REG - HSBC Holdings PLC - Earnings Release 1Q25
Tue 07:00
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RNS Number : 5195G HSBC Holdings PLC 29 April 2025
29 April 2025
HSBC Holdings plc Earnings Release 1Q25
Georges Elhedery, Group CEO, said:
"Our strong results this quarter demonstrate momentum in our earnings,
discipline in the execution of our strategy and confidence in our ability to
deliver our targets. We continue to support our customers through this period
of economic uncertainty and market unpredictability, which we enter from a
position of financial strength."
Financial performance in 1Q25
- Profit before tax decreased by $3.2bn to $9.5bn compared with 1Q24,
primarily due to the non-recurrence of $3.7bn in net impacts in 1Q24 relating
to the disposals of our banking business in Canada and our business in
Argentina. Profit before tax in 1Q25 included strong performances in our
Wealth business in our International Wealth and Premier Banking ('IWPB') and
Hong Kong business segments, and in Foreign Exchange and Debt and Equity
Markets in our Corporate and Institutional Banking ('CIB') segment. Profit
after tax of $7.6bn was $3.3bn lower than in 1Q24.
- Constant currency profit before tax excluding notable items
increased by $1.0bn to $9.8bn compared with 1Q24, as a strong performance in
Wealth and in Foreign Exchange and Debt and Equity Markets was partly offset
by higher expected credit losses and other credit impairment charges ('ECL').
- Annualised return on average tangible equity ('RoTE') in 1Q25 was
17.9%, compared with 26.1% in 1Q24. Excluding notable items, annualised RoTE
in 1Q25 was 18.4%, a rise of 2 percentage points compared with 1Q24.
- Revenue decreased by $3.1bn or 15% to $17.6bn compared with 1Q24.
The reduction reflected the impact of business disposals, notably in Canada
and Argentina. Excluding notable items, revenue increased due to 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 7% to $17.7bn.
- Net interest income ('NII') of $8.3bn fell by $0.4bn compared with
1Q24, reflecting reductions due to business disposals in Canada and Argentina,
and an adverse impact of $0.3bn from foreign currency translation differences.
Excluding these factors, NII increased from the impact of lower interest rates
on funding costs and the benefit of our structural hedge, which more than
offset a reduction in asset yields, in part due to a favourable movement in
our asset mix. The fall in interest rates reduced the funding costs associated
with generating revenue that is recognised in 'net income from financial
instruments held for trading or managed on a fair value basis', arising from
the deployment of our commercial surplus to the trading book. The reduction in
funding costs of the trading book and the decrease in NII led to a fall in
banking net interest income ('banking NII') of $0.7bn or 6% compared with
1Q24.
- NII increased by $0.1bn compared with 4Q24, as the benefit of our
structural hedge, the impact of lower interest rates on funding costs and a
favourable movement in our asset mix were partly offset by the disposal of our
business in Argentina and a lower number of days in 1Q25 than in 4Q24. The
funding costs associated with the trading book decreased by $0.5bn, which
resulted in a fall in banking NII of $0.4bn. Excluding the impact of foreign
currency translation differences and the disposal in Argentina, banking NII
was stable compared with 4Q24.
- Net interest margin ('NIM') of 1.59% decreased by 4 basis points
('bps') compared with 1Q24, mainly due to lower interest rates. NIM increased
by 5bps compared with 4Q24 as the decrease in funding costs of liabilities was
larger than the reduction on asset yields.
- ECL of $0.9bn were $0.2bn higher than in 1Q24 as we increased
allowances to reflect heightened uncertainty and a deterioration in the
forward economic outlook due to geopolitical tensions and higher trade
tariffs.
- Operating expenses of $8.1bn were stable compared with 1Q24. Growth
from higher spend and investment in technology, the impacts of inflation and
restructuring and other related costs associated with our organisational
simplification of $0.1bn in 1Q25 were broadly offset by the impact of our
disposals in Canada and Argentina. Target basis operating expenses were $7.9bn
or $0.3bn higher than in 1Q24.
- Customer lending balances increased by $14bn compared with 4Q24,
including favourable foreign currency translation differences. On a constant
currency basis, lending balances increased by $2bn. This included growth in
term lending in our CIB segment, which was broadly offset by a reduction from
the reclassification of $7bn in 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'.
- Customer accounts increased by $12bn compared with 4Q24, including
favourable foreign currency translation differences. On a constant currency
basis, customer accounts decreased by $9bn, mainly from seasonal outflows in
our CIB segment, partly offset by an increase in IWPB, notably in our legal
entity in Hong Kong and in HSBC Bank plc.
- Common equity tier 1 ('CET1') capital ratio of 14.7% decreased by
0.2 percentage points compared with 4Q24, driven by an increase in
risk-weighted assets ('RWAs'), partly offset by an increase in CET1 capital.
The increase in RWAs was mainly driven by foreign currency translation
differences, asset quality and asset size movements.
- The Board has approved a first interim dividend for 2025 of $0.10
per share. On 25 April, we completed the $2bn share buy-back announced at our
full-year 2024 results. We now intend to initiate a share buy-back of up to
$3bn, which we expect to commence shortly after our annual general meeting on
2 May 2025 and to complete within the period before our 2025 interim results
announcement.
Outlook
- The macroeconomic environment is facing heightened uncertainty, in
particular from protectionist trade policies, creating volatility in both
economic forecasts and financial markets and adversely impacting consumer and
business sentiment. Supporting our clients through this volatile period is our
top priority. The Group is well-positioned to manage the impacts of these
challenges through our high-quality revenue streams, conservative approach to
credit risk and strong deposit franchise.
- We continue to target a mid-teens return on average tangible equity
('RoTE') in each of the three years from 2025 to 2027 excluding notable items,
and we continue to expect banking NII of around $42bn in 2025 based on our
latest modelling, acknowledging the outlook for interest rates has become more
volatile and uncertain.
- We expect ECL charges as a percentage of average gross loans of
between 30bps to 40bps in 2025 (including loans held for sale balances).
- Our targeted growth in operating expenses in 2025 compared with 2024
remains approximately 3%, on a target basis. Our cost target includes the
impact of simplification-related saves associated with our announced
reorganisation, which aims to generate approximately $0.3bn of cost reductions
in 2025, with a commitment to an annualised reduction of around $1.5bn in our
cost base expected 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.
- Given current levels of uncertainty and market turmoil, we expect
demand for lending to remain muted during 2025. However, over the medium to
long term we continue to expect mid-single digit percentage growth for
year-on-year customer lending balances. We continue to expect double-digit
percentage average annual growth in fee and other income in Wealth over the
medium term.
- We intend to manage the CET1 capital ratio within our medium-term
target range of 14% to 14.5%, with a dividend payout ratio target basis of 50%
for 2025, excluding material notable items and related impacts.
u Our targets and expectations reflect our current outlook for the
global macroeconomic environment and market-dependent factors, such as
market-implied interest rates (as of mid-April 2025) and rates of foreign
exchange, as well as customer behaviour and activity levels.
u We do not reconcile our forward guidance on RoTE excluding the impact
of notable items, target basis operating expenses, dividend payout ratio
target basis or banking NII to their equivalent reported measures.
u For further details on our alternative performance measures, including
their basis of preparation, see page 32 for RoTE excluding notable items, page
13 for banking NII, and page 34 for target basis operating expenses and
dividend payout ratio target basis. For further information on our CET1 ratio,
see page 47.
Contents
1 Group CEO statement 18 - CIB
1 Financial performance in 1Q25 19 - IWPB
2 Outlook 21 - Corporate Centre
3 Presentation to investors and analysts 22 Supplementary financial information
3 About HSBC 22 - Reported and constant currency results
3 Reshaping the Group for growth 23 - Business segments
4 Business disposals 28 - Legal entities
4 Bank of Communications, Co., Limited 31 Alternative performance measures
5 Financial summary 31 - Use of alternative performance measures
5 - Key financial metrics 31 - Alternative performance measure definitions
6 - Notes 35 Risk
6 - Use of alternative performance measures 35 - Managing risk
7 - Summary consolidated income statement 36 - Credit risk
8 - Distribution of results by business segment and legal entity 47 - Capital risk
9 - Income statement results 50 Additional information
14 - Summary consolidated balance sheet 50 - Dividends
14 - Balance sheet commentary 51 - Investor relations/media relations contacts
16 Business segments 51 - Cautionary statement regarding forward-looking statements
16 - Hong Kong 53 - Abbreviations
17 - UK
Presentation to investors and analysts
HSBC Holdings plc will be conducting a trading update conference call with
analysts and investors today to coincide with the publication of this Earnings
Release. The call will take place at 07.45am BST. Details of how to
participate in the call and the live audio webcast can be found at
www.hsbc.com/investors.
About HSBC
HSBC Holdings plc, the parent company of HSBC, is headquartered in London.
With assets of $3.1tn at 31 March 2025, HSBC is one of the world's largest
banking and financial services organisations.
HSBC's purpose is 'Opening up a world of opportunity'. Our strategy supports
our ambition to be the preferred international financial partner for our
clients.
Effective from 1 January 2025, we have simplified our organisational structure
to accelerate delivery against our strategic priorities through four new
businesses along with Corporate Centre:
- Hong Kong
- UK
- Corporate and Institutional Banking
- International Wealth and Premier Banking
Our Hong Kong business comprises Retail Banking and Wealth and Commercial
Banking of HSBC Hong Kong and Hang Seng Bank. Our UK business comprises UK
Retail Banking and Wealth (including first direct and M&S Bank) and UK
Commercial Banking, including HSBC Innovation Bank. CIB is formed from the
integration of our Commercial Banking business (outside the UK and Hong Kong)
with our Global Banking and Markets business. IWPB comprises Premier banking
outside of Hong Kong and the UK, our Global Private Bank, and our Asset
Management, Insurance and Investment distribution businesses. Corporate Centre
results primarily comprise the financial impact from certain acquisitions and
disposals and the share of profit from associates and joint ventures and
related impairments. It also includes Central Treasury, stewardship costs and
consolidation adjustments.
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 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. During 1Q25, we commenced the wind-down of our mergers and
acquisitions ('M&A') and equity capital markets activities in the UK,
Europe and the US, subject to local legal requirements. We will retain more
focused M&A and equity capital markets capabilities in Asia and the Middle
East. In addition, we have made progress on our announced divestments in our
private banking business in Germany, our business in South Africa, and the
planned sale of our France life insurance business. We have also launched a
strategic review of our business in Malta. The review is at an early stage and
no decisions have been made.
Strategic growth opportunities include 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.
In 1Q25, we generated fee and other income of $2.9bn from Wholesale
Transaction Banking, an increase of 10% compared with 1Q24, or 13% on a
constant currency basis, reflecting growth in Global Foreign Exchange. Wealth
balances as at 31 March 2025, across all of our business segments, were
$1.9tn, an increase of 7% compared with the same period last year. Within this
we have attracted net new invested assets of $22bn in the first three months
of 2025, with $16bn booked in Asia. In the first three months of 2024, net new
invested assets were $27bn, with $19bn booked in Asia. Total Wealth fee and
other income across all of our business segments was up $0.4bn or 21% compared
with 1Q24, or 23% on a constant currency basis, with the increase mainly in
Asia. There was a strong performance in our insurance business, which was up
13%, and growth in insurance manufacturing new business contractual service
margin ('CSM') of $1.1bn, up 44% compared with 1Q24.
While the external environment is now more uncertain, our strategy remains
unchanged and we approach this period from a position of strength. We have
assessed plausible downside scenarios that model significantly higher tariffs,
and related impacts on growth, policy rates and inflation on our earnings.
Under these scenarios, we anticipate a low single-digit percentage direct
impact on the Group's revenue and around $0.5bn in incremental ECLs. The
broader impacts of the current conditions are more difficult to quantify, and
we will continue to monitor these as we formulate our ongoing outlook.
Business disposals
Retained portfolio of home and 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 ($7.9bn) 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 and during
1Q25, we recognised a fair value pre-tax loss in other comprehensive income of
$1.3bn on the remeasurement of the financial instruments, which resulted in an
approximately 0.2 percentage point reduction in the Group's CET1 ratio. The
valuation of this portfolio of loans may be substantially different in the
event of a sale due to entity and deal-specific factors, including funding
costs and the value of customer relationships. In the event of a sale, upon
completion, the cumulative fair value changes recognised through other
comprehensive income, which would reflect the terms of an agreed sale, would
reclassify to the income statement. In December 2024, we entered into
non-qualifying economic hedges, hedging interest rate risk on the portfolio
and recognised a $0.1bn mark-to-market gain in 1Q25 in 'net income from
financial instruments held for trading or managed on a fair value basis'.
Other disposals
On 23 September 2024, HSBC Continental Europe, a wholly-owned subsidiary of
HSBC Bank plc, reached an agreement to sell its private banking business in
Germany to BNP Paribas. The disposal group met the held for sale criteria,
with balances classified as held for sale at 31 March 2025 of $2.0bn in
assets and $2.0bn 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 the
held for sale criteria, with balances classified as held for sale at 31 March
2025 of $0.8bn in assets and $3.1bn in liabilities. The transaction, which is
subject to regulatory and governmental approvals, is expected to complete in
the second half of 2025. At closing, cumulative foreign currency translation
reserves and other reserves will recycle to the income statement. At 31 March
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 is subject to regulatory approvals, is expected to
complete in the second half of 2025. The disposal group met the held for sale
criteria, with balances classified as held for sale at 31 March 2025 of
$24.9bn in assets and $24.0bn in liabilities, and the recognition of an
immaterial loss on disposal that will be recognised largely on completion. 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 is subject to 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.
Bank of Communications, Co., Limited
On 30 March 2025, Bank of Communications Co., Limited ('BoCom'), announced its
intention to consider a share issuance plan of up to RMB120bn to the Ministry
of Finance of the People's Republic of China and related entities (the
'Issuance'). The Issuance was approved at an Extraordinary General Meeting on
16 April 2025 and is subject to final approval by relevant government and
regulatory authorities. The Issuance is part of a series of policy actions
announced by the People's Bank of China, Ministry of Finance, National
Financial Regulatory Administration and China Securities Regulatory Commission
on 24 September 2024. The Issuance is intended to further strengthen BoCom's
capital and enhance capital adequacy, in order to, among other things, provide
strong support for BoCom to respond to the evolving domestic and international
economic landscape and maintain its own growth in the future.
Upon completion of the Issuance, we anticipate that our stake in BoCom will
reduce from 19.03% to approximately 16%, resulting in a pre-tax loss in the
range of $1.2bn to $1.6bn to be recognised in the income statement, subject to
timing of execution, foreign exchange and other movements. The loss would not
be deductible for tax purposes as a consequence of our shareholding in BoCom
being held for long-term investment purposes. The loss is expected to have no
material impact on HSBC's capital ratios or distribution capacity, and will be
treated as a material notable item and be excluded from our dividend payout
ratio. We continue to recognise our proportionate share of BoCom's profit or
loss through associate income. For further details on how we account for our
share of profit or loss from BoCom, see page 355 of our Annual Report and
Accounts 2024.
Financial summary
Key financial metrics
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
Reported results
Profit before tax ($m) 9,484 2,277 12,650
Profit after tax ($m) 7,570 585 10,837
Revenue ($m) 17,649 11,564 20,752
Cost efficiency ratio (%) 45.9 74.4 39.3
Net interest margin (%) 1.59 1.54 1.63
Basic earnings per share ($) 0.39 0.01 0.54
Diluted earnings per share ($) 0.39 0.01 0.54
Dividend per ordinary share (in respect of the period) ($)(1) 0.10 0.36 0.31
Alternative performance measures
Constant currency profit before tax ($m) 9,484 2,197 12,501
Constant currency revenue ($m) 17,649 11,363 20,359
Constant currency cost efficiency ratio (%) 45.9 74.7 39.0
Constant currency profit before tax excluding notable items ($m) 9,766 7,241 8,816
Constant currency revenue excluding notable items ($m) 17,740 16,303 16,627
Constant currency profit before tax excluding notable items and strategic 9,766 7,206 8,615
transactions ($m)
Constant currency revenue excluding notable items and strategic transactions 17,740 16,172 16,039
($m)
Expected credit losses and other credit impairment charges (annualised) as a % 0.37 0.56 0.29
of average gross loans and advances to customers (%)
Expected credit losses and other credit impairment charges (annualised) as a % 0.37 0.56 0.28
of average gross loans and advances to customers, including held for sale (%)
Basic earnings per share excluding material notable items and related impacts 0.39 0.29 0.34
($)
Return on average ordinary shareholders' equity (annualised) (%) 16.6 0.5 24.0
Return on average tangible equity (annualised) (%) 17.9 0.5 26.1
Return on average tangible equity excluding notable items (annualised) (%) 18.4 13.2 16.4
Target basis operating expenses ($m) 7,911 8,318 7,644
At
31 Mar 2025 31 Dec 2024 31 Mar 2024
Balance sheet
Total assets ($m) 3,054,361 3,017,048 3,000,517
Net loans and advances to customers ($m) 944,708 930,658 933,125
Customer accounts ($m) 1,666,485 1,654,955 1,570,164
Average interest-earning assets, year to date ($m) 2,124,161 2,099,285 2,140,446
Loans and advances to customers as % of customer accounts (%) 56.7 56.2 59.4
Total shareholders' equity ($m) 190,810 184,973 191,186
Tangible ordinary shareholders' equity ($m) 160,398 154,295 162,008
Net asset value per ordinary share at period end ($) 9.74 9.26 9.28
Tangible net asset value per ordinary share at period end ($) 9.08 8.61 8.67
Capital, leverage and liquidity
Common equity tier 1 capital ratio (%)(2,3) 14.7 14.9 15.2
Risk-weighted assets ($m)(2,3) 853,257 838,254 832,633
Total capital ratio (%)(2,3) 19.9 20.6 20.7
Leverage ratio (%)(2,3) 5.4 5.6 5.7
High-quality liquid assets (liquidity value) ($m)(3,4) 660,704 649,210 645,789
Liquidity coverage ratio (%)(3,4) 139 138 136
Share count
Period end basic number of $0.50 ordinary shares outstanding, after deducting 17,668 17,918 18,687
own shares held (millions)
Period end basic number of $0.50 ordinary shares outstanding and dilutive 17,836 18,062 18,838
potential ordinary shares, after deducting own shares held (millions)
Average basic number of $0.50 ordinary shares outstanding, after deducting own 17,769 18,042 18,823
shares held (millions)
u For reconciliations of our reported results to a constant currency
basis, including lists of notable items, see page 22. Definitions and
calculations of other alternative performance measures are included in
'Alternative performance measures' on page 31.
