

ordinary shares: a long position of 990,620,238 shares, a short position of 526,819,692 shares and a lending pool of 432,561,788 shares

representing 5.65%, 3.00% and 2.47%, respectively, of the ordinary shares in issue at 5 June 2025. The Bank of New York Mellon

Corporation is the Depository for the HSBC ADSs. Under the SFO, they are required to report the HSBC ADSs position as both a long and a

short position.

Between 30 June 2025 and 22 July 2025, the following SFO notification was received:

–BlackRock, Inc. gave notice on 16 July 2025 that on 11 July 2025 it had the following interests in HSBC Holdings ordinary shares: a long

position of 1,586,341,122 shares and a short position of 6,856,029 shares, representing 9.09% and 0.04%, respectively, of the ordinary

shares in issue at 11 July 2025.

Dealings in HSBC Holdings listed securities

HSBC has policies and procedures that, except where permitted by statute and regulation, prohibit it undertaking specified transactions in

respect of its securities listed on the HKEx. Except for dealings as intermediaries or as trustees by subsidiaries of HSBC Holdings, or in relation

to HSBC Holdings ordinary share buy-backs, neither HSBC Holdings nor any of its subsidiaries has purchased, sold or redeemed any of its

securities listed on HKEx during the half-year ended 30 June 2025.

Second interim dividend for 2025

On 30 July 2025, the Directors approved a second interim dividend in respect of the financial year ending 31 December 2025 of $0.10 per

ordinary share (the 'dividend'), a distribution of approximately $1.74bn. The dividend will be payable on 26 September 2025 to holders of record

on the Principal Register in the UK, the Hong Kong Overseas Branch Register or the Bermuda Overseas Branch Register on 15 August 2025.

The dividend will be payable in US dollars, or in pounds sterling or Hong Kong dollars at the forward exchange rates quoted by HSBC Bank plc in

London at or about 11.00am on 15 September 2025. The ordinary shares in London, Hong Kong and Bermuda will be quoted ex-dividend on

14 August 2025. American Depositary Shares ('ADSs') in New York will be quoted ex-dividend on 15 August 2025.

The default currency on the Principal Register in the UK is pounds sterling, and dividends can also be paid in Hong Kong dollars or US dollars, or

a combination of these currencies. International shareholders can register to join the Global Dividend Service to receive dividends in their local

currencies. Please register and read the terms and conditions at www.investorcentre.co.uk. UK shareholders can also register their pounds

sterling bank mandates at www.investorcentre.co.uk.

The default currency on the Hong Kong Overseas Branch Register is Hong Kong dollars, and dividends can also be paid in US dollars or pounds

sterling, or a combination of these currencies. Shareholders can arrange for direct credit of Hong Kong dollar cash dividends into their bank

account, or arrange to send US dollar or pounds sterling cheques to the credit of their bank account. Shareholders can register for these

services at www.investorcentre.com/hk. Shareholders can also download a dividend currency election form from www.hsbc.com/dividends,

www.investorcentre.com/hk, or www.hkexnews.hk.

The default currency on the Bermuda Overseas Branch Register is US dollars, and dividends can also be paid in Hong Kong dollars or pounds

sterling, or a combination of these currencies. Shareholders can change their dividend currency election by contacting the Bermuda investor

relations team. Shareholders can download a dividend currency election form from www.hsbc.com/dividends.

Changes to currency elections must be received by 10 September 2025 to be effective for this dividend.

The dividend will be payable on ADSs, each of which represents five ordinary shares, on 26 September 2025 to holders of record on

15 August 2025. The dividend of $0.50 per ADS will be payable by the depositary in US dollars. Alternatively, the cash dividend may be invested

in additional ADSs by participants in the dividend reinvestment plan operated by the depositary. Elections must be received by

5 September 2025.

Any person who has acquired ordinary shares registered on the Principal Register in the UK, the Hong Kong Overseas Branch Register or the

Bermuda Overseas Branch Register but who has not lodged the share transfer with the Principal Registrar in the UK, Hong Kong Overseas

Branch Registrar or Bermuda Overseas Branch Registrar should do so before 4.00pm local time on 15 August 2025 in order to receive the

dividend.

Ordinary shares may not be removed from or transferred to the Principal Register in the UK, the Hong Kong Overseas Branch Register or the

Bermuda Overseas Branch Register on 15 August 2025. Any person wishing to remove ordinary shares to or from each register must do so

before 4.00pm local time on 14 August 2025.

Shares repurchased under HSBC Holdings plc buy-backs, which have not yet been cancelled from the Hong Kong custodians' CCASS account

as at the record date, will not be eligible for the dividend.