1 The dividend per ordinary share in respect of the quarter ended 31
March 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.
2 Regulatory capital ratios and requirements are based on the
transitional arrangements of the Capital Requirements Regulation in force at
the time up to 31 December 2024, after which the transitional arrangements
ceased to apply. References to EU regulations and directives (including
technical standards) should, as applicable, be read as references to the UK's
version of such regulations or directives, as onshored into UK law under the
European Union (Withdrawal) Act 2018, and as may be subsequently amended under
UK law.
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.
4 The liquidity coverage ratio is based on the average value of the
preceding 12 months.
Notes
- Income statement comparisons, unless stated otherwise, are between
the quarter ended 31 March 2025 and the quarter ended 31 March 2024. Balance
sheet comparisons, unless otherwise stated, are between balances at 31 March
2025 and the corresponding balances at 31 December 2024.
- Effective from 1 January 2025, the Group's operating segments
comprise four new businesses along with Corporate Centre. All segmental
comparative data have been re-presented on this basis.
- Unless otherwise stated, the factors impacting constant currency
income statement performance between periods are the same factors discussed in
relation to reported income statement performance for the same periods.
- The financial information on which this 1Q25 Earnings Release
is based is unaudited. It has been prepared in accordance with our material
accounting policies as described on pages 353 to 365 of the Annual Report and
Accounts 2024.
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 our financial statements
starting on page 341 of the Annual Report and Accounts 2024.
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 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 below.
Definitions and calculations of other alternative performance measures are
included in 'Alternative performance measures' on page 31. All alternative
performance measures are reconciled to the closest reported performance
measure.
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 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. Material notable items in 1Q25 or relevant
comparative periods relate to transactions completed in 2024, comprising 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.
u The tables on pages 23 to 25 and pages 28 to 30 detail the effects of
notable items on each of our business segments and legal entities in 1Q25,
4Q24 and 1Q24.
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. At 1Q25, strategic transactions
classified as material notable items in current or relevant comparative
periods relate to transactions completed in 2024, comprising the disposal of
our retail banking operations in France, the disposal of our banking business
in Canada and the sale of our business in Argentina.
The impact of strategic transactions also includes the distorting impact
between the periods of the operating income statement results related to
acquisitions and disposals 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.
u For further details, see 'Strategic transactions supplementary
analysis' on page 26.
Foreign currency translation differences
Foreign currency translation differences reflect the movements of the US
dollar against most major currencies during 2025. We exclude them to derive
constant currency data, allowing 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 for 1Q25 are computed by
retranslating into US dollars for non-US dollar branches, subsidiaries, joint
ventures and associates:
- the income statements for 4Q24 and 1Q24 at the average rate of
exchange for 1Q25;
- the closing prior period balance sheets at the prevailing rates of
exchange on 31 March 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.
Summary consolidated income statement
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Net interest income 8,302 8,185 8,653
Net fee income 3,324 2,979 3,146
Net income from financial instruments held for trading or managed on a fair 5,356 5,302 5,406
value basis(1)
Net income/(expense) from assets and liabilities of insurance businesses, 1,521 (1,988) 1,292
including related derivatives, measured at fair value through profit or loss
Insurance finance (expense)/income (1,556) 1,970 (1,327)
Insurance service result 347 309 306
Gains/(losses) recognised on sale of business operations(2) 2 (5,048) 3,417
Other operating (expense)/income 353 (145) (141)
Net operating income before change in expected credit losses and other credit 17,649 11,564 20,752
impairment charges(3)
Change in expected credit losses and other credit impairment charges (876) (1,362) (720)
Net operating income 16,773 10,202 20,032
Total operating expenses excluding amortisation and impairment of intangible (7,489) (8,010) (7,647)
assets
Amortisation and impairment of intangible assets (613) (594) (504)
Operating profit 8,671 1,598 11,881
Share of profit in associates and joint ventures 813 679 769
Profit before tax 9,484 2,277 12,650
Tax expense (1,914) (1,692) (1,813)
Profit after tax 7,570 585 10,837
Attributable to:
- ordinary shareholders of the parent company 6,932 197 10,183
- other equity holders 392 154 401
- non-controlling interests 246 234 253
Profit after tax 7,570 585 10,837
$ $ $
Basic earnings per share 0.39 0.01 0.54
Diluted earnings per share 0.39 0.01 0.54
Dividend per ordinary share (paid in the period) - 0.10 -
% % %
Return on average ordinary shareholders' equity (annualised) 16.6 0.5 24.0
Return on average tangible equity (annualised) 17.9 0.5 26.1
Cost efficiency ratio 45.9 74.4 39.3
1 Amount in 1Q25 includes a $117m mark-to-market gain (4Q24: $114m
gain) on interest rate hedging of the portfolio of retained loans post sale of
our retail banking operations in France and a $92m mark-to-market loss (4Q24:
$39m gain) on Grupo Financiero Galicia's ('Galicia') American Depositary
Receipts ('ADRs') received as purchase consideration from the sale of our
business in Argentina. Amount in 1Q24 includes a $255m gain on the foreign
exchange hedging of the proceeds from the sale of our banking business in
Canada.
2 Includes amounts from 'Other operating income' relating to the
execution of all sales of business operations. In 4Q24, a $5.2bn loss on the
recycling of foreign currency translation reserve losses and other reserves
arising on the sale of our business in Argentina, was recognised. In 1Q24, a
gain of $4.6bn inclusive of the recycling of $0.6bn in foreign currency
translation reserve losses and $0.4bn of other reserves losses but excluding
the $255m gain on the foreign exchange hedging (see footnote above) on the
sale of our banking business in Canada, and an impairment loss of $1.1bn
relating to the sale of our business in Argentina, was recognised.
3 Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as revenue.
Distribution of results by business segment and legal entity
Distribution of results by business segment
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Constant currency revenue(1)
Hong Kong 4,006 3,817 3,686
UK 3,003 3,012 2,877
CIB 7,187 6,478 6,692
IWPB 3,511 3,131 3,496
Corporate Centre (58) (5,075) 3,608
Total 17,649 11,363 20,359
Constant currency profit/(loss) before tax
Hong Kong 2,543 2,162 2,315
UK 1,551 1,481 1,656
CIB 3,520 2,093 3,173
IWPB 1,188 496 1,192
Corporate Centre 682 (4,035) 4,165
Total 9,484 2,197 12,501
1 Constant currency net operating income before change in expected
credit losses and other credit impairment charges including the effects of
foreign currency translation differences, also referred to as constant
currency revenue.
Distribution of results by legal entity
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Reported profit/(loss) before tax
HSBC UK Bank plc 1,711 1,658 1,811
HSBC Bank plc 1,013 208 697
The Hongkong and Shanghai Banking Corporation Limited 6,126 4,465 5,457
HSBC Bank Middle East Limited 283 247 283
HSBC North America Holdings Inc. 266 386 253
HSBC Bank Canada - - 186
Grupo Financiero HSBC, S.A. de C.V. 188 48 186
Other trading entities 448 352 390
- of which: other Middle East entities (including Türkiye, Egypt and Saudi 239 205 214
Arabia)
- of which: Saudi Awwal Bank 176 133 145
Holding companies, shared service centres and intra-Group eliminations(1) (551) (5,087) 3,387
Total 9,484 2,277 12,650
Constant currency profit/(loss) before tax
HSBC UK Bank plc 1,711 1,628 1,798
HSBC Bank plc 1,013 202 688
The Hongkong and Shanghai Banking Corporation Limited 6,126 4,434 5,429
HSBC Bank Middle East Limited 283 247 283
HSBC North America Holdings Inc. 266 388 253
HSBC Bank Canada - - 176
Grupo Financiero HSBC, S.A. de C.V. 188 47 155
Other trading entities 448 349 336
- of which: other Middle East entities (including Türkiye, Egypt and Saudi 239 200 159
Arabia)
- of which: Saudi Awwal Bank 176 133 145
Holding companies, shared service centres and intra-Group eliminations(1) (551) (5,098) 3,383
Total 9,484 2,197 12,501
1 Quarter ended 31 December 2024 included a $5.2bn loss on the
recycling of foreign currency translation reserve losses and other reserves
arising on the sale of our business in Argentina. Quarter ended 31 March 2024
included 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 losses. This was partly offset by a $1.1bn
impairment recognised in relation to the sale of our business in Argentina.
u The tables on pages 23 to 30 reconcile reported to constant
currency results for each of our business segments and legal entities.
Income statement results
1Q25 compared with 1Q24 - reported results
Movement in reported profit compared with 1Q24
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Mar 2024 of which strategic
transactions(1)
$m $m $m % $m
Revenue 17,649 20,752 (3,103) (15) (4,472)
- of which: net interest income 8,302 8,653 (351) (4) (787)
ECL (876) (720) (156) (22)
101
Operating expenses (8,102) (8,151) 49 1
393
Share of profit from associates and JVs 813 769 44 6
-
Profit before tax 9,484 12,650 (3,166) (25) (3,979)
Tax expense (1,914) (1,813) (101) (6)
Profit after tax 7,570 10,837 (3,267) (30)
1 For details, see 'Strategic transactions supplementary analysis' on
page 26.
Supplementary management view of revenue
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Mar 2024 of which strategic
transactions(1)
$m $m $m % $m
Revenue 17,649 20,752 (3,103) (15) (4,472)
Banking NII(2) 10,599 11,266 (667) (6) (816)
Fee and other income 7,050 9,486 (2,436) (26) (3,656)
- Notable items (91) 3,732 (3,823) >(100) (3,814)
- Wealth 2,290 1,893 397 21
(62)
- Wholesale Transaction Banking 2,851 2,597 254 10
(71)
- Other 2,000 1,264 736 58 291
1 For details, see 'Strategic transactions supplementary analysis' on
page 26.
2 For a reconciliation of banking NII to reported net interest income,
see page 13.
Notable items
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs (91) (4,986) 3,732
Early redemption of legacy securities - 46 -
Currency translation on revenue notable items - - -
Operating expenses
Disposals, wind-downs, acquisitions and related costs (50) (50) (63)
Restructuring and other related costs (141) (56) 13
Currency translation on operating expenses notable items - 2 3
1Q25 compared with 1Q24 - constant currency basis
Movement in profit before tax compared with 1Q24 - on a constant currency
basis
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Mar 2024 of which strategic
transactions(1)
$m $m $m % $m
Revenue 17,649 20,359 (2,710) (13) (4,402)
ECL (876) (674) (202) (30)
85
Operating expenses (8,102) (7,945) (157) (2)
346
Share of profit from associates and JVs 813 761 52 7
-
Profit before tax 9,484 12,501 (3,017) (24) (3,971)
1 For details, see 'Strategic transactions supplementary analysis' on
page 26.
1Q25 compared with 1Q24 - performance commentary
Profit before tax
Reported profit before tax of $9.5bn was $3.2bn lower than in 1Q24, primarily
reflecting the impact of notable items. These included the non-recurrence of a
$4.8bn gain in 1Q24 on the disposal of our banking business in Canada, partly
offset by a loss of $1.1bn in 1Q24 on classification of our business in
Argentina as held for sale. The reduction in profit before tax was partly
offset by strong performances in fee and other income in Wealth in our IWPB
and Hong Kong business segments, and Wholesale Transaction Banking in our CIB
segment, which mitigated a reduction in banking NII.
Reported operating expenses were broadly stable, while ECL increased, mainly
due to an increased weighting of economic assumptions to the downside
scenarios.
Reported profit after tax of $7.6bn was $3.3bn lower than in 1Q24.
On a constant currency basis, profit before tax of $9.5bn was $3.0bn lower
than in 1Q24.
Revenue
Reported revenue of $17.6bn was $3.1bn or 15% lower than in 1Q24, reflecting a
net adverse movement in notable items of $3.7bn, primarily relating to our
disposals in Canada and Argentina. Revenue excluding notable items increased,
reflecting higher fee and other income in Wealth, mainly from strong
performances in Global Private Banking and investment distribution reflecting
increased customer activity, and in Insurance from a higher CSM release. 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 fell by $0.4bn compared with 1Q24, including an adverse impact of foreign
currency translation differences of $0.3bn and the impact of business
disposals in Canada and Argentina. Excluding these factors, NII increased from
the impact of lower interest rates on funding costs and the benefit of our
structural hedge, which more than offset a reduction in asset yields, in part
due to a favourable movement in our asset mix. The fall in interest rates
reduced the funding costs associated with generating revenue that is
recognised in 'net income from financial instruments held for trading or
managed on a fair value basis', arising from the deployment of our commercial
surplus to the trading book. The reduction in funding costs of the trading
book and the decrease in NII led to a fall in banking NII of $0.7bn to
$10.6bn.
On a constant currency basis, revenue decreased by $2.7bn or 13%, and included
a reduction of $4.4bn relating to the impact of strategic transactions.
Banking NII fell by $0.3bn on a constant currency basis.
ECL
Reported ECL of $0.9bn were $0.2bn higher than in 1Q24, as we increased
allowances to reflect heightened uncertainty and deterioration in the forward
economic outlook due to geopolitical tensions and higher trade tariffs. ECL in
1Q25 included charges of $0.1bn against exposures in the onshore Hong Kong
commercial real estate sector.
On a constant currency basis, ECL charges were $0.2bn higher than in 1Q24.
u For further details of the calculation of ECL, including the
measurement uncertainties and significant judgements applied to such
calculations, the impact of the economic scenarios and management judgemental
adjustments, see pages 40 to 45.
Operating expenses
Reported operating expenses of $8.1bn were broadly stable. There were
reductions due to the completion of disposals in Canada and Argentina and a
favourable impact from foreign currency translation differences of $0.2bn.
These reductions were partly offset by $0.1bn of restructuring and other
related costs in 1Q25 related to our organisational simplification, mainly
severance costs that are classified as notable items. Cost growth also
reflected higher spend and investment in technology and the impacts of
inflation.
On a constant currency basis, operating expenses increased by $0.2bn or 2%.
Target basis operating expenses were $0.3bn or 3.5% higher than in 1Q24.
Share of profit from associates and JVs
Reported share of profit from associates and joint ventures of $0.8bn was $44m
or 6% higher. This included a higher share of profit from Saudi Awwal Bank
('SAB') and BoCom.
Tax expense
Tax in 1Q25 was a charge of $1.9bn, representing an effective tax rate of
20.2%. The effective tax rate for 1Q25 increased by 0.7% due to charges in
respect of prior periods. Tax in 1Q24 was a charge of $1.8bn, representing an
effective tax rate of 14.3%. The effective tax rate for 1Q24 was reduced by
the non-taxable gain on the sale of our banking business in Canada and
increased by a non-deductible loss recorded in relation to the sale of the
Group's business in Argentina.
First interim dividend for 2025
On 29 April 2025, the Board announced a first interim dividend for 2025 of
$0.10 per ordinary share. For further details, see page 50.
1Q25 compared with 4Q24 - reported results
Movement in reported profit compared with 4Q24
Quarter ended
Variance
1Q25 vs. 4Q24
31 Mar 2025 31 Dec 2024 of which strategic
transactions(1)
$m $m $m % $m
Revenue 17,649 11,564 6,085 53 4,744
- of which: net interest income 8,302 8,185 117 1 (142)
ECL (876) (1,362) 486 36
9
Operating expenses (8,102) (8,604) 502 6
124
Share of profit from associates and JVs 813 679 134 20
-
Profit before tax 9,484 2,277 7,207 >100 4,877
Tax expense (1,914) (1,692) (222) (13)
Profit after tax 7,570 585 6,985 >100
1 For details, see 'Strategic transactions supplementary analysis' on
page 26.