Transfers of ADSs must be lodged with the depositary by 11.00am local time on 15 August 2025 in order to receive the dividend. ADS holders

who receive a cash dividend will be charged a fee, which will be deducted by the depositary, of $0.005 per ADS per cash dividend.

Dividend on preference share

A quarterly dividend of £0.01 per Series A sterling preference share is payable on 17 March, 16 June, 15 September and 15 December 2025 for

the quarter then ended at the sole and absolute discretion of the Board of HSBC Holdings plc. Accordingly, the Board of HSBC Holdings plc has

approved a quarterly dividend to be payable on 15 September 2025 to holders of record on 29 August 2025.

Proposed interim dividends for 2025

We established and achieved a target basis dividend payout ratio of 50% of earnings per ordinary share ('EPS') for 2023 and 2024, excluding the

special dividend paid in 2024. We maintain our 50% target basis payout ratio for 2025, subject to meeting capital requirements. EPS for this

purpose excludes material notable items and related impacts. Material notable items in 2025 primarily relate to the income statement impacts

associated with actions to exit or wind down certain businesses to redeploy costs from non-strategic activities into areas where we have a

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| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **106** |

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| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | Interim condensed consolidated <br>financial statements<br>| **Additional information** |

---

competitive advantage and accretive returns. They also include a dilution loss and the recognition of an impairment of our investment in BoCom,

as well as any remaining impacts from transactions that completed in previous periods. Material notable items in 2024 included the impacts

related to the sales of our businesses in Canada and Argentina, the sale of our retail banking operations in France and the acquisition of SVB UK.

The Board has adopted a dividend policy designed to provide sustainable cash dividends, while retaining the flexibility to invest and grow the

business in the future, supplemented by additional shareholder distributions, if appropriate.

Dividends are declared in US dollars and, at the election of the shareholder, paid in cash in one of US dollars, pounds sterling or Hong Kong

dollars.

Earnings release

An earnings release for the three-month period ending 30 September 2025is expected to be issued on 28 October 2025.

Final results

The results for the year to 31 December 2025 are expected to be announced on 25 February 2026.

Corporate governance

We are subject to corporate governance requirements in both the UK and Hong Kong. Throughout the six months ended 30 June 2025, we

complied with the applicable provisions of the 2024 UK Corporate Governance Code, effective 1 January 2025 and also the requirements of the

Hong Kong Corporate Governance Code. The UK Corporate Governance Code is available at www.frc.org.uk and the Hong Kong Corporate

Governance Code is available at www.hkex.com.hk. Reporting on compliance with revisions to the Hong Kong Corporate Governance Code,

which were implemented by HKEx with effect from 1 July 2025, will commence within our 2026 Annual Report and Accounts to be published in

February 2027, consistent with the guidance issued by the HKEx in May 2025.

The Board has codified obligations for transactions in Group securities in accordance with the requirements of the UK Market Abuse Regulation

and the rules governing the listing of securities on the HKEx, save that the HKEx has granted waivers from strict compliance with the rules that

take into account accepted practices in the UK, particularly in respect of employee share plans.

All Directors have confirmed that they have complied with their obligations in respect of transacting in Group securities throughout the period.

There have been no material changes to the information disclosed in the Annual Report and Accounts 2024in respect of the remuneration of

employees, remuneration policies, bonus and share option plans and training schemes. Details of the number of employees are provided on

page22 of this Form 6-K.

Changes in Directors' details

There have been no changes in Directors' details since the publication of the Annual Report and Accounts 2024, which are required to be

disclosed pursuant to Rule 13.51(2) and Rule 13.51B(1) of the Hong Kong Listing Rules.

Going concern basis

As mentioned in Note 1 'Basis of preparation and material accounting policies' on page <u>[82](#i8e8ecbd1e3414dedb6f068494c12f9d9_490)</u>, 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 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, including ongoing supply chain disruptions, the impact of the Russia-Ukraine war and

conflict in the Middle East, US-China tensions, potential trade restrictions and tariffs, as well as the potential impacts from other top and

emerging risks, including climate change, as well as the related impacts on profitability, capital and liquidity.

In particular, HSBC's principal activities, business and operating models, strategic direction, and top and emerging risks are addressed in the

Overview section. A financial summary, including a review of the consolidated income statement and consolidated balance sheet, is provided in

the 'Interim management report' section. HSBC's objectives, policies and processes for managing credit, liquidity and market risk are described

in the 'Risk review' section of the Annual Report and Accounts 2024. HSBC's approach to capital management and allocation is described in the

'Treasury risk' section of the Annual Report and Accounts 2024.