Supplementary management view of revenue
Quarter ended
Variance
1Q25 vs. 4Q24
31 Mar 2025 31 Dec 2024 of which strategic
transactions(1)
$m $m $m % $m
Revenue 17,649 11,564 6,085 53 4,744
Banking NII(2) 10,599 10,950 (351) (3) (165)
Fee and other income 7,050 614 6,436 >100 4,909
- Notable items (91) (4,986) 4,895 (98) 4,886
- Wealth 2,290 1,758 532 30
(22)
- Wholesale Transaction Banking 2,851 2,533 318 13
(14)
- Other 2,000 1,309 691 53 59
1 For details, see 'Strategic transactions supplementary analysis' on
page 26.
2 For a reconciliation of banking NII to reported net interest income,
see page 13.
1Q25 compared with 4Q24 - constant currency basis
Movement in profit before tax compared with 4Q24 - on a constant currency
basis
Quarter ended
Variance
1Q25 vs. 4Q24
31 Mar 2025 31 Dec 2024 of which strategic
transactions(1)
$m $m $m % $m
Revenue 17,649 11,363 6,286 55 4,753
ECL (876) (1,347) 471 35 8
Operating expenses (8,102) (8,492) 390 5
116
Share of profit from associates and JVs 813 673 140 21 -
Profit before tax 9,484 2,197 7,287 >100 4,877
1 For details, see 'Strategic transactions supplementary analysis' on
page 26.
1Q25 compared with 4Q24 - performance commentary
Profit before tax
Reported profit before tax of $9.5bn was $7.2bn higher, reflecting a net
favourable impact of notable items of $4.8bn, primarily the non-recurrence of
a $5.2bn loss in 4Q24 from the recycling of foreign currency translation
reserve losses and other reserves following the disposal of our business in
Argentina. In addition, higher revenue included growth in Wealth in our IWPB
and Hong Kong business segments, and increases in Debt and Equity Markets, and
Global Foreign Exchange in our CIB segment. ECL were lower than in 4Q24 and
operating expenses also fell.
Reported profit after tax of $7.6bn was $7.0bn higher than in 4Q24.
On a constant currency basis, profit before tax of $9.5bn was $7.3bn higher
than in 4Q24. Constant currency profit before tax excluding notable items of
$9.8bn was $2.5bn or 35% higher.
Revenue
Reported revenue of $17.6bn was $6.1bn or 53% higher, which included a net
favourable impact of $4.8bn of notable items, primarily the non-recurrence of
a $5.2bn loss in 4Q24 following the disposal of our business in Argentina.
The growth in reported revenue also reflected a rise in fee and other income
from the impact of higher customer activity across Wealth products in our IWPB
and Hong Kong business segments, and an increase in Debt and Equity Markets in
our CIB segment. Fee and other income from Wholesale Transaction Banking also
increased, primarily in Global Foreign Exchange, driven by increased market
volatility in 1Q25.
NII of $8.3bn increased by $0.1bn, as the benefit of our structural hedge, the
impact of lower interest rates on funding costs and a favourable movement in
our asset mix were partly offset by the disposal of our business in Argentina
and a lower number of days in 1Q25 than in 4Q24. The funding costs associated
with the trading book decreased by $0.5bn, resulting in a reduction in banking
NII of $0.4bn or 3% to $10.6bn. Excluding the impact of foreign currency
translation differences and the disposal in Argentina, banking NII was stable
compared with 4Q24.
On a constant currency basis revenue increased by $6.3bn or 55%, and included
a $4.8bn favourable impact from strategic transactions.
ECL
Reported ECL charges of $0.9bn were $0.5bn lower than in 4Q24. ECL in 4Q24
included stage 3 charges relating to exposures in the mainland China
commercial real estate sector, as well as a charge relating to a single
exposure in the UK. In 1Q25, ECL included charges to reflect heightened
uncertainty and deterioration in the forward economic outlook due to
geopolitical tensions and higher trade tariffs.
On a constant currency basis ECL charges were $0.5bn lower than in 4Q24.
Operating expenses
Reported operating expenses of $8.1bn were $0.5bn or 6% lower, which included
favourable foreign currency translation differences between the periods of
$0.1bn. The reduction reflected the non-recurrence of banking levies of
$0.2bn, which were mainly incurred in the fourth quarter, and the impact of
the disposal of our business in Argentina. These reductions were partly offset
by an increase in notable items, including restructuring and other related
costs, primarily related to severance, and higher spend and investment in
technology.
Operating expenses decreased by $0.4bn or 5% on a constant currency basis.
Target basis operating expenses fell by 5% compared with 4Q24, mainly due to
the reduction in bank levy charges that were incurred in the fourth quarter.
The number of employees expressed in full-time equivalent staff ('FTE') at 31
March 2025 was 211,940, an increase of 636 compared with 31 December 2024.
The number of contractors at 31 March 2025 was 4,060, a decrease of 166 since
31 December 2024.
Share of profit from associates and JVs
Reported share of profit from associates and joint ventures of $0.8bn was
$0.1bn higher. This included an increase in the share of profit from BoCom and
SAB.
Net interest income
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Interest income 24,413 26,004 28,265
Interest expense (16,111) (17,819) (19,612)
Net interest income 8,302 8,185 8,653
Average interest-earning assets 2,124,161 2,113,276 2,140,446
% % %
Gross interest yield(1) 4.66 4.90 5.31
Less: gross interest payable(1) (3.34) (3.60) (4.10)
Net interest spread(2) 1.32 1.30 1.21
Net interest margin(3) 1.59 1.54 1.63
1 Gross 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 ('AIBL').
2 Net 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 funds.
3 Net interest margin is net interest income expressed as an
annualised percentage of AIEA.
Net interest income
NII in 1Q25 was $8.3bn, a decrease of $0.4bn or 4% compared with 1Q24, mainly
due to the business disposals in Argentina and Canada, which resulted in
reductions of $0.5bn and $0.3bn respectively. Excluding these factors, NII
increased from the impact of lower interest rates on funding costs and the
benefit of our structural hedge, which more than offset a reduction in asset
yields, in part due to a favourable movement in our asset mix. Excluding the
adverse effect of foreign currency translation differences, NII was stable
compared with 1Q24.
NII in 1Q25 compared with 4Q24 was up $0.1bn, as the benefit of our structural
hedge, the impact of lower interest rates on funding costs and a favourable
movement in our asset mix were partly offset by a reduction of $0.2bn from the
disposal of our business in Argentina and a lower number of days in 1Q25 than
in 4Q24.
Net interest margin
NIM for 1Q25 of 1.59% was 4 basis points ('bps') lower compared with 1Q24,
reflecting lower interest rates. NIM was up 5bps in 1Q25 compared with 4Q24,
mainly driven by higher margins in Asia and Europe as the cost of liabilities
fell more than asset yields. Excluding the adverse effect of foreign currency
translation differences, NIM in 1Q25 was stable compared with 1Q24.
Interest income and interest expense
Interest income in 1Q25 of $24.4bn decreased by $3.9bn or 14% compared with
1Q24, and by $1.6bn or 6% compared with 4Q24, due to the business disposals
referred to above and lower market interest rates. Excluding the adverse
effect of foreign currency translation differences, interest income fell by
$3.1bn compared with 1Q24, and by $1.3bn compared with 4Q24.
Interest expense in 1Q25 of $16.1bn decreased by $3.5bn or 18% compared with
1Q24, and by $1.7bn or 10% compared with 4Q24, due to the business disposals
referred to above and lower market interest rates. Excluding the favourable
effects of foreign currency translation differences, interest expense fell by
$3.2bn compared with 1Q24, and by $1.5bn compared with 4Q24.
Banking net interest income
Banking NII is an alternative performance measure, and is defined as Group NII
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 costs 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 NII 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 costs reported in NII 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 NII.
Third-party NII in our insurance business is deducted from reported NII in
IWPB to compute banking NII. Total insurance NII is presented in 'fee and
other income' in the Insurance product within Wealth in IWPB's management view
of revenue, with intercompany NII presented in 'other'.
Banking NII was $10.6bn in 1Q25, a reduction of $0.7bn or 6% compared with
1Q24. The fall in banking NII included reductions from the disposal of our
business in Argentina of $0.5bn and our banking business in Canada of $0.3bn.
The funding costs associated with generating trading and fair value income
were $2.4bn, a decrease of $0.3bn compared with 1Q24, primarily reflecting a
reduction in interest rates. An increase in NII in our main legal entities in
Asia and Europe included the benefit of lower interest rates on funding costs
and the impact of our structural hedge, which was broadly offset by a
corresponding reduction in those entities of the funding costs of the trading
book that are deducted from NII to derive banking NII.
The internally allocated funding of the net trading and fair value asset base
was approximately $200bn at 31 March 2025, a rise of approximately $13bn since
31 March 2024, and broadly stable compared with 31 December 2024. This relates
to trading, fair value and associated net asset balances predominantly in CIB.
Banking net interest income
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Net interest income 8,302 8,185 8,653
Banking book funding costs used to generate 'net income from financial 2,403 2,874 2,722
instruments held for trading or managed on a fair value basis'
Third-party net interest income from insurance (106) (109) (109)
Banking net interest income 10,599 10,950 11,266
Currency translation (133) (367)
Banking net interest income - on a constant currency basis 10,599 10,817 10,899
Banking net interest income - on a reported basis 10,599 10,950 11,266
- of which:
The Hongkong and Shanghai Banking Corporation Limited 5,439 5,464 5,435
HSBC UK Bank plc 2,662 2,663 2,530
HSBC Bank plc 1,104 1,182 1,109
Summary consolidated balance sheet
At
31 Mar 2025 31 Dec 2024
$m $m
Assets
Cash and balances at central banks 254,660 267,674
Trading assets 318,579 314,842
Financial assets designated and otherwise mandatorily measured at fair value 120,340 115,769
through profit or loss
Derivatives 214,148 268,637
Loans and advances to banks 100,843 102,039
Loans and advances to customers 944,708 930,658
Reverse repurchase agreements - non-trading 278,216 252,549
Financial investments 522,298 493,166
Assets held for sale 28,131 27,234
Other assets 272,438 244,480
Total assets 3,054,361 3,017,048
Liabilities
Deposits by banks 88,186 73,997
Customer accounts 1,666,485 1,654,955
Repurchase agreements - non-trading 197,979 180,880
Trading liabilities 72,402 65,982
Financial liabilities designated at fair value 149,195 138,727
Derivatives 212,584 264,448
Debt securities in issue 100,051 105,785
Insurance contract liabilities 112,541 107,629
Liabilities of disposal groups held for sale 30,000 29,011
Other liabilities 226,821 203,361
Total liabilities 2,856,244 2,824,775
Equity
Total shareholders' equity 190,810 184,973
Non-controlling interests 7,307 7,300
Total equity 198,117 192,273
Total liabilities and equity 3,054,361 3,017,048
Balance sheet commentary
Balance sheet - 31 March 2025 compared with 31 December 2024
At 31 March 2025, our total assets of $3.1tn were $37bn higher on a reported
basis and included favourable effects of foreign currency translation
differences of $40bn. On a constant currency basis, total assets were $2bn
lower, driven by a decrease in derivative assets and lower cash and balances
at central banks. These were partly offset by an increase in settlement
accounts, growth in financial investments balances, and higher reverse
repurchase agreements.
Loans and advances to customers as a percentage of customer accounts were
56.7%, compared with 56.2% at 31 December 2024.
Combined view of customer lending and customer deposits
At
31 Mar 2025 31 Dec 2024
$m $m
Loans and advances to customers 944,708 930,658
Loans and advances to customers of disposal groups reported in 'Assets held 1,246 965
for sale'
- private banking business in Germany 315 309
- business in South Africa 746 656
- retail banking business in Bahrain 185 -
Non-current assets held for sale 12
Combined customer lending 945,954 931,635
Currency translation - 12,159
Combined customer lending at constant currency 945,954 943,794
Customer accounts 1,666,485 1,654,955
Customer accounts reported in 'Liabilities of disposal groups held for sale' 5,874 5,399
- private banking business in Germany 1,976 2,085
- business in South Africa 3,030 3,294
- retail banking business in Bahrain 865 -
- other 3 20
Combined customer deposits 1,672,359 1,660,354
Currency translation - 20,282
Combined customer deposits at constant currency 1,672,359 1,680,636
Loans and advances to customers
Loans and advances to customers of $0.9tn were $14bn higher on a reported
basis. This included favourable effects of foreign currency translation
differences of $12bn. Excluding foreign currency translation differences,
customer lending balances increased by $2bn. The increase included growth in
our CIB segment, mainly in term lending, which was broadly offset by a
reduction of $7bn in Corporate Centre 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'.
The following movements are on a constant currency basis.
In our Hong Kong business, customer lending decreased by $2bn. This was driven
by lower credit card advances balances, reflecting reduced spending by
customers and a decrease in term lending. Mortgage balances also decreased due
to ongoing repayments.
In our UK business, customer lending rose by $2bn, primarily driven by
continued growth in mortgage balances.
In CIB, customer lending increased by $7bn. This was driven by term lending
growth in our main legal entities in Asia, including in India and Australia,
an increase in overdraft balances in HSBC Bank plc, and to a lesser extent
growth in our entities in the Middle East and the US.
In IWPB, customer lending increased by $2bn, primarily driven by growth in
Global Private Banking in our main legal entity in Hong Kong.
Customer accounts
Customer accounts of $1.7tn increased by $12bn on a reported basis. This
included favourable effects of foreign currency translation differences of
$20bn, mainly in our UK entities. Excluding foreign currency translation
differences, customer accounts decreased by $9bn.
The following movements are on a constant currency basis.
In our Hong Kong and UK business segments, customer accounts remained stable.
In CIB, customer accounts decreased by $12bn. This was driven by lower
balances in our legal entities in Asia and the US, primarily reflecting
seasonal outflows in 1Q25.
In IWPB, customer accounts rose by $5bn, primarily driven by growth in Global
Private Banking in our legal entity in Hong Kong and in HSBC Bank plc, mainly
in term deposits.
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 31 March 2025, we had recognised a
pre-tax cumulative unrealised loss reserve through other comprehensive income
of $2.7bn 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 $1.1bn pre-tax gain in
1Q25, 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 1Q25, we recognised a fair value post-tax loss in other comprehensive
income of $1.3bn on the remeasurement of these financial instruments.
Overall, the Group is positively exposed to rising interest rates through NII,
although there is an adverse impact on our capital base in the early stages of
a rising interest rate environment due to the fair value of
hold-to-collect-and-sell instruments. Over time, these adverse movements will
unwind as the instruments reach maturity, although not all will necessarily be
held to maturity, or as interest rates begin to fall.
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 31 March 2025, the debt instruments within this portfolio
had a cumulative unrecognised loss of $1.0bn, representing a $1.9bn
improvement during 1Q25.
Risk-weighted assets - 31 March 2025 compared with 31 December 2024
RWAs of $853.3bn increased by $15.0bn, primarily due to foreign currency
translation differences of $8.0bn and $4.7bn of asset quality movements in
Hong Kong and the UK, and asset size movements of $4.5bn, principally from our
UK and US CIB business.
u For further details on RWAs, see page 48.
Business segments
The Group Operating Committee is considered to be the Chief Operating Decision
Maker ('CODM') for the purposes of identifying the Group's reportable
segments.
The Group Operating Committee reviews operating activity on a number of bases,
including by business segments and legal entities. 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'. Business segment results are
assessed by the CODM on the basis of constant currency performance, which
removes the effects of currency translation impacts from reported results.
Therefore, we present these results on a constant currency basis.
As required by IFRS 8, reconciliations of the constant currency results to the
Group's reported results are presented on page 22. Supplementary
reconciliations of constant currency to reported results by business segment
are presented on pages 23 to 27 for information purposes.
Management view of revenue
Our business segment commentary includes tables that provide breakdowns of
revenue 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, Global Trade Solutions and Securities Services businesses.
Wealth comprises our Investment Distribution, Insurance, Global Private
Banking and Asset Management businesses.
On page 9, 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 consistent product grouping that we use
to assess and manage our segmental performance.
Hong Kong business - constant currency basis
Results - on a constant currency basis
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Dec 2024 31 Mar 2024 of which strategic transactions(1)
$m $m $m $m % $m
Revenue 4,006 3,817 3,686 320 9
-
ECL (320) (355) (234) (86) (37)
-
Operating expenses (1,143) (1,300) (1,137) (6) (1)
-
Share of profit/(loss) from associates and JVs - - - - -
-
Profit before tax 2,543 2,162 2,315 228 10
-
1 Impact of strategic transactions classified as material notable
items. For further details, see 'Strategic transactions supplementary
analysis' on page 26.
Management view of revenue - on a constant currency basis
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Dec 2024 31 Mar 2024 of which strategic transactions(3)
$m $m $m $m % $m
Banking NII(1) 3,040 3,060 2,956 84 3
-
Fee and other income 966 757 730 236 32
-
- Retail Banking and Wealth 661 502 442 219 50
-
- Retail Banking 87 74 61 26 43
-
- Wealth 546 416 361 185 51
-
- Other(2) 28 12 20 8 40
- Commercial Banking 305 255 288 17 6
-
- Wholesale Transaction Banking 176 179 168 8 5
-
- Credit and Lending 27 18 25 2 8
-
- Other(2) 102 58 95 7 7
-
Revenue excluding notable items 4,006 3,817 3,686 320 9
-
Notable items - - - - -
-
Revenue 4,006 3,817 3,686 320 9
-
RoTE (annualised) (%) 37.3 38.0
1 For a description of how we derive banking NII, see page 13. In the
Hong Kong business, there are no adjustments to net interest income to derive
banking NII.