Telephone and online share dealing service

For shareholders on the Principal Register who are resident in the UK, with a UK postal address, and who hold an HSBC Bank plc personal

current account, the HSBC InvestDirect share dealing service is available for buying and selling HSBC Holdings plc ordinary shares. Details are

available from: HSBC InvestDirect, Forum 1, Parkway, Whiteley PO15 7PA; or UK telephone: +44 (0) 3456 080848, or from an overseas

telephone: +44 (0) 1226 261090; or website: www.hsbc.co.uk/investments/products-and-services/invest-direct.

Stock symbols

HSBC Holdings plc ordinary shares trade under the following stock symbols:

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| | |
|:---|:---|
| London Stock Exchange | HSBA |
| Hong Kong Stock Exchange | 5 |
| New York Stock Exchange (ADS) | HSBC |
| Bermuda Stock Exchange | HSBC.BH |

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| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **107** |

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| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | Interim condensed consolidated <br>financial statements<br>| **Additional information** |

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Copies of the Interim Report 2025 and shareholder enquiries and

communications

Further copies of the Interim Report 2025 may be obtained from Global Communications, HSBC Holdings plc, 8 Canada Square, London E14

5HQ, United Kingdom; from Communications (Asia), The Hongkong and Shanghai Banking Corporation Limited, 1 Queen's Road Central, Hong

Kong; or from US Communications, HSBC Bank USA, N.A., 1 West 39th Street, 9th Floor, New York, NY 10018, USA. The Interim Report 2025

may also be downloaded from the HSBC website, www.hsbc.com.

Shareholders may at any time choose to receive corporate communications in printed form or to receive notifications of their availability on

HSBC's website. To receive notifications of the availability of a corporate communication on HSBC's website by email, or to revoke or amend an

instruction to receive such notifications by email, go to www.hsbc.com/investors/shareholder-information/manage-your-shareholding. If you

provide an email address to receive electronic communications from HSBC, we will also send notifications of any future dividend entitlements

by email. If you received a notification of the availability of this document on HSBC's website and would like to receive a printed copy or, if you

would like to receive future corporate communications in printed form, please write or send an email (quoting your shareholder reference

number) to the appropriate Registrar at the address given below. Printed copies will be provided without charge.

Any enquiries relating to your shareholdings on the share register (for example transfers of shares, change of name or address, lost share

certificates or dividend cheques) should be sent to the Registrar at the address given below. The Registrars offer an online facility, Investor

Centre, which enables shareholders to manage their shareholding electronically.

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| | | |
|:---|:---|:---|
| **Principal Register:** | Computershare Investor Services PLC<br>The Pavilions, Bridgwater Road, Bristol, BS99 6ZZ, <br>United Kingdom<br>| Telephone: +44 (0) 370 702 0137<br>www.investorcentre.co.uk/contactus<br>Investor Centre: www.investorcentre.co.uk<br>|
| **Hong Kong Overseas Branch Register:** | Computershare Hong Kong Investor<br>Services Limited<br>Rooms 1712-1716, 17th Floor, Hopewell Centre, <br>183 Queen's Road East, Hong Kong <br>| Telephone: +852 2862 8555 <br>hsbc.ecom@computershare.com.hk<br>Investor Centre: www.investorcentre.com/hk<br>|
| **Bermuda Overseas Branch Register:** | Investor Relations Team<br>HSBC Bank Bermuda Limited, 37 Front Street, <br>Hamilton HM 11, Bermuda<br>| hbbm.shareholder.services@hsbc.bm<br>hbbm.mutual.fund@hsbc.bm<br>Investor Centre: www.investorcentre.com/bm<br>|
| **ADS Depository:** | The Bank of New York Mellon<br>Shareowner Services, P.O. Box 43006, Providence <br>RI, 02940-3078, USA<br>| Telephone (US): +1 877 283 5786<br>Telephone (International): +1 201 680 6825 <br>shrrelations@cpushareownerservices.com <br>|

---

A Chinese translation of this and future documents may be obtained on request from the Registrar. Please also contact the Registrar if you have

received a Chinese translation of this document and do not wish to receive such translations in future.

Persons whose shares are held on their behalf by another person may have been nominated to receive communications from HSBC pursuant to

section 146 of the UK Companies Act 2006 ('nominated person'). The main point of contact for a nominated person remains the registered

shareholder (for example your stockbroker, investment manager, custodian or other person who manages the investment on your behalf). Any

changes or queries relating to a nominated person's personal details and holding (including any administration thereof) must continue to be

directed to the registered shareholder and not HSBC's Registrar. The only exception is where HSBC, in exercising one of its powers under the

UK Companies Act 2006, writes to nominated persons directly for a response.