2 Includes revenue from Markets Treasury. It also includes other
non-product specific income and notional tax credits.
3 Impact of strategic transactions classified as material notable
items. For further details, see 'Strategic transactions supplementary
analysis' on page 26.
Notable items
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Operating expenses
Restructuring and other related costs (7) - -
Currency translation on operating expenses notable items - - -
1Q25 compared with 1Q24
Profit before tax of $2.5bn was $0.2bn or 10% higher than in 1Q24 on a
constant currency basis. This was driven by an increase in revenue of $0.3bn
or 9%, mainly from a strong performance in fee and other income in Wealth.
This was partly offset by an increase in ECL compared with 1Q24.
Revenue of $4.0bn was $0.3bn or 9% higher on a constant currency basis.
Banking NII of $3.0bn increased by $0.1bn or 3%. The increase was driven by
deposit balance growth of $36bn or 8% and a lower cost of funding as interest
rates reduced. This was partly offset by lower lending balances and the impact
of lower interest rates on both lending yields and earnings on our commercial
surplus.
Fee and other income of $1.0bn was up by $0.2bn or 32%. The growth was mainly
driven by Wealth fee and other income of $0.5bn, which increased by $0.2bn or
51%, reflecting a strong performance in investment distribution due to
elevated market volatility, leading to higher client activity.
ECL of $0.3bn in 1Q25 increased by $0.1bn compared with 1Q24 on a constant
currency basis. The 1Q25 period included higher charges due to a deterioration
in the forward economic outlook and higher charges in the Hong Kong commercial
real estate sector.
Operating expenses of $1.1bn were stable on a constant currency basis.
UK business - constant currency basis
Results - on a constant currency basis
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Dec 2024 31 Mar 2024 of which strategic transactions(1)
$m $m $m $m % $m
Revenue 3,003 3,012 2,877 126 4
-
ECL (169) (167) (54) (115) >(100)
-
Operating expenses (1,283) (1,364) (1,167) (116) (10)
-
Share of profit/(loss) from associates and JVs - - - - -
-
Profit before tax 1,551 1,481 1,656 (105) (6)
-
1 Impact of strategic transactions classified as material notable
items. For further details, see 'Strategic transactions supplementary
analysis' on page 26.
Management view of revenue - on a constant currency basis
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Dec 2024 31 Mar 2024 of which strategic transactions(3)
$m $m $m $m % $m
Banking NII(1) 2,561 2,524 2,414 147 6
-
Fee and other income 442 488 463 (21) (5)
-
- Retail Banking and Wealth 151 176 168 (17) (10)
-
- Retail Banking 62 80 52 10 19
-
- Wealth 86 76 97 (11) (11)
-
- Other(2) 3 20 19 (16) (84)
-
- Commercial Banking 291 312 295 (4) (1)
-
- Wholesale Transaction Banking 216 216 215 1 -
-
- Credit and Lending 53 54 49 4 8
-
- Other(2) 22 42 31 (9) (29)
-
Revenue excluding notable items 3,003 3,012 2,877 126 4
-
Notable items - - - - -
-
Revenue 3,003 3,012 2,877 126 4
-
RoTE (annualised) (%) 22.8 26.4
1 For a description of how we derive banking NII, see page 16. In the
UK business, there are no adjustments to net interest income to derive banking
NII.
2 Includes revenue from Markets Treasury. It also includes other
non-product specific income and notional tax credits.
3 Impact of strategic transactions classified as material notable
items. For further details, see 'Strategic transactions supplementary
analysis' on page 26.
Notable items
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Operating expenses
Disposals, wind-downs, acquisitions and related costs - 4 -
Restructuring and other related costs (4) 1 2
Currency translation on operating expenses notable items - - -
1Q25 compared with 1Q24
Profit before tax of $1.6bn was $0.1bn or 6% lower than in 1Q24 on a constant
currency basis. The rise in revenue was primarily from higher banking NII,
including the benefit of our structural hedge, which was more than offset by
higher ECL charges and growth in operating expenses.
Revenue of $3.0bn was $0.1bn or 4% higher on a constant currency basis.
Banking NII of $2.6bn increased by $0.1bn or 6%. This included the benefit of
our structural hedge and higher allocated NII from Markets Treasury. The
increase also reflected higher lending balances across major products and
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 began to
stabilise.
Fee and other income of $0.4bn fell by 5%. In Retail Banking and Wealth, a
rise in transaction volumes in Retail Banking was more than offset by lower
fees on foreign exchange transactions in Wealth. In Commercial Banking, fee
and other income was broadly stable.
ECL of $0.2bn in 1Q25 increased by $0.1bn compared with 1Q24 on a constant
currency basis. The increase reflected the non-recurrence of releases against
retail exposures in 1Q24.
Operating expenses of $1.3bn increased by $0.1bn or 10% on a constant currency
basis, due to higher spend and investment in technology and in our operational
resilience, partly mitigated by continued cost discipline.
Corporate and Institutional Banking - constant currency basis
Results - on a constant currency basis
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Dec 2024 31 Mar 2024 of which strategic transactions(1)
$m $m $m $m % $m
Revenue 7,187 6,478 6,692 495 7 (355)
ECL (169) (519) (171) 2 1
60
Operating expenses (3,498) (3,866) (3,348) (150) (4)
136
Share of profit/(loss) from associates and JVs - - - - -
-
Profit before tax 3,520 2,093 3,173 347 11 (159)
1 Impact of strategic transactions classified as material notable
items. For further details, see 'Strategic transactions supplementary
analysis' on page 26.
Management view of revenue - on a constant currency basis
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Dec 2024 31 Mar 2024 of which strategic transactions(3)
$m $m $m $m % $m
Banking NII(1) 3,444 3,541 3,692 (248) (7) (402)
Fee and other income 3,743 2,937 3,000 743 25
46
- Wholesale Transaction Banking 2,458 2,107 2,151 307 14
(62)
- Investment Banking 250 229 234 16 7
(3)
- Debt and Equity Markets 1,018 502 694 324 47
6
- Wholesale Credit and Lending 143 150 158 (15) (9)
(47)
- Other(2) (126) (51) (237) 111 47
152
Revenue excluding notable items 7,187 6,478 6,692 495 7 (355)
Notable items - - - - -
-
Revenue 7,187 6,478 6,692 495 7 (355)
RoTE (annualised) (%) 18.7 16.0
1 For a description of how we derive banking NII, see page 16. In CIB,
there are no adjustments to net interest income 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 1Q25, this funding cost was $2.4bn (1Q24: $2.7bn).
2 Includes allocated revenue from Markets Treasury and
hyperinflationary impacts. It also includes notional tax credits.
3 Impact of strategic transactions classified as material notable
items. For further details, see 'Strategic transactions supplementary
analysis' on page 26.
Notable items
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Operating expenses
Disposals, wind-downs, acquisitions and related costs (26) (11) (1)
Restructuring and other related costs (46) (6) 3
Currency translation on operating expenses notable items - 1 -
1Q25 compared with 1Q24
Profit before tax of $3.5bn was $0.3bn higher than in 1Q24 on a constant
currency basis. Revenue increased, reflecting strong performances in Foreign
Exchange in Wholesale Transaction Banking and in Debt and Equity Markets, as
well as higher revenue allocated from Corporate Centre, primarily related to
lower adverse hyperinflationary impacts following the disposal of our business
in Argentina. The increase in revenue was partly offset by higher operating
expenses.
Revenue of $7.2bn was $0.5bn or 7% higher on a constant currency basis,
including the adverse impact of the disposals of our businesses in Canada and
Argentina. The underlying growth was driven by strong momentum in fee and
other income in Wholesale Transaction Banking and Debt and Equity Markets.
Banking NII of $3.4bn decreased by $0.2bn or 7%, including a reduction of
$0.4bn due to business disposals in Canada and Argentina. Banking NII
reflected the impact of lower interest rates on margins and changes in product
mix in Global Payments Solutions ('GPS'), although this was offset by 6%
growth in average GPS balances. Banking NII increased in Global Trade
Solutions ('GTS') due to higher balances and higher margins, mainly in our
legal entities in Asia. In addition, there was lower allocated interest
expense from HSBC Holdings.
Fee and other income of $3.7bn increased by $0.7bn or 25%.
- In Wholesale Transaction Banking, fee and other income increased by
$0.3bn or 14%, mainly due to higher income in Global Foreign Exchange from
elevated market volatility in 1Q25 despite continued margin compression.
- In Debt and Equity Markets, fee and other income was up $0.3bn or
47%, driven by new client onboarding in prime finance and robust institutional
financing demand. Revenue from equity derivatives benefited from the rise in
market volatility resulting from the uncertain macroeconomic outlook.
- In Other, fee and other income decreased by $0.1bn, largely due to
adverse hyperinflationary impacts in Argentina in 1Q24 which did not recur
following the disposal of our business there.
ECL charges of $0.2bn were broadly stable on a constant currency basis.
Operating expenses of $3.5bn were $0.2bn or 4% higher than in 1Q24 on a
constant currency basis. The increase included restructuring and other related
costs, and costs associated with business wind-downs. It also reflected higher
spend and investment in technology, and inflationary impacts. These increases
were in part mitigated by continued cost discipline and the impact of the sale
of our banking business in Canada.
International Wealth and Premier Banking - constant currency basis
Results - on a constant currency basis
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Dec 2024 31 Mar 2024 of which strategic transactions(1)
$m $m $m $m % $m
Revenue 3,511 3,131 3,496 15 - (286)
ECL (227) (304) (208) (19) (9)
25
Operating expenses (2,106) (2,335) (2,108) 2 -
168
Share of profit/(loss) from associates and JVs 10 4 12 (2) (17)
-
Profit before tax 1,188 496 1,192 (4) -
(93)
1 Impact of strategic transactions classified as material notable
items. For further details, see 'Strategic transactions supplementary
analysis' on page 26.
Management view of revenue - on a constant currency basis
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024 Variance
1Q25 vs. 1Q24
of which strategic transactions(3)
$m $m $m $m % $m
Banking NII(1) 1,706 1,782 1,977 (271) (14) (285)
Fee and other income 1,819 1,376 1,466 353 24
53
- Retail Banking 153 175 186 (33) (18)
(17)
- Wealth 1,659 1,255 1,409 250 18
(57)
- Other(2) 7 (54) (129) 136 >100
126
Revenue excluding notable items 3,525 3,158 3,443 82 2 (233)
Notable items (14) (27) 53 (67) >(100)
(53)
Revenue 3,511 3,131 3,496 15 - (286)
RoTE (annualised) (%) 19.2 18.1
1 For a description of how we derive banking NII, see page 13. Banking
NII in IWPB is computed by deducting third-party NII in our insurance business
from total IWPB NII, which was $0.1bn in 1Q25 (1Q24: $0.1bn). Total Insurance
NII is presented in 'fee and other income' in Wealth.
2 Includes allocated revenue from Markets Treasury and
hyperinflationary impacts. It also includes other non-product-specific income.
3 Impact of strategic transactions classified as material notable
items. For further details, see 'Strategic transactions supplementary
analysis' on page 26.
Notable items
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs (14) (27) 53
Currency translation on revenue notable items - - -
Operating expenses
Disposals, wind-downs, acquisitions and related costs (4) (2) (1)
Restructuring and other related costs (23) (15) -
Currency translation on operating expenses notable items - - 1
1Q25 compared with 1Q24
Profit before tax of $1.2bn was stable compared with 1Q24 on a constant
currency basis.
Revenue of $3.5bn was $15m higher on a constant currency basis.
Banking NII of $1.7bn decreased by $0.3bn or 14%, primarily driven by the
impact of business disposals in Canada and Argentina, and the effects of lower
interest rates. This reduction was partly offset by balance sheet growth.
Fee and other income of $1.8bn was up by $0.4bn or 24%, driven by higher
customer activity in all Wealth products, mainly in Hong Kong.
In Wealth, fee and other income of $1.7bn was up $0.3bn or 18%, due to growth
in Global Private Banking of $0.1bn or 34%, as increased customer activity led
to strong performances in brokerage and trading, and from higher annuity fees.
Insurance increased by $0.1bn or 14%, reflecting a higher CSM release given
continued year-on-year growth in our CSM balances, with a 1Q25 balance of
$12.8bn, up $0.9bn or 7%, which included a reduction of $0.9bn from the
reclassification of our life insurance business in France to held for sale.
ECL of $0.2bn in 1Q25 increased by $19m compared with 1Q24 on a constant
currency basis.
Operating expenses of $2.1bn were stable on a constant currency basis,
reflecting the impact of business disposals in Canada and Argentina and
continued cost discipline. This was broadly offset by increases reflecting
continued investments in Wealth, higher spend and investment in technology,
and the impact of inflation.
Corporate Centre - constant currency basis
Results - on a constant currency basis
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Dec 2024 31 Mar 2024 of which strategic transactions(1)
$m $m $m $m % $m
Revenue (58) (5,075) 3,608 (3,666) >(100) (3,761)
ECL 9 (2) (7) 16 >100
-
Operating expenses (72) 373 (185) 113 61
42
Share of profit from associates and JVs less impairment 803 669 749 54 7
-
Profit before tax 682 (4,035) 4,165 (3,483) (84) (3,719)
1 Impact of strategic transactions classified as material notable
items. For further details, see 'Strategic transactions supplementary
analysis' on page 26.
Management view of revenue - on a constant currency basis
Quarter ended
Variance
1Q25 vs. 1Q24
31 Mar 2025 31 Dec 2024 31 Mar 2024 of which strategic transactions(4)
$m $m $m $m % $m
Banking NII(1) (152) (137) (141) (11) (8)
-
Fee and other income(2) 171 (25) 70 101 >100 -
Revenue excluding notable items 19 (162) (71) 90 >100
-
Notable items (77) (4,913) 3,679 (3,756) >(100) (3,761)
Revenue(3) (58) (5,075) 3,608 (3,666) >(100) (3,761)
RoTE (annualised) (%) 5.1 36.2
1 For a description of how we derive banking NII, see page 13. Banking
NII in Corporate Centre is computed by 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'. Corporate Centre banking net interest expense includes funding
charges on property and technology assets, and the banking NII of the retained
retail loan portfolio in France.
2 'Fee and other income' includes gains and losses on certain
transactions, valuation differences on issued long-term debt and associated
swaps, fair value movements on financial instruments, revaluation gains and
losses on investment properties and property disposals, as well as
consolidation adjustments and other revenue items not allocated to business
segments.
3 Revenue from Markets Treasury, HSBC Holdings net interest expense
and hyperinflation are allocated out to the business segments, to align them
better with their revenue and expense. The total Markets Treasury revenue
component of this allocation for 1Q25 was $514m (1Q24: $454m).
4 Impact of strategic transactions classified as material notable
items. For further details, see 'Strategic transactions supplementary
analysis' on page 26.
Notable items
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs(1) (77) (4,959) 3,679
Restructuring and other related costs - - -
Early redemption of legacy securities - 46 -
Currency translation on revenue notable items 1 - -
Operating expenses
Disposals, wind-downs, acquisitions and related costs (20) (41) (61)
Restructuring and other related costs (61) (36) 8
Currency translation on operating expenses notable items - 1 2
1 1Q25 includes fair value losses on ADRs in Galicia received as part
of the sale consideration for HSBC Argentina; 1Q24 included gains on the
disposal of our banking business in Canada, inclusive of foreign exchange
hedging of the sale proceeds, the recycling of foreign currency translation
and other reserve losses. 1Q24 also included an impairment recognised in
relation to the sale of our business in Argentina; 4Q24 included losses on the
completion of our disposal of our business in Argentina, including the
recycling of foreign currency and other reserve losses.
1Q25 compared with 1Q24
Profit before tax of $0.7bn was $3.5bn lower than in 1Q24 on a constant
currency basis. This reduction primarily reflected the non-recurrence of a
1Q24 gain of $4.8bn following the sale of our banking business in Canada,
inclusive of fair value gains on the hedging of the sales proceeds and
recycling of related reserves. This was partly offset by the non-recurrence of
an impairment of $1.1bn in 1Q24 recognised following the classification of our
business in Argentina as held for sale.
Revenue of $0.1bn was $3.7bn lower on a constant currency basis, primarily due
to the impact of notable items. In 1Q24, these included the impacts related to
business disposals in Canada and Argentina, as mentioned above. In 1Q25,
notable items included $0.1bn of fair value losses on ADRs in Galicia received
as part of the sale consideration for HSBC Argentina.
Banking NII was a net expense of $0.2bn. This was stable compared with 1Q24 on
a constant currency basis. Banking NII in 1Q25 excluded the internal cost to
fund trading and fair value net assets, predominantly in CIB, of $2.4bn (1Q24:
$2.7bn).
Fee and other income of $0.2bn was $0.1bn higher, primarily due to $0.1bn of
fair value gains on non-qualifying hedges related to our retained French
portfolio of home and certain other loans.
Operating expenses reduced by $0.1bn on a constant currency basis. The
reduction included the non-recurrence of a 1Q24 charge in the US related to
the incremental cost of the FDIC special assessment, as well as a reduction
associated with disposals, acquisitions and related costs. This was partly
offset by restructuring and other related costs associated with our
reorganisation activities.