本中期業績報告及日後的相關文件均備有中譯本，如有需要，請向適當的股份登記處索取。股東如收到本報告的中譯本，但不希望再收取此等中譯

本，亦請聯絡股份登記處。

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| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **108** |

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| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | Interim condensed consolidated <br>financial statements<br>| **Additional information** |

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Abbreviations<br>

---

| |
|:---|
| £British pound sterling |
| Canadian dollar |
| Euro |
| Hong Kong dollar |
| Chinese renminbi |
| Singapore dollar |
| $United States dollar |
| First half of 2024 |
| First half of 2025 |
| First quarter of 2024 |
| First quarter of 2025 |
| Second half of 2024 |
| Second quarter of 2024 |
| Second quarter of 2025 |
| Fourth quarter of 2024 |
| Asset-backed security |
| American Depositary Receipt |
| American Depositary Share |
| Artificial intelligence |
| Average interest-bearing liabilities |
| Average interest-earning assets |
| Annualised new business premiums |
| Association of Southeast Asian Nations |
| Additional tier 1 |
| Banking net interest income |
| Basel Committee on Banking Supervision |
| Basel Committee's reforms to strengthen global capital <br>and liquidity rules<br>|
| Outstanding measures to be implemented from the Basel <br>III reforms<br>|
| Bank of Communications Co., Limited, one of China's <br>largest banks<br>|
| Bank of England |
| Basis points. One basis point is equal to one hundredth of <br>a percentage point<br>|
| Capital asset pricing model |
| Commodity Exchange Act |
| Common equity tier 1 |
| Corporate and Institutional Banking, a business segment |
| UK Competition and Markets Authority |
| Capital maintenance charge |
| Chief Operating Decision Maker |
| Contribution for the Financing of Social Security, a <br>Brazilian federal corporation tax<br>|
| Consumer price index |
| Commercial real estate |
| Customer risk rating |
| The regulatory requirements of the Capital Requirements <br>Regulation and Directive, the CRR II regulation and the <br>PRA Rulebook<br>|
| Contractual service margin |
| December |
| Days past due |
| Discretionary participation feature of insurance and <br>investment contracts<br>|
| Disclosure Guidance and Transparency Rules |
| European Banking Authority |
| European Central Bank |

---

---

| | |
|:---|:---|
| ECL | Expected credit losses. In the income statement, ECL is <br>recorded as a change in expected credit losses and other <br>credit impairment charges. In the balance sheet, ECL is <br>recorded as an allowance for financial instruments to <br>which only the impairment requirements in IFRS 9 are <br>applied.<br>|
| EPS | Earnings per ordinary share |
| ESG | Environmental, social and governance |
| EU | European Union |
| EVE | Economic value of equity |
| F |  |
| FCA | Financial Conduct Authority (UK) |
| FRB | Federal Reserve Board (US) |
| FTE | Full-time equivalent staff |
| FVOCI | Fair value through other comprehensive income |
| FX | Foreign exchange |
| G |  |
| GAAP | Generally accepted accounting principles |
| Galicia | Grupo Financiero Galicia |
| GDP | Gross domestic product |
| GOC | Group Operating Committee |
| GPS | Global Payments Solutions, the business formerly known <br>as Global Liquidity and Cash Management<br>|
| Group | HSBC Holdings together with its subsidiary undertakings |
| GTS | Global Trade Solutions, the business formerly known as <br>Global Trade and Receivables Finance <br>|
| H |  |
| HIBOR | Hong Kong interbank offered rate |
| HKEx | The Stock Exchange of Hong Kong Limited |
| HKMA | Hong Kong Monetary Authority |
| Holdings ALCO | HSBC Holdings Asset and Liability Management <br>Committee<br>|
| Hong Kong | Hong Kong Special Administrative Region of the People's <br>Republic of China<br>|
| HQLA | High-quality liquid assets |
| HSBC | HSBC Holdings together with its subsidiary undertakings |
| HSBC Bank plc | HSBC Bank plc, also known as the non-ring-fenced bank |
| HSBC Bank <br>Middle East<br>| HSBC Bank Middle East Limited |
| HSBC Continental <br>Europe<br>| HSBC Continental Europe |
| HSBC Holdings | HSBC Holdings plc, the parent company of HSBC |
| HSBC UK | HSBC UK Bank plc, also known as the ring-fenced bank |
| HSSL | HSBC Securities Services (Luxembourg) |
| I |  |
| IAS | International Accounting Standards |
| IASB | International Accounting Standards Board |
| Ibor | Interbank offered rate |
| ICAAP | Internal capital adequacy assessment process |
| IFRS Accounting<br>Standards<br>| International Financial Reporting Standards as issued by <br>the International Accounting Standards Board<br>|
| ILAAP | Internal liquidity adequacy assessment process |
| IVB | HSBC Innovation Banking |
| IWPB | International Wealth and Premier Banking, a business <br>segment <br>|
| J |  |
| Jan | January |
| Jun | June |
| JV | Joint venture |
| K |  |
| KYC | Know your customer |