Share of profit from associates and joint ventures of $0.8bn increased by
$0.1bn or 7% on a constant currency basis, which included increases in share
of profit from BoCom and SAB.
Supplementary financial information
Reported and constant currency results
Reported and constant currency results(1)
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Revenue(2)
Reported 17,649 11,564 20,752
Currency translation (201) (393)
Constant currency 17,649 11,363 20,359
Change in expected credit losses and other credit impairment charges
Reported (876) (1,362) (720)
Currency translation 15 46
Constant currency (876) (1,347) (674)
Operating expenses
Reported (8,102) (8,604) (8,151)
Currency translation 112 206
Constant currency (8,102) (8,492) (7,945)
Share of profit in associates and joint ventures
Reported 813 679 769
Currency translation (6) (8)
Constant currency 813 673 761
Profit before tax
Reported 9,484 2,277 12,650
Currency translation (80) (149)
Constant currency 9,484 2,197 12,501
Profit after tax
Reported 7,570 585 10,837
Currency translation (55) (104)
Constant currency 7,570 530 10,733
Loans and advances to customers (net)
Reported 944,708 930,658 933,125
Currency translation 12,159 267
Constant currency 944,708 942,817 933,392
Customer accounts
Reported 1,666,485 1,654,955 1,570,164
Currency translation 20,282 4,943
Constant currency 1,666,485 1,675,237 1,575,107
1 In the current period, constant currency results are equal to
reported as there is no currency translation.
2 Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as revenue.
Notable items
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs(1) (91) (4,986) 3,732
Early redemption of legacy securities - 46 -
Operating expenses
Disposals, wind-downs, acquisitions and related costs (50) (50) (63)
Restructuring and other related costs(2) (141) (56) 13
Tax
Tax (charge)/credit on notable items 65 15 8
1 1Q25 includes fair value losses on ADRs in Galicia received as part
of the sale consideration for HSBC Argentina; 1Q24 included gains on the
disposal of our banking business in Canada, inclusive of foreign exchange
hedging of the sale proceeds, the recycling of foreign currency translation
and other reserve losses. 1Q24 also included an impairment recognised in
relation to the sale of our business in Argentina; 4Q24 included losses on the
completion of our disposal of our business in Argentina, including the
recycling of foreign currency and other reserve losses.
2 Amounts relate to restructuring provisions recognised in 1Q25 and
4Q24 as well as reversals of restructuring provisions recognised during 2022.
Business segments
Constant currency results and notable items by business segment
Constant currency results(1)
Quarter ended 31 Mar 2025
Hong Kong UK CIB IWPB Corporate Total
Centre
$m $m $m $m $m $m
Revenue(2) 4,006 3,003 7,187 3,511 (58) 17,649
ECL (320) (169) (169) (227) 9 (876)
Operating expenses (1,143) (1,283) (3,498) (2,106) (72) (8,102)
Share of profit in associates and joint ventures - - - 10 803 813
Profit before tax 2,543 1,551 3,520 1,188 682 9,484
Loans and advances to customers (net)(3) 233,054 276,965 295,097 139,416 176 944,708
Customer accounts 505,334 339,570 554,760 266,428 393 1,666,485
1 In the current period, constant currency results are equal to
reported, as there is no currency translation.
2 Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as revenue.
3 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
Quarter ended 31 Mar 2025
Hong Kong UK CIB IWPB Corporate Centre Total
$m $m $m $m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs(1) - - - (14) (77) (91)
Operating expenses
Disposals, wind-downs, acquisitions and related costs - - (26) (4) (20) (50)
Restructuring and other related costs(2) (7) (4) (46) (23) (61) (141)
1 Includes fair value losses on ADRs in Galicia received as part of
the sale consideration for HSBC Argentina.
2 Amounts relate to restructuring provisions recognised in 2025 as
well as reversals of restructuring provisions recognised during 2022.
Constant currency results (continued)
Quarter ended 31 Mar 2024
Hong Kong UK CIB IWPB Corporate Total
Centre
$m $m $m $m $m $m
Revenue(1)
Reported 3,667 2,897 6,916 3,671 3,601 20,752
Currency translation 19 (20) (224) (175) 7 (393)
Constant currency 3,686 2,877 6,692 3,496 3,608 20,359
ECL
Reported (233) (55) (179) (247) (6) (720)
Currency translation (1) 1 8 39 (1) 46
Constant currency (234) (54) (171) (208) (7) (674)
Operating expenses
Reported (1,132) (1,175) (3,433) (2,224) (187) (8,151)
Currency translation (5) 8 85 116 2 206
Constant currency (1,137) (1,167) (3,348) (2,108) (185) (7,945)
Share of profit/(loss) in associates and joint ventures
Reported - - - 13 756 769
Currency translation - - - (1) (7) (8)
Constant currency - - - 12 749 761
Profit before tax
Reported 2,302 1,667 3,304 1,213 4,164 12,650
Currency translation 13 (11) (131) (21) 1 (149)
Constant currency 2,315 1,656 3,173 1,192 4,165 12,501
Loans and advances to customers (net)
Reported 234,372 262,743 291,946 136,237 7,827 933,125
Currency translation 1,343 5,656 (3,192) (3,538) (2) 267
Constant currency 235,715 268,399 288,754 132,699 7,825 933,392
Customer accounts
Reported 466,779 324,432 523,660 254,903 390 1,570,164
Currency translation 2,747 6,983 (1,492) (3,300) 5 4,943
Constant currency 469,526 331,415 522,168 251,603 395 1,575,107
1 Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as revenue.
Notable items (continued)
Quarter ended 31 Mar 2024
Hong Kong UK CIB IWPB Corporate Total
Centre
$m $m $m $m $m $m
Notable items
Revenue
Disposals, wind-downs, acquisitions and related costs(1) - - - 53 3,679 3,732
Operating expenses
Disposals, wind-downs, acquisitions and related costs - - (1) (1) (61) (63)
Restructuring and other related costs(2) - 2 3 - 8 13
1 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 losses. This was partly offset by a $1.1bn
impairment recognised in relation to the sale of our business in Argentina.
2 Amounts relate to reversals of restructuring provisions recognised
during 2022.
Constant currency results (continued)
Quarter ended 31 Dec 2024
Hong Kong UK CIB IWPB Corporate Total
Centre
$m $m $m $m $m $m
Revenue(1)
Reported 3,820 3,068 6,560 3,174 (5,058) 11,564
Currency translation (3) (56) (82) (43) (17) (201)
Constant currency 3,817 3,012 6,478 3,131 (5,075) 11,363
ECL
Reported (356) (170) (524) (310) (2) (1,362)
Currency translation 1 3 5 6 - 15
Constant currency (355) (167) (519) (304) (2) (1,347)
Operating expenses
Reported (1,302) (1,389) (3,913) (2,367) 367 (8,604)
Currency translation 2 25 47 32 6 112
Constant currency (1,300) (1,364) (3,866) (2,335) 373 (8,492)
Share of profit in associates and joint ventures
Reported - - - 4 675 679
Currency translation - - - - (6) (6)
Constant currency - - - 4 669 673
Profit before tax
Reported 2,162 1,509 2,123 501 (4,018) 2,277
Currency translation - (28) (30) (5) (17) (80)
Constant currency 2,162 1,481 2,093 496 (4,035) 2,197
Loans and advances to customers (net)
Reported 235,208 267,293 284,701 136,325 7,131 930,658
Currency translation (315) 7,756 3,278 1,157 283 12,159
Constant currency 234,893 275,049 287,979 137,482 7,414 942,817
Customer accounts
Reported 507,389 330,012 557,796 259,443 315 1,654,955
Currency translation (771) 9,576 9,038 2,430 9 20,282
Constant currency 506,618 339,588 566,834 261,873 324 1,675,237
1 Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as revenue.
Notable items (continued)
Quarter ended 31 Dec 2024
Hong Kong UK CIB IWPB Corporate Total
Centre
$m $m $m $m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs(1) - - - (27) (4,959) (4,986)
Early redemption of legacy securities - - - - 46 46
Operating expenses
Disposals, wind-downs, acquisitions and related costs - 4 (11) (2) (41) (50)
Restructuring and other related costs(2) - 1 (6) (15) (36) (56)
1 Includes a $5.2bn loss on the recycling in foreign currency
translation reserve losses and other reserves arising on sale of our business
in Argentina.
2 Amounts relate to restructuring provisions recognised in 2024 and
reversals of restructuring provisions recognised during 2022.
Reconciliation of reported risk-weighted assets to constant currency
risk-weighted assets
The following table reconciles reported and constant currency RWAs.
Reconciliation of reported risk-weighted assets to constant currency
risk-weighted assets
At 31 Mar 2025
Hong Kong UK CIB IWPB Corporate Total
Centre
$bn $bn $bn $bn $bn $bn
Risk-weighted assets
Reported 144.9 139.8 394.7 86.5 87.4 853.3
Constant currency 144.9 139.8 394.7 86.5 87.4 853.3
At 31 Dec 2024
Risk-weighted assets
Reported 143.7 133.5 388.0 85.7 87.4 838.3
Currency translation 3.9 3.0 0.6 0.4 7.7
(0.2)
Constant currency 143.5 137.4 391.0 86.3 87.8 846.0
At 31 Mar 2024
Risk-weighted assets
Reported 147.0 124.2 383.7 87.8 89.9 832.6
Currency translation 0.8 2.7 -
(6.1) (3.4) (6.0)
Constant currency 147.8 126.9 377.6 84.4 89.9 826.6
Strategic transactions supplementary analysis
The following table presents the selected impacts of strategic transactions to
the Group and our business segments for transactions that are classified as
material notable items. At 1Q25, strategic transactions classified as material
notable items in current and comparative periods relate to transactions
completed in 2024, comprising the disposal of our retail banking operations in
France, the disposal of our banking business in Canada and the sale of our
business in Argentina.
The impact of strategic transactions also includes the distorting impact
between the periods of the operating income statement results related to
acquisitions and disposals 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.
Constant currency results
Quarter ended 31 Mar 2025
Hong Kong UK CIB IWPB Corporate Total
Centre
$m $m $m $m $m $m
Revenue - - - - (75) (75)
ECL - - - - - -
Operating expenses - - - - (16) (16)
Share of profit in associates and joint ventures - - - - - -
Profit before tax - - - - (92) (92)
- HSBC Innovation Banking - - - - - -
- retail banking operations in France - - - - - -
- banking business in Canada - - - - - -
- business in Argentina - - - - (92) (92)
of which: notable items
Revenue - - - - (75) (75)
Profit before tax - - - - (92) (92)
of which: distorting impact of operating results between periods
Revenue - - - - - -
Profit/(loss) before tax - - - - - -
Constant currency results (continued)
Quarter ended 31 Dec 2024
Hong Kong UK CIB IWPB Corporate Total
Centre
$m $m $m $m $m $m
Revenue - - 59 72 (4,960) (4,829)
ECL - - 3 (12) - (9)
Operating expenses - 4 (46) (51) (39) (132)
Share of profit in associates and joint ventures - - - - - -
Profit/(loss) before tax - 4 17 9 (4,999) (4,969)
- HSBC Innovation Banking(1) - 4 - - - 4
- retail banking operations in France - - - - 1 1
- banking business in Canada - - - - 1 1
- business in Argentina - - 17 9 (5,001) (4,975)
of which: notable items
Revenue - - - - (4,960) (4,960)
Profit/(loss) before tax - 4 (9) - (4,999) (5,004)
of which: distorting impact of operating results between periods
Revenue - - 59 72 - 131
Profit/(loss) before tax - - 26 9 - 35
Quarter ended 31 Mar 2024
Revenue - - 355 286 3,686 4,327
ECL - - (60) (25) - (85)
Operating expenses - - (136) (168) (59) (363)
Share of profit in associates and joint ventures - - - - - -
Profit before tax - - 159 93 3,627 3,879
- HSBC Innovation Banking(1) - - - - - -
- retail banking operations in France - - - 53 (1) 52
- banking business in Canada - - 144 67 4,765 4,976
- business in Argentina - - 15 (27) (1,137) (1,149)
of which: notable items
Revenue - - - 53 3,686 3,739
Profit before tax - - (1) 52 3,627 3,678
of which: distorting impact of operating results between periods
Revenue - - 355 233 - 588
Profit before tax - - 160 41 - 201
1 Includes the impact of our acquisition of SVB UK, which in June 2023
changed its legal entity name to HSBC Innovation Bank Limited.
Legal entities
Constant currency results and notable items by legal entity
Legal entity results - on a constant currency basis(1)
Quarter ended 31 Mar 2025
HSBC UK Bank plc HSBC Bank plc The Hongkong and Shanghai Banking Corporation Limited HSBC Bank Middle East Limited HSBC North America Holdings Inc. HSBC Bank Canada Grupo Other trading entities(2) Holding Total
Financiero
HSBC, S.A. companies,
de C.V.
shared
service
centres and
intra-Group
eliminations
$m $m $m $m $m $m $m $m $m $m
Revenue(3) 3,211 2,720 9,382 619 1,171 - 823 593 (870) 17,649
ECL (187) (39) (353) (26) (86) - (180) (5) - (876)
Operating expenses (1,313) (1,665) (3,538) (310) (819) - (459) (317) 319 (8,102)
Share of profit/(loss) in associates and joint ventures - (3) 635 - - - 4 177 - 813
Profit before tax 1,711 1,013 6,126 283 266 - 188 448 (551) 9,484
Loans and advances to customers (net) 282,969 101,516 453,681 21,085 56,648 - 23,843 4,967 (1) 944,708
Customer accounts 349,850 307,594 839,433 34,572 97,533 - 26,701 10,760 42 1,666,485
1 In the current period, constant currency results are equal to
reported, as there is no currency translation.
2 Other 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 Group reported profit before tax of $415m.
3 Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as revenue.
Notable items
Quarter ended 31 Mar 2025
HSBC UK Bank plc HSBC Bank plc The Hongkong and Shanghai Banking Corporation Limited HSBC Bank Middle East Limited HSBC North America Holdings Inc. HSBC Bank Canada Grupo Other trading entities Holding Total
Financiero
HSBC, S.A. companies,
de C.V.
shared
service
centres and
intra-Group
eliminations
$m $m $m $m $m $m $m $m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs(1) - (14) - - - - - - (77) (91)
Operating expenses
Disposals, wind-downs, acquisitions and related costs - (12) (8) (5) (10) - - - (15) (50)
Restructuring and other related costs(2) (9) (8) (19) (2) (6) - (1) (20) (76) (141)
1 Includes fair value losses on ADRs in Galicia received as part of
the sale consideration for HSBC Argentina.
2 Amounts relate to restructuring provisions recognised in 2025 as
well as reversals of restructuring provisions recognised during 2022.
Legal entity results - on a constant currency basis (continued)
Quarter ended 31 Mar 2024
HSBC UK Bank plc HSBC Bank plc The Hongkong and HSBC Bank Middle East Limited HSBC North America Holdings Inc. HSBC Bank Canada Grupo Other trading entities(1) Holding Total
Shanghai Financiero companies,
Banking HSBC, S.A. shared
Corporation de C.V. service
Limited centres and
intra-group
eliminations
$m $m $m $m $m $m $m $m $m $m
Revenue(2)
Reported 3,091 2,307 8,469 620 1,086 462 888 790 3,039 20,752
Currency translation (21) (35) (30) - - (27) (149) (131) - (393)
Constant currency 3,070 2,272 8,439 620 1,086 435 739 659 3,039 20,359
ECL
Reported (52) (66) (271) (55) 7 (40) (176) (68) 1 (720)
Currency translation - 1 (1) - - 3 30 14 (1) 46
Constant currency (52) (65) (272) (55) 7 (37) (146) (54) - (674)
Operating expenses
Reported (1,228) (1,554) (3,352) (282) (840) (236) (530) (477) 348 (8,151)
Currency translation 8 25 10 - - 14 89 63 (3) 206
Constant currency (1,220) (1,529) (3,342) (282) (840) (222) (441) (414) 345 (7,945)
Share of profit/(loss) in associates and joint ventures
Reported - 10 611 - - - 4 145 (1) 769
Currency translation - - (7) - - - (1) - - (8)
Constant currency - 10 604 - - - 3 145 (1) 761
Profit/(loss) before tax
Reported 1,811 697 5,457 283 253 186 186 390 3,387 12,650
Currency translation (13) (9) (28) - - (10) (31) (54) (4) (149)
Constant currency 1,798 688 5,429 283 253 176 155 336 3,383 12,501
Loans and advances to customers (net)
Reported 268,477 107,995 449,043 20,732 54,941 - 27,581 4,356 - 933,125
Currency translation 5,778 1,033 (911) (2) - - (5,164) (468) 1 267
Constant currency 274,255 109,028 448,132 20,730 54,941 - 22,417 3,888 1 933,392
Customer accounts
Reported 333,416 290,613 776,288 33,397 95,407 - 31,244 9,726 73 1,570,164
Currency translation 7,177 3,854 692 (3) - - (5,850) (926) (1) 4,943
Constant currency 340,593 294,467 776,980 33,394 95,407 - 25,394 8,800 72 1,575,107
1 Other 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 Group reported profit before tax of $359m and
constant currency profit before tax of $304m.
2 Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as revenue.