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| |
|:---|
| HSBC Holdings plc Interim Report 2025 on Form 6-K |
| **109** |

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| | | | |
|:---|:---|:---|:---|
| Overview | Interim management report | Interim condensed consolidated <br>financial statements<br>| **Additional information** |

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| | |
|:---|:---|
| L |  |
| LCR | Liquidity coverage ratio |
| Libor | London interbank offered rate |
| LTI | Long-term incentive |
| LTV | Loan to value |
| M |  |
| M&A | Mergers and acquisitions |
| Mainland China | People's Republic of China excluding Hong Kong <br>and Macau<br>|
| Mar | March |
| MENAT | Middle East, North Africa and Türkiye |
| MREL | Minimum requirement for own funds and eligible liabilities |
| MSS | Markets and Securities Services, HSBC's capital markets <br>and securities services businesses in Global Banking and <br>Markets<br>|
| N |  |
| Net operating <br>income<br>| Net operating income before change in expected credit <br>losses and other credit impairment charges, also referred <br>to as revenue<br>|
| NII | Net interest income |
| NIM | Net interest margin |
| NSFR | Net stable funding ratio |
| O |  |
| OCI | Other comprehensive income |
| P |  |
| PD | Probability of default |
| PIS | Contribution to the Social Integration Programme, a <br>Brazilian federal corporation tax<br>|
| POCI | Purchased or originated credit-impaired financial assets |
| PRA | Prudential Regulation Authority (UK) |
| Premier | HSBC Premier, HSBC's premium personal global banking <br>service<br>|

---

---

| | |
|:---|:---|
| R |  |
| RAF | Bank of England's Resolvability Assessment Framework |
| RES | Resource and experience sharing agreement |
| RoE | Return on average ordinary shareholders' equity |
| RoTE | Return on average tangible equity |
| RWAs | Risk-weighted assets |
| S |  |
| SAB | Saudi Awwal Bank |
| SEC | Securities and Exchange Commission (US) |
| ServCo group | Separately incorporated group of service companies <br>established in response to UK ring-fencing requirements<br>|
| SFO | Securities and Futures Ordinance of Hong Kong |
| SME | Small and medium-sized enterprise |
| SVaR | Stressed value at risk |
| SVB UK | Silicon Valley Bank UK Limited, now HSBC Innovation <br>Bank Limited<br>|
| T |  |
| TNFD | Taskforce on Nature-related Financial Disclosures |
| U |  |
| UAE | United Arab Emirates |
| UK | United Kingdom |
| UN | United Nations |
| US | United States of America |
| V |  |
| VaR | Value at risk |
| VIU | Value in use |

---

This document comprises the Interim Report 2025 and information

herein has been filed on Form 6-K with the US Securities and

Exchange Commission for HSBC Holdings plc and its subsidiary and

associated undertakings.

**HSBC Holdings plc**

Incorporated in England and Wales on 1 January 1959 with limited

liability under the UK Companies Act

Registration number 617987

Tel: +44 (0)20 7991 8888

**Registered Office and Group Head Office**

8 Canada Square, London E14 5HQ, United Kingdom

Web: www.hsbc.com

Tel: +44(0)20 7991 8888© Copyright HSBC Holdings 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 Holdings plc.

Published by Global Finance, HSBC Holdings plc, London

Designed by Global Finance, HSBC Holdings plc with Design Bridge

and Partners, London

Printed by Park Communications Limited, London, on Nautilus

SuperWhite board and paper using vegetable oil-based inks.

Made in Austria, the stocks comprise 100% de-inked

post-consumer waste. Pulps used are totally chlorine-free.

The FSC® recycled logo identifies a paper which contains

100% post-consumer recycled fibre certified in accordance

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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.

---

| | |
|:---|:---|
| HSBC Holdings plc | HSBC Holdings plc |
| By: | /s/ Manveen (Pam) Kaur |
| Name: | Manveen (Pam) Kaur |
| Title: | Group Chief Financial Officer |

---

Dated: July 30, 2025