Notable items (continued)
Quarter ended 31 Mar 2024
HSBC UK Bank plc HSBC Bank plc The Hongkong and Shanghai Banking Corporation Limited HSBC Bank Middle East Limited HSBC North America Holdings Inc. HSBC Bank Canada Grupo Other trading entities Holding Total
Financiero companies,
HSBC, S.A. shared
de C.V. service
centres and
intra-group
eliminations
$m $m $m $m $m $m $m $m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs(1) - (16) - - - - - - 3,748 3,732
Operating expenses
Disposals, wind-downs, acquisitions and related costs - (5) - - (7) (36) - - (15) (63)
Restructuring and other related costs(2) 3 9 - - - - - - 1 13
1 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 losses. This was partly offset by a $1.1bn
impairment recognised in relation to the sale of our business in Argentina.
2 Amounts relate to reversals of restructuring provisions recognised
during 2022.
Legal entity results - on a constant currency basis (continued)
Quarter ended 31 Dec 2024
HSBC UK Bank plc HSBC Bank plc The Hongkong and HSBC Bank Middle East Limited HSBC North America Holdings Inc. HSBC Bank Canada Grupo Other trading entities(1) Holding Total
Shanghai Financiero companies,
Banking HSBC, S.A. shared
Corporation de C.V. service
Limited centres and
intra-group
eliminations
$m $m $m $m $m $m $m $m $m $m
Revenue(2)
Reported 3,263 2,388 8,324 622 1,228 - 829 742 (5,832) 11,564
Currency translation (58) (41) (52) (1) 1 - (13) (21) (16) (201)
Constant currency 3,205 2,347 8,272 621 1,229 - 816 721 (5,848) 11,363
ECL
Reported (170) (274) (541) (64) (29) - (265) (22) 3 (1,362)
Currency translation 3 5 2 - - - 4 1 - 15
Constant currency (167) (269) (539) (64) (29) - (261) (21) 3 (1,347)
Operating expenses
Reported (1,436) (1,909) (3,859) (311) (813) - (519) (501) 744 (8,604)
Currency translation 26 30 26 1 1 - 8 16 4 112
Constant currency (1,410) (1,879) (3,833) (310) (812) - (511) (485) 748 (8,492)
Share of profit/(loss) in associates and joint ventures
Reported 1 3 541 - - - 3 133 (2) 679
Currency translation (1) - (7) - - - - 1 1 (6)
Constant currency - 3 534 - - - 3 134 (1) 673
Profit/(loss) before tax
Reported 1,658 208 4,465 247 386 - 48 352 (5,087) 2,277
Currency translation (30) (6) (31) - 2 - (1) (3) (11) (80)
Constant currency 1,628 202 4,434 247 388 - 47 349 (5,098) 2,197
Loans and advances to customers (net)
Reported 272,973 103,464 449,940 20,440 55,786 - 23,439 4,617 (1) 930,658
Currency translation 7,921 3,509 328 3 - - 389 8 1 12,159
Constant currency 280,894 106,973 450,268 20,443 55,786 - 23,828 4,625 - 942,817
Customer accounts
Reported 340,233 297,785 845,284 34,808 99,278 - 27,525 9,999 43 1,654,955
Currency translation 9,873 9,512 534 7 - - 458 (101) (1) 20,282
Constant currency 350,106 307,297 845,818 34,815 99,278 - 27,983 9,898 42 1,675,237
1 Other 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 Group reported profit before tax of $336m and
constant currency profit before tax of $333m.
2 Net operating income before change in expected credit losses and
other credit impairment charges, also referred to as revenue.
Notable items (continued)
Quarter ended 31 Dec 2024
HSBC UK Bank plc HSBC Bank plc The Hongkong and Shanghai Banking Corporation Limited HSBC Bank Middle East Limited HSBC North America Holdings Inc. HSBC Bank Canada Grupo Other trading entities Holding Total
Financiero companies,
HSBC, S.A. shared
de C.V. service
centres and
intra-group
eliminations
$m $m $m $m $m $m $m $m $m $m
Revenue
Disposals, wind-downs, acquisitions and related costs(1) - (20) - - - - - (17) (4,949) (4,986)
Early redemption of legacy securities - - - - - - - - 46 46
Operating expenses
Disposals, wind-downs, acquisitions and related costs 5 (4) - - (8) - - (30) (13) (50)
Restructuring and other related costs(2) (2) 4 (5) (4) (4) - - (9) (36) (56)
1 Includes a $5.2bn loss on the recycling in foreign currency
translation reserve losses and other reserves arising on sale of our business
in Argentina.
2 Amounts relate to restructuring provisions recognised in 2024 and
reversals of restructuring provisions recognised during 2022.
Alternative performance measures
Use of alternative performance measures
Our reported results are prepared in accordance with IFRS Accounting Standards
as detailed in our financial statements starting on page 341 of the Annual
Report and Accounts 2024. We use a combination of reported and alternative
performance measures, including those derived from our reported results that
eliminate factors that distort period-on-period comparisons. These are
considered alternative performance measures (non-GAAP financial measures).
The following information details the adjustments made to the reported results
and the calculation of other alternative performance measures. All alternative
performance measures are reconciled to the closest reported performance
measure.
Alternative performance measure definitions
Alternative performance measure Definition
Reported revenue excluding notable items Reported revenue after excluding notable items reported under revenue(2)
Reported profit before tax excluding notable items Reported profit before tax after excluding notable items reported under
revenue less notable items reported under operating expenses(2)
Constant currency revenue excluding notable items(1) Reported revenue excluding notable items and the impact of foreign exchange
translation(2)
Constant currency profit before tax excluding notable items(1) Reported profit before tax excluding notable items and the impact of foreign
exchange translation(2)
Constant currency revenue excluding notable items and strategic Reported revenue excluding notable items, strategic transactions and the
transactions(1) impact of foreign exchange translation(3)
Constant currency profit before tax excluding notable items and strategic Reported profit before tax excluding notable items, strategic transactions and
transactions(1) the impact of foreign exchange translation(3)
Return on average ordinary shareholders' equity ('RoE') Profit attributable to the ordinary shareholders
Average ordinary shareholders' equity
Return on average tangible equity Profit attributable to the ordinary shareholders, excluding impairment
of goodwill and other intangible assets
Average ordinary shareholders' equity adjusted for goodwill and intangibles
Return on average tangible equity excluding notable items Profit attributable to the ordinary shareholders, excluding impairment of
goodwill
and other intangible assets and notable items(2)
Average ordinary shareholders' equity adjusted for goodwill
and intangibles and notable items(2)
Net asset value per ordinary share Total ordinary shareholders' equity(4)
Basic number of ordinary shares in issue after deducting own shares held
Tangible net asset value per ordinary share Tangible ordinary shareholders' equity(5)
Basic number of ordinary shares in issue after deducting own shares held
Expected credit losses and other credit impairment charges as a % of average Annualised constant currency ECL(6)
gross loans and advances to customers
Constant currency average gross loans and advances to customers(6)
Expected credit losses and other credit impairment charges as a % of average Annualised constant currency ECL(6)
gross loans and advances to customers, including held for sale
Constant currency average gross loans and advances to customers,
including held for sale(6)
Target basis operating expenses Reported operating expenses excluding notable items, foreign exchange
translation and other excluded items(2,7)
Basic earnings per share excluding material notable items and related impacts Profit attributable to ordinary shareholders excluding material notable
items and related impacts(8)
Weighted average number of ordinary shares outstanding,
excluding own shares held
1 Constant currency performance is computed by adjusting reported
results for the effects of foreign currency translation differences, which
distort period-on-period comparisons.
2 For details of notable items, see 'Supplementary financial
information' on page 22.
3 For details of strategic transactions, see 'Strategic transactions
supplementary analysis' on page 26.
4 Total ordinary shareholders' equity is total shareholders' equity
less non-cumulative preference shares and capital securities.
5 Tangible ordinary shareholders' equity is total ordinary
shareholders' equity excluding goodwill and other intangible assets (net of
deferred tax).
6 The constant currency numbers are derived by adjusting reported ECL
and average loans and advances to customers for the effects of foreign
currency translation differences.
7 Other excluded items includes the impact of re-translating
comparative period financial information at the latest rates of foreign
exchange in hyperinflationary economies, which we consider to be outside of
our control, and the impact of the sale of our business in Argentina and
banking business in Canada.
8 For details of material notable items and related impacts that are
included in the calculation of 'Profit attributable to ordinary shareholders
excluding material notable items and related impacts', see page 34.
Constant currency revenue and profit before tax excluding notable items and
strategic transactions
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Revenue
Reported 17,649 11,564 20,752
Notable items 91 4,940 (3,732)
Reported revenue excluding notable items 17,740 16,504 17,020
Currency translation(1) (201) (393)
Constant currency revenue excluding notable items 17,740 16,303 16,627
Constant currency impact of strategic transactions (distorting impact of - (131) (588)
operating results between periods)(2)
Constant currency revenue excluding notable items and strategic transactions 17,740 16,172 16,039
Profit before tax
Reported 9,484 2,277 12,650
Notable items 282 5,046 (3,682)
Reported profit before tax excluding notable items 9,766 7,323 8,968
Currency translation(1) (82) (152)
Constant currency profit before tax excluding notable items 9,766 7,241 8,816
Constant currency impact of strategic transactions (distorting impact of - (35) (201)
operating results between periods)(2)
Constant currency profit before tax excluding notable items and strategic 9,766 7,206 8,615
transactions
1 Currency translation on the reported balance excluding currency
translation on notable items.
2 For more details of strategic transactions, see 'Strategic
transactions supplementary analysis' on page 26.
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. The impacts of
strategic transactions considered 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. We consider these measures
to provide useful information to investors as they remove items that distort
period-on-period comparisons.
Return on average ordinary shareholders' equity, return on average tangible
equity and return on average tangible equity excluding notable items
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Profit after tax
Profit attributable to the ordinary shareholders of the parent company 6,932 197 10,183
Impairment of goodwill and other intangible assets (net of tax) - 4 110
Profit attributable to the ordinary shareholders, excluding goodwill and other 6,932 201 10,293
intangible assets impairment
Impact of notable items(1) 216 5,027 (3,800)
Profit attributable to the ordinary shareholders, excluding goodwill, other 7,148 5,228 6,493
intangible assets impairment and notable items
Equity
Average total shareholders' equity 187,892 188,864 188,258
Effect of average preference shares and other equity instruments (18,894) (19,070) (17,719)
Average ordinary shareholders' equity 168,998 169,794 170,539
Effect of goodwill and other intangibles (net of deferred tax) (11,650) (11,706) (11,680)
Average tangible equity 157,348 158,088 158,859
Average impact of notable items 39 20 135
Average tangible equity excluding notable items 157,387 158,108 158,994
Ratio % % %
Return on average ordinary shareholders' equity (annualised) 16.6 0.5 24.0
Return on average tangible equity (annualised) 17.9 0.5 26.1
Return on average tangible equity excluding notable items (annualised) 18.4 13.2 16.4
1 For details of notable items please refer to 'Supplementary
financial information' on page 22.
The calculation for RoTE excluding notable items adjusts the 'profit
attributable to 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.
Return on average tangible equity by business segment
Quarter ended 31 Mar 2025
Hong Kong UK CIB IWPB(1) Corporate Total
Centre(1)
$m $m $m $m $m $m
Profit before tax 2,543 1,551 3,520 1,188 682 9,484
Tax expense (480) (442) (760) (236) 4 (1,914)
Profit after tax 2,063 1,109 2,760 952 686 7,570
Less attributable to: preference shareholders, other equity holders, (275) (52) (177) (64) (70) (638)
non-controlling interests
Profit attributable to ordinary shareholders of the parent company 1,788 1,057 2,583 888 616 6,932
Other adjustments 67 59 (53) (12) (61) -
Profit attributable to ordinary shareholders 1,855 1,116 2,530 876 555 6,932
Average tangible shareholders' equity 20,162 19,887 54,829 18,511 43,959 157,348
RoTE (%) (annualised) 37.3 22.8 18.7 19.2 5.1 17.9
Quarter ended 31 Mar 2024
Profit before tax 2,302 1,667 3,304 1,213 4,164 12,650
Tax expense (1,813)
(479) (664) (251) (71)
(348)
Profit after tax 1,954 1,188 2,640 962 4,093 10,837
Less attributable to: preference shareholders, other equity holders,
non-controlling interests (246) (50) (256) (59) (44) (655)
Profit attributable to ordinary shareholders of the parent company 1,708 1,138 2,384 903 4,049 10,183
Other adjustments 63 71 200 110
(192) (32)
Profit attributable to ordinary shareholders 1,771 1,209 2,192 871 4,249 10,293
Average tangible shareholders' equity 18,712 18,411 55,265 19,384 47,087 158,859
RoTE (%) (annualised) 38.0 26.4 16.0 18.1 36.2 26.1
1 With effect from 1 January 2024, following the sale of our retail
banking operations in France, we have prospectively reclassified the portfolio
of retained loans, profit participation interest and licence agreement of the
CCF brand from IWPB to Corporate Centre.
Net asset value and tangible net asset value per ordinary share
At
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Total shareholders' equity 190,810 184,973 191,186
Preference shares and other equity instruments (18,719) (19,070) (17,719)
Total ordinary shareholders' equity 172,091 165,903 173,467
Goodwill and intangible assets (net of deferred tax) (11,693) (11,608) (11,459)
Tangible ordinary shareholders' equity 160,398 154,295 162,008
Basic number of $0.50 ordinary shares outstanding, after deducting own shares 17,668 17,918 18,687
held (millions)
Value per share $ $ $
Net asset value per ordinary share 9.74 9.26 9.28
Tangible net asset value per ordinary share 9.08 8.61 8.67
ECL as a % of average gross loans and advances to customers, and ECL as a % of
average gross loans and advances to customers, including held for sale
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
ECL (876) (1,362) (720)
Currency translation 15 46
Constant currency (876) (1,347) (674)
Average gross loans and advances to customers 947,588 959,993 946,835
Currency translation 6,130 (6,645) (4,974)
Constant currency 953,718 953,348 941,861
Average gross loans and advances to customers, including held for sale 948,700 961,851 984,580
Currency translation 6,145 (6,733) (7,635)
Constant currency 954,845 955,118 976,945
Ratios % % %
ECL (annualised) as a % of average gross loans and advances to customers 0.37 0.56 0.29
ECL (annualised) as a % of average gross loans and advances to customers, 0.37 0.56 0.28
including held for sale
Target basis operating expenses
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Reported operating expenses 8,102 8,604 8,151
Notable items (191) (106) (50)
- disposals, acquisitions and related costs (50) (50) (63)
- restructuring and other related costs(1) (141) (56) 13
Currency translation(2) (110) (203)
Excluding the constant currency impact of the sale of our business in - (76) (264)
Argentina and banking business in Canada(3)
Excluding the impact of retranslating prior period costs of hyperinflationary - 6 10
economies at constant currency foreign exchange rate
Target basis operating expenses 7,911 8,318 7,644
1 Amounts relate to restructuring provisions recognised in 2024 and
2025 and reversals of restructuring provisions recognised during 2022.
2 Currency translation on reported operating expenses, excluding
currency translation on notable items.
3 This 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
which relate to these transactions.
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.
Basic earnings per share excluding material notable items and related impacts
Quarter ended
31 Mar 2025 31 Dec 2024 31 Mar 2024
$m $m $m
Profit attributable to shareholders of company 7,324 351 10,584
Coupon payable on capital securities classified as equity (392) (154) (401)
Profit attributable to ordinary shareholders of company 6,932 197 10,183
Gain on acquisition of SVB UK - (3) -
Impact of the sale of our retail banking operations in France (net of tax) - (1) (52)
Impact of the sale of our banking business in Canada(1) (2) (10) (4,942)
Impact of the sale of our business in Argentina 70 4,999 1,137
Profit attributable to ordinary shareholders of company excluding material 7,000 5,182 6,326
notable items and related impacts
Number of shares
Weighted average basic number of ordinary shares after deducting own shares 17,769 18,042 18,823
held (millions)
Basic earnings per share ($) 0.39 0.01 0.54
Basic earnings per share excluding material notable items and related impacts 0.39 0.29 0.34
($)
1 Represents gain on sale of our banking business in Canada recognised
on completion and related impacts, 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.
u See page 6 for further details on material notable items.
Material notable items for the 'basic earnings per share excluding material
notable items and related impacts' measure in 2025 and 2024 comprise the
impacts of the sales of our banking business in Canada and our retail banking
operations in France and the sale of our business in Argentina. We also
excluded HSBC Bank Canada's financial results from the 30 June 2022 net asset
reference date until completion, as the gain on sale was recognised through a
combination of the consolidation of HSBC Bank Canada's results into the
Group's results since this date, and the remaining gain on sale was recognised
at completion, inclusive of the recycling of related reserves and fair value
gains on related hedges. Following the completion of the sale of our banking
business in Canada, the Board approved a special dividend of $0.21 per share,
which was paid in June 2024 alongside the first interim dividend.
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.
Risk
Managing risk
HSBC's operations are subject to changes in the economy, financial conditions
and geopolitical developments, which could have a material impact on the
Group's operations and financial risks. These factors are a significant source
of uncertainty that we continuously monitor, review and aim to proactively
manage.
Risks for the global economy have been heightened by new trade policies
announced by the US and potential measures that may be adopted by several
countries globally, including in the markets in which the Group operates. This
uncertainty poses downside risks to economic growth and impacts economic
forecasts, financial markets and business and consumer sentiment. A further
escalation of tariffs and trade tensions could lead to lower trade volumes,
investment, consumer spending and, ultimately, weaker global GDP growth.
Supply chains could also come under renewed pressure from a fragmented trade
landscape, which could cause inflation to rise again.
A weaker economic environment and higher inflation creates challenges for
central banks, which are likely to be more cautious about the timing of
interest rate cuts if inflation persists above target rates. If interest rates
remain high, loan demand across key consumer and business segments may be
impacted and credit quality could deteriorate, weighing on real estate prices
and business investment. Policymakers in mainland China have scope to expand
policy support, through a mix of higher government spending and lower interest
rates, to offset the potential impact from weaker trade growth. Separately,
European governments are also looking to raise defence spending, which could
improve medium-term growth prospects. Tariffs, disruption to supply chains and
lower trade volumes could negatively impact fee income and demand for
financing, although trade redirection and the reconfiguration of supply chains
may also present new opportunities.
Public spending as a proportion of GDP is likely to remain high for most key
economies. Against a backdrop of high global interest rates, a high level of
public debt issuance and US dollar volatility, borrowing costs for certain
countries could increase further. This could adversely impact the fiscal
capacity and debt sustainability of highly-indebted sovereign issuers.
Geopolitical risks remain elevated. Heightened strategic competition between
the US and China is impacting global supply chains, which may in turn impact
the Group's operations. Continued hostilities in the Middle East could broaden
risks for the shipping industry and for end-industry customers through higher
freight costs. During the first quarter of 2025, several countries took
sanctions and export controls-related actions that could result in significant
adverse commercial, operational or reputational consequences for HSBC and its
customers if not considered and managed appropriately. Sanctions on Russia
continue as a result of the Russia-Ukraine war although the US focus has
shifted to negotiating an end to the conflict. The differing stance from that
adopted by the UK and the EU could lead to disparities in government
approaches to lifting sanctions against Russia, and result in operational,
compliance and reputational challenges for the Group. The US has also
prioritised targeting illicit fentanyl and other synthetic opioid trafficking
into the US, designating several drug cartels under US counter-terrorism
sanctions in the first quarter of 2025, which creates additional civil
litigation and criminal prosecution risk, along with secondary sanctions risks
for non-US HSBC entities.
The performance of the Hong Kong commercial real estate market is
differentiated across asset segments, with commercial property continuing to
suffer from weak demand, while the residential property market has seen some
stabilisation as transaction levels have increased following government policy
relaxation. Price pressure nevertheless continues as developers accelerate
de-stocking and valuation agents recalibrate their assessments in view of
recent market benchmarks. Resultant changes in property valuations and
loan-to-value ratios are monitored closely for appropriate portfolio actions.
Broader economic sentiment in Hong Kong remains cautious, with interest rates
subject to increased uncertainty given possible inflationary pressures from
ongoing trade tensions.
Commercial real estate market conditions in mainland China remain challenging,
although some positive sales momentum has been observed in tier one cities. A
full recovery is likely to be protracted and dependent on a sustained
improvement in underlying sentiment, as well as further government support. We
continue to closely monitor market conditions and take steps to proactively
manage our commercial real estate portfolios.
In the first quarter 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.
At 31 March 2025 our CET1 ratio decreased to 14.7% from 14.9% at 31 December
2024, and our liquidity coverage ratio ('LCR') was 139%, up from 138% at 31
December 2024.
u For further details of our Central and other economic scenarios, see
'Measurement uncertainty and sensitivity analysis of ECL estimates' on page
40.
u For further details of management adjustments to ECL, see page 44.
u For further details on our CET1 ratio, see 'Capital risk' on page 47.
Credit risk
Summary of credit risk
At 31 March 2025, gross loans and advances to customers of $955bn were $14.4bn
higher on a reported basis compared with 31 December 2024. This included total
favourable effects of foreign currency translation differences of $12.2bn.
On a constant currency basis, the increase of $2.2bn was driven by higher
balances in CIB (up $7.2bn), IWPB (up $1.9bn) and in our UK business (up
$1.9bn). These were partly offset by decreases in our Hong Kong business (down
$1.6bn) and Corporate Centre (down $7.2bn).
The increase in CIB was driven by higher lending in our legal entities in Asia
(up $3.7bn), HSBC Bank plc (up $1.5bn), the Middle East (up $0.8bn) and the US
(up $0.6bn).
The increase in IWPB was primarily driven by growth in our main legal entity
in Hong Kong (up $1.4bn).
In our UK business segment, the increase was primarily driven by mortgage
growth.
The decrease in our Hong Kong business segment was primarily driven by lower
exposures across different products, including mortgages and cards.
The decrease in Corporate Centre was driven by the reclassification of a
retained portfolio of home and other loans following the disposal of our
retail banking operations in France to debt instruments measured at fair value
through other comprehensive income ('FVOCI'), as a result of a change in the
IFRS 9 measurement category of the portfolio.
At 31 March 2025, the allowance for ECL of $10.7bn comprised $10.2bn 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 FVOCI.
On a constant currency basis, the allowance for ECL in relation to loans and
advances to customers increased by $0.3bn. This was attributable to:
- a $0.1bn increase in stages 1 and 2; and
- a $0.2bn increase in stage 3.
The ECL charge for the first three months of 2025 was $0.9bn (1Q24: $0.7bn),
inclusive of recoveries. The ECL charge included the impact of a deterioration
in the forward economic outlook. It comprised: $0.3bn in respect of the Hong
Kong business segment; $0.2bn in respect of the UK business segment; $0.2bn in
respect of CIB; and $0.2bn in respect of IWPB.
At 31 March 2025, the shift in weightings to reflect the uncertainty of the
forward economic outlook resulted in an ECL charge of $150m.
For further details on ECL charges in each of our business segments, see pages
16 and 38.
ECL charges in the mainland China commercial real estate sector were
immaterial in 1Q25. ECL charges in the Hong Kong commercial real estate sector
excluding exposure to mainland China borrowers of $0.1bn in 1Q25 were due to
ongoing pressures in the sector.
Summary of financial instruments to which the impairment requirements in IFRS
9 are applied - by business segment at 31 March 2025
Gross carrying/nominal amount Allowance for ECL(1)
Hong Kong UK CIB IWPB Corporate Total Hong Kong UK CIB IWPB Corporate Total
Centre Centre
$m $m $m $m $m $m $m $m $m $m $m $m
Loans and advances to customers at amortised cost 236,455 278,878 298,341 140,910 218 954,802 (3,401) (1,913) (3,244) (1,494) (42) (10,094)
Loans and advances to banks at amortised cost 10,457 6,400 64,469 17,927 1,601 100,854 (1) (2) (5) (2) (1) (11)
Other financial assets measured at amortised cost 42,198 102,885 594,599 60,559 71,510 871,751 (25) (18) (47) (24) - (114)
- cash and balances at central banks 4,922 60,420 168,936 19,603 779 254,660 - - - - - -
- Hong Kong Government certificates of indebtedness - - - - 42,293 42,293 - - - - - -
- reverse repurchase agreements - non-trading 2,061 15,290 254,070 5,415 1,380 278,216 - - - - - -
- financial investments 31,227 25,009 59,791 26,305 20,741 163,073 (1) (1) (3) (3) - (8)
- assets held for sale(2) - - 720 2,695 114 3,529 - - (4) (7) - (11)
- other assets(3) 3,988 2,166 111,082 6,541 6,203 129,980 (24) (17) (40) (14) - (95)
Total gross carrying amount on-balance sheet 289,110 388,163 957,409 219,396 73,329 (3,427) (1,933) (3,296) (1,520) (43) (10,219)
1,927,407
Loan and other credit-related commitments 109,867 96,856 344,279 112,103 248 663,353 (36) (113) (206) (10) - (365)
Financial guarantees 1,511 942 13,561 1,678 - 17,692 (3) (3) (27) (1) - (34)
Total nominal amount off-balance sheet(4) 111,378 97,798 357,840 113,781 248 681,045 (39) (116) (233) (11) - (399)
At 31 Mar 2025 400,488 485,961 333,177 73,577 (3,466) (2,049) (3,529) (1,531) (43) (10,618)
1,315,249 2,608,452
Fair value Memorandum allowance for ECL(5)
Hong Kong UK CIB IWPB Corporate Total Hong Kong UK CIB IWPB Corporate Total
Centre Centre
$m $m $m $m $m $m $m $m $m $m $m $m
Debt instruments measured at fair value through other comprehensive income 131,789 25,877 145,790 55,418 7,555 366,429 (1) (1) (16) (12) (26) (56)
('FVOCI')
1 The 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 31 March 2025, the gross carrying amount comprised $1.5bn of loans
and advances to customers and banks and $2.0bn of other financial assets at
amortised cost including the sales of our private banking business in Germany
($2.0bn) and our business in South Africa ($0.8bn). The corresponding
allowance for ECL comprised $11m of loans and advances to customers and banks
and $0.2m of other financial assets at amortised cost.
3 Includes 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 14 comprises both financial and
non-financial assets, including cash collateral and settlement accounts.
4 Represents the maximum amount at risk should the contracts be fully
drawn upon and clients default.
5 Debt 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.
Summary of financial instruments to which the impairment requirements in IFRS
9 are applied - by business segment at 31 December 2024
Gross carrying/nominal amount Allowance for ECL(1)
Hong Kong UK CIB IWPB Corporate Total Hong Kong UK CIB IWPB Corporate Total
Centre Centre
$m $m $m $m $m $m $m $m $m $m $m $m
Loans and advances to customers at amortised cost 238,416 269,141 287,842 137,789 7,185 940,373 (3,208) (1,848) (3,141) (1,464) (54) (9,715)
Loans and advances to banks at amortised cost 13,034 7,505 63,524 15,713 2,276 102,052 (1) (2) (7) (1) (2) (13)
Other financial assets measured at amortised cost 52,869 100,322 553,664 58,713 63,012 828,580 (25) (9) (39) (19) - (92)
- cash and balances at central banks 5,565 63,981 177,095 20,260 773 267,674 - - - - - -
- Hong Kong Government certificates of indebtedness - - - - 42,293 42,293 - - - - - -
- reverse repurchase agreements - non-trading 2,896 13,188 229,672 5,844 949 252,549 - - - - - -
- financial investments 40,345 20,072 56,537 25,059 11,969 153,982 (1) (1) (4) (3) - (9)
- assets held for sale(2) - 5 670 2,595 3 3,273 - - (4) - - (4)
- other assets(3) 4,063 3,076 89,690 4,955 7,025 108,809 (24) (8) (31) (16) - (79)
Total gross carrying amount on-balance sheet 304,319 376,968 905,030 212,215 72,473 (3,234) (1,859) (3,187) (1,484) (56) (9,820)
1,871,005
Loan and other credit-related commitments 109,369 90,848 307,197 111,762 191 619,367 (29) (116) (187) (16) - (348)
Financial guarantees 1,171 939 13,186 1,702 - 16,998 (2) (3) (24) - - (29)
Total nominal amount off-balance sheet(4) 110,540 91,787 320,383 113,464 191 636,365 (31) (119) (211) (16) - (377)
At 31 Dec 2024 414,859 468,755 325,679 72,664 (3,265) (1,978) (3,398) (1,500) (56) (10,197)
1,225,413 2,507,370
Fair value Memorandum allowance for ECL(5)
Hong Kong UK CIB IWPB Corporate Total Hong Kong UK CIB IWPB Corporate Total
Centre Centre
$m $m $m $m $m $m $m $m $m $m $m $m
Debt instruments measured at fair value through other 128,568 26,405 137,538 51,516 2,097 346,124 (1) (1) (18) (14) (20) (54)
comprehensive income
('FVOCI')
1 The 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 31 December 2024, the gross carrying amount comprised $1.1bn of
loans and advances to customers and banks and $2.1bn of other financial assets
at amortised cost including the sales of our private banking business in
Germany ($2.2bn) and our business in South Africa ($0.4bn). The corresponding
allowance for ECL comprised $4m of loans and advances to customers and banks
and $0.3m of other financial assets at amortised cost.
3 Includes 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 14 comprises both financial and
non-financial assets, including cash collateral and settlement accounts.
4 Represents the maximum amount at risk should the contracts be fully
drawn upon and clients default.
5 Debt 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
Hong Kong UK CIB IWPB Corporate Total
Centre
$m $m $m $m $m $m
Quarter ended 31 Mar 2025 (320) (169) (169) (227) 9 (876)
Quarter ended 31 Dec 2024 (1,362)
(356) (170) (524) (310) (2)
Quarter ended 31 Mar 2024
(233) (55) (179) (247) (6) (720)
Summary of credit risk (excluding debt instruments measured at FVOCI) by stage
distribution and ECL coverage at 31 March 2025
Gross carrying/nominal amount(1) Allowance for ECL ECL coverage %
Stage 1 Stage 2 Stage 3 POCI(2) Total Stage 1 Stage 2 Stage 3 POCI(2) Total Stage 1 Stage 2 Stage 3 POCI(2) Total
$m $m $m $m $m $m $m $m $m $m % % % % %
Loans and advances to customers at amortised 832,209 99,081 23,211 301 954,802 (1,086) (2,728) (6,215) (65) (10,094) 0.1 2.8 26.8 21.6 1.1
cost
Loans and advances to banks at amortised cost 100,716 135 3 - 100,854 (7) (1) (3) - (11) - 0.7 100.0 - -
Other financial assets measured at amortised 869,907 1,688 152 4 871,751 (72) (14) (28) - (114) - 0.8 18.4 - -
cost
Loan and other credit-related commit-ments 640,732 21,782 834 5 663,353 (142) (133) (88) (2) (365) - 0.6 10.6 40.0 0.1
Financial guarantees 15,639 1,801 252 - 17,692 (6) (10) (18) - (34) - 0.6 7.1 - 0.2
At 31 Mar 2025 124,487 24,452 310 (1,313) (2,886) (6,352) (67) (10,618) 0.1 2.3 26.0 21.6 0.4
2,459,203 2,608,452
1 Represents the maximum amount at risk should the contracts be fully
drawn upon and clients default.
2 Purchased or originated credit-impaired ('POCI').
Summary of credit risk (excluding debt instruments measured at FVOCI) by stage
distribution and ECL coverage at 31 December 2024
Gross carrying/nominal amount(1) Allowance for ECL ECL coverage %
Stage 1 Stage 2 Stage 3 POCI(2) Total Stage 1 Stage 2 Stage 3 POCI(2) Total Stage 1 Stage 2 Stage 3 POCI(2) Total
$m $m $m $m $m $m $m $m $m $m % % % % %
Loans and advances to customers at amortised 824,420 93,248 22,615 90 940,373 (1,078) (2,546) (6,040) (51) (9,715) 0.1 2.7 26.7 56.7 1.0
cost
Loans and advances to banks at amortised cost 101,852 198 2 - 102,052 (9) (2) (2) - (13) - 1.0 100.0 - -
Other financial assets measured at amortised 826,621 1,806 153 - 828,580 (64) (5) (23) - (92) - 0.3 15.0 - -
cost
Loan and other credit-related commit-ments 597,231 21,175 958 3 619,367 (137) (121) (90) - (348) - 0.6 9.4 - 0.1
Financial guarantees 15,353 1,397 248 - 16,998 (8) (5) (16) - (29) 0.1 0.4 6.5 - 0.2
At 31 Dec 2024 117,824 23,976 93 (1,296) (2,679) (6,171) (51) (10,197) 0.1 2.3 25.7 54.8 0.4
2,365,477 2,507,370
1 Represents the maximum amount at risk should the contracts be fully
drawn upon and clients default.
2 Purchased or originated credit-impaired ('POCI').
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.
The Central scenario is constructed to reflect current macroeconomic
expectations. Outer scenarios incorporate the crystallisation of economic and
geopolitical risks.
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 31 March 2025, four economic scenarios were used to capture the latest
economic expectations and to articulate management's view of the range of
risks and potential outcomes. In each quarter, scenarios are updated with the
latest economic forecasts and distributional estimates. 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. The fourth scenario, the Downside 2, represents management's view of
severe downside risks.
For the first quarter of 2025, scenarios were constructed using our standard
methodology and an adjustment applied to the Central scenario, consistent with
the approach taken in the fourth quarter of 2024. Outer scenarios were
adjusted in parallel. The adjustment updated forecasts with the latest changes
to US tariff policy at that time and incorporated additional assumptions
around future tariff rates and policies. Consensus forecasts were assessed to
lag these developments. To quantify the impact, the adjustment reduced GDP
growth in the most negatively impacted markets by an average of 40bps in the
first year of the Central scenario, and by another 20bps in the second year of
the forecast.
As in the fourth quarter of 2024, the adjustment was based on a modelled
update to the Central scenario and incorporated a detailed narrative of US
trade policy proposals, including specific tariff rates. The results were then
layered onto the scenarios, resulting in changes to most variables.
Scenarios produced to calculate ECL are aligned to HSBC's top and emerging
risks.
Description of economic scenarios
The Central scenario reflects the expectation that higher tariffs applied to
the US's trading partners, and reciprocal tariffs announced in turn, will
reduce global trade activity and weigh on GDP growth as a consequence.
Mainland China, Hong Kong and Mexico are expected to experience the greatest
negative direct effects in terms of economic impact, given their deeper trade
and financial interlinkages with the US economy. Indirect consequences from
tariffs are forecast to reduce growth elsewhere through lower confidence and
investment. Alongside the implementation of higher tariffs, economic growth in
the US and UK continues to face headwinds from high interest rates and higher
price levels. Hong Kong is also suffering from the effects of high interest
rates and lower tourist spending, which has weakened domestic consumption. In
mainland China, authorities are increasing fiscal support to boost economic
activity and ensure that, despite trade headwinds, growth remains close to the
official target. In Europe, where manufacturing has been suffering a long
period of contraction, a trade war is expected to further weaken growth, and a
rise in fiscal spending, which is still uncertain in breadth and scope, may
only provide a partial offset.
Given the weaker expected growth outlook, unemployment is also forecast to
edge higher in many of our key markets in 2025. The exceptions are Hong Kong
and mainland China, where government policies to support employment are
expected to ensure unemployment remains stable. Inflation forecasts have risen
in several of our key markets, particularly for 2025, with higher tariffs
expected to exert renewed upward pressure on inflation, such that it is now
forecast to remain above central bank targets in 2025-26 in both the UK and
US. Interest rate forecasts for both markets imply that central banks will
look through temporary price effects and engage in a moderate reduction in
interest rates over the remainder of 2025. In Hong Kong, inflation is forecast
to remain anchored to its long-term average throughout the forecast horizon.
Lower inflation in mainland China has been driven by weak domestic demand,
particularly consumption, and is forecast to remain low as domestic supply
increases due to tariff constraints on trade. Consequently, in the Central
scenario forecast, it is expected that there is greater scope for policymakers
in mainland China to lower policy rates, given the subdued demand backdrop and
low inflation environment.
In mainland China and Hong Kong, real estate prices have continued to fall,
reflecting high levels of inventory and weak buyer confidence, despite the
delivery of supportive policy measures. Forecasts for both Hong Kong and
mainland China anticipate that prices will decline throughout 2025 before
recovering only gradually from 2026 onwards. House price growth forecasts in
the UK and US envisage continued steady growth. In the UK, a moderate fall in
rates is expected to improve affordability, while in the US, low housing
supply and low unemployment have acted to support price growth.
Risks to the Central scenario outlook are captured in the outer scenarios. The
Upside and Downside scenarios are constructed to reflect the economic
consequences from the crystallisation of a number of key economic and
financial risks. Sources of forecast uncertainty include tariff policy and the
rates at which tariffs are levied, geopolitical tensions, inflation and the
outlook for monetary policy.
The Downside scenarios explore the possibility that tariff actions escalate,
leading to lower GDP growth but higher inflation and interest rates than is
forecast in the Central scenario. As the trade policy environment remains
volatile and complex, risks include broader and more severe global retaliatory
actions, beyond tariffs. Escalation of geopolitical tensions remains a risk
amid ongoing conflicts in the Middle East and between Russia and Ukraine,
alongside heightened tensions between the US and China over a range of
strategic issues. Further escalation of these tensions could lead to more
adverse outcomes for global trade growth and supply chains, leading to greater
trade frictions, higher costs and financial market instability.
The four global scenarios used for calculating ECL at 31 March 2025 were:
- The consensus Central scenario: This scenario features a slowdown in
global growth in the near term, due to the implementation of higher tariffs as
well as underlying structural weakness in some economies, before a gradual
pick-up over the remainder of the forecast horizon. Growth rates are projected
to remain below the average growth rate over the five-year period prior to the
onset of the pandemic. Unemployment is forecast to rise gradually amid weaker
economic activity, but is set to remain low by historic standards. Inflation
is expected to increase temporarily in several of our main markets as a result
of tariffs. The main exceptions are Hong Kong and mainland China, where
inflation is expected to remain subdued, despite higher tariffs, due to weak
domestic demand. Interest rates are forecast to remain at a higher level than
in recent years.
- The consensus Upside scenario: This scenario incorporates a
de-escalation in tariff actions, deregulation, and a reduction of supply
constraints. It is also consistent with the reduction in geopolitical
tensions, such as the achievement of durable settlements of regional
conflicts. In this scenario growth accelerates, inflation falls at a faster
rate than in the Central scenario and unemployment declines. This would enable
central banks to lower interest rates more quickly than in the Central
scenario. Asset prices, including housing, would rise more quickly than in the
Central scenario.
- The consensus Downside scenario: This scenario features weaker
economic activity compared with the Central scenario, driven by higher tariffs
than assumed under the Central scenario. It causes a supply shock that drives
inflation and interest rates above the Central scenario forecast. In this
scenario, GDP growth slows, unemployment rises, financial conditions tighten
and equity markets and house prices fall.
- The Downside 2 scenario: This scenario reflects management's view of
the tail end of the economic distribution. It incorporates the simultaneous
crystallisation of a number of risks that leads to a deep global recession.
The narrative features an escalation in tariff actions globally and further
deterioration of geopolitical relations that lead to significant supply chain
degradation. Inflation and interest rates are assumed to rise initially.
Unemployment also increases rapidly, asset prices fall and defaults rise
significantly. As recession takes hold, commodity prices fall back and
inflation falls.
Both the consensus Downside and the Downside 2 scenarios are global in scope,
and while they differ in severity, they assume that the key risks to HSBC,
listed above, crystallise simultaneously.
The following tables describe key macroeconomic variables in the consensus
Central scenario, consensus Upside scenario, consensus Downside scenario and
Downside 2 scenario.
Consensus Central scenario 2Q25-1Q30 (as at 1Q25)
UK US Hong Kong Mainland China France UAE Mexico
GDP (annual average growth rate, %)
2025 1.1 1.8 1.5 4.5 0.7 4.7 0.2
2026 1.3 2.0 1.6 4.1 1.2 4.3 1.6
2027 1.6 2.4 1.7 3.6 1.3 3.8 2.0
2028 1.6 1.9 2.0 3.6 1.3 3.5 2.0
2029 1.5 1.8 1.5 4.1 1.3 3.3 2.1
5-year average(1) 1.4 2.0 1.7 4.0 1.2 3.8 1.7
Unemployment rate (%)
2025 4.8 4.3 3.0 5.1 7.6 1.4 3.5
2026 4.8 4.5 2.8 5.2 7.7 1.6 3.8
2027 4.7 4.3 2.9 5.2 7.4 1.9 3.4
2028 4.6 4.3 2.8 5.2 7.2 2.1 3.4
2029 4.4 4.3 2.6 5.0 7.0 2.2 3.4
5-year average(1) 4.6 4.3 2.8 5.1 7.3 1.9 3.5
House prices (annual average growth rate, %)
2025 2.9 4.5 (5.3) (5.2) 1.6 9.7 6.6
2026 2.3 3.4 0.8 1.0 3.9 5.2 4.2
2027 2.7 3.4 9.4 1.6 4.3 3.4 4.4
2028 3.2 2.6 10.7 2.5 3.7 2.1 4.4
2029 2.7 2.1 8.5 2.4 3.2 1.7 4.0
5-year average(1) 2.7 3.1 5.4 0.9 3.5 3.9 4.5
Inflation (annual average growth rate, %)
2025 3.2 3.4 2.1 0.7 1.4 1.6 3.6
2026 2.5 2.6 1.9 1.0 1.6 2.0 3.6
2027 2.2 2.1 2.2 1.3 1.9 2.0 3.4
2028 2.1 2.3 2.2 1.5 2.1 2.0 3.4
2029 2.0 2.3 2.1 1.6 2.1 1.9 3.2
5-year average(1) 2.4 2.5 2.1 1.3 1.8 1.9 3.4
Central bank policy rate (annual average, %)(2)
2025 4.2 4.1 4.5 2.9 2.2 4.2 8.8
2026 3.9 3.7 4.1 2.7 2.0 3.8 8.1
2027 3.9 3.7 4.1 2.8 2.1 3.7 8.2
2028 3.9 3.7 4.1 2.8 2.2 3.8 8.5
2029 3.9 3.8 4.2 2.8 2.3 3.8 8.6
5-year average(1) 3.9 3.8 4.2 2.8 2.2 3.8 8.4
1 The five-year average is calculated over a projected period of 20
quarters from 2Q25 to 1Q30.
2 For mainland China, rate shown is the Loan Prime Rate.
Consensus Central scenario 2025-2029 (as at 4Q24)
UK US Hong Kong Mainland China France UAE Mexico
GDP (annual average growth rate, %)
2025 1.2 2.0 1.7 4.0 0.9 4.4 0.9
2026 1.3 1.6 1.8 3.7 0.9 4.2 1.2
2027 1.8 1.6 3.5 4.3 1.4 3.9 1.7
2028 1.6 1.8 3.1 3.9 1.5 3.6 1.9
2029 1.6 2.0 2.7 3.7 1.4 3.6 2.0
5-year average(1) 1.5 1.8 2.6 3.9 1.2 3.9 1.5
Unemployment rate (%)
2025 4.9 4.4 3.3 5.2 7.5 2.7 3.5
2026 4.7 4.3 3.7 5.4 7.3 2.6 3.5
2027 4.5 4.3 3.3 5.2 7.2 2.6 3.5
2028 4.3 4.2 3.0 5.0 7.0 2.5 3.5
2029 4.3 4.1 2.9 5.0 7.0 2.5 3.5
5-year average(1) 4.5 4.2 3.2 5.2 7.2 2.6 3.5
House prices (annual average growth rate, %)
2025 1.4 4.4 (0.5) (5.9) 2.1 9.3 7.6
2026 3.8 3.2 2.4 (0.7) 4.4 5.1 4.5
2027 4.6 2.4 3.0 3.2 4.4 3.6 4.2
2028 3.5 2.5 2.7 4.1 3.8 1.8 4.0
2029 2.7 2.6 2.7 2.9 3.1 1.3 4.0
5-year average(1) 3.2 3.0 2.1 0.7 3.6 4.2 4.9
Inflation (annual average growth rate, %)
2025 2.4 2.4 1.4 0.3 1.2 2.1 5.0
2026 2.1 2.8 1.9 1.0 1.6 1.9 3.9
2027 2.1 2.5 2.2 1.5 2.0 1.8 3.4
2028 2.0 2.2 2.2 1.7 2.3 1.9 3.4
2029 2.0 2.1 2.3 1.6 2.2 1.8 3.4
5-year average(1) 2.1 2.4 2.0 1.2 1.9 1.9 3.8
Central bank policy rate (annual average, %)(2)
2025 4.2 4.1 4.5 2.9 2.1 4.1 9.4
2026 3.9 3.7 4.1 2.9 1.8 3.8 8.8
2027 3.8 3.7 4.0 3.0 2.0 3.7 8.8
2028 3.7 3.6 4.0 3.2 2.0 3.6 8.9
2029 3.7 3.6 4.0 3.3 2.1 3.6 8.9
5-year average(1) 3.9 3.7 4.1 3.1 2.0 3.8 8.9
1 The five-year average is calculated over a projected period of 20
quarters from 1Q25 to 4Q29.
2 For mainland China, rate shown is the Loan Prime Rate.
Consensus Upside scenario 2Q25-1Q30 (as at 1Q25)
UK US Hong Kong Mainland China France UAE Mexico
GDP level 11.3 (1Q30) 14.7 (1Q30) 15.7 (1Q30) 28.0 (1Q30) 8.9 (1Q30) 28.5 (1Q30) 15.5 (1Q30)
(%, start-to-peak)(1)
Unemployment rate 3.5 (1Q27) 3.7 (4Q25) 2.5 (1Q27) 4.7 (1Q27) 6.7 (1Q27) 1.2 (3Q25) 3.2 (2Q25)
(%, min)(2)
House price index 20.2 (1Q30) 24.0 (1Q30) 45.2 (1Q30) 10.6 (1Q30) 22.2 (1Q30) 25.6 (1Q30) 29.4 (1Q30)
(%, start-to-peak)(1)
Inflation rate 1.4 (2Q26) 2.0 (3Q26) 0.1 (1Q26) 0.1 (3Q25) 0.3 (1Q26) 0.1 (4Q25) 2.3 (2Q26)
(YoY % change, min)(3)
Central bank policy rate 3.5 (1Q26) 3.6 (1Q26) 4.0 (1Q26) 2.6 (2Q26) 1.5 (4Q25) 3.7 (1Q26) 6.8 (4Q25)
(%, min)(2)
1 Cumulative change to the highest level of the series during the
20-quarter projection.
2 Lowest projected unemployment or policy rate in the scenario. For
mainland China, the rate shown is the Loan Prime Rate.
3 Lowest projected year-on-year percentage change in inflation in the
scenario.
Consensus Upside scenario 2025-2029 (as at 4Q24)
UK US Hong Kong Mainland China France UAE Mexico
GDP level 11.3 (4Q29) 13.6 (4Q29) 21.4 (4Q29) 27.5 (4Q29) 8.9 (4Q29) 28.9 (4Q29) 13.6 (4Q29)
(%, start-to-peak)(1)
Unemployment rate 3.5 (3Q26) 3.6 (1Q26) 2.9 (4Q29) 4.9 (4Q26) 6.4 (4Q26) 2.2 (4Q26) 3.0 (1Q25)
(%, min)(2)
House price index 24.2 (4Q29) 23.6 (4Q29) 25.3 (4Q29) 9.8 (4Q29) 22.8 (4Q29) 26.1 (4Q29) 31.7 (4Q29)
(%, start-to-peak)(1)
Inflation rate 1.4 (1Q26) 1.6 (2Q26) (0.1) (4Q25) (1.0) (4Q25) 0.1 (4Q25) 0.6 (4Q25) 3.1 (2Q26)
(YoY % change, min)(3)
Central bank policy rate 3.6 (4Q25) 3.6 (1Q29) 4.0 (1Q29) 2.7 (1Q26) 1.4 (3Q25) 3.6 (1Q29) 7.6 (1Q26)
(%, min)(2)
1 Cumulative change to the highest level of the series during the
20-quarter projection.
2 Lowest projected unemployment or policy rate in the scenario. For
mainland China, the rate shown is the Loan Prime Rate.
3 Lowest projected year-on-year percentage change in inflation in the
scenario.
Consensus Downside scenario 2Q25-1Q30 (as at 1Q25)
UK US Hong Kong Mainland China France UAE Mexico
GDP level (0.7) (2Q27) (0.9) (4Q25) (4.3) (1Q27) (2.0) (4Q25) (0.2) (4Q25) 0.4 (2Q25) (1.2) (4Q26)
(%, start-to-trough)(1)
Unemployment rate 6.2 (1Q27) 5.3 (2Q26) 4.3 (1Q27) 6.7 (3Q27) 8.6 (2Q26) 2.6 (1Q27) 4.2 (4Q26)
(%, max)(2)
House price index (4.7) (3Q26) (0.6) (2Q25) (7.0) (1Q26) (7.7) (4Q26) 0.4 (3Q25) (0.1) (2Q25) 0.9 (2Q25)
(%, start-to-trough)(1)
Inflation rate 4.5 (4Q25) 4.5 (4Q25) 3.5 (2Q25) 2.1 (1Q26) 2.8 (4Q25) 3.0 (2Q26) 5.9 (1Q26)
(YoY % change, max)(3)
Central bank policy rate 4.7 (2Q25) 4.7 (2Q25) 5.0 (2Q25) 3.0 (2Q25) 3.1 (4Q25) 4.7 (2Q25) 10.2 (4Q25)
(%, max)(2)
1 Cumulative change to the lowest level of the series during the
20-quarter projection.
2 Highest projected unemployment or policy rate in the scenario. For
mainland China, the rate shown is the Loan Prime Rate.
3 Highest projected year-on-year percentage change in inflation in the
scenario.
Consensus Downside scenario 2025-2029 (as at 4Q24)
UK US Hong Kong Mainland China France UAE Mexico
GDP level (1.0) (4Q26) (0.6) (3Q25) (4.5) (4Q25) (2.5) (3Q25) (0.6) (1Q26) 0.3 (1Q25) (2.1) (4Q26)
(%, start-to-trough)(1)
Unemployment rate 6.1 (4Q25) 5.3 (3Q25) 5.1 (2Q26) 6.9 (4Q26) 8.3 (3Q25) 3.4 (1Q26) 4.1 (4Q25)
(%, max)(2)
House price index (4.5) (1Q26) (0.2) (1Q25) (1.9) (2Q26) (12.8) (3Q26) (0.3) (1Q25) (0.4) (1Q25) 2.1 (1Q25)
(%, start-to-trough)(1)
Inflation rate 3.4 (4Q25) 4.5 (1Q26) 3.1 (1Q26) 2.0 (1Q26) 2.6 (3Q25) 2.8 (1Q26) 7.4 (4Q25)
(YoY % change, max)(3)
Central bank policy rate 5.0 (1Q25) 4.8 (1Q25) 5.2 (1Q25) 3.0 (1Q25) 3.2 (1Q25) 4.8 (1Q25) 11.5 (3Q25)
(%, max)(2)
1 Cumulative change to the lowest level of the series during the
20-quarter projection.
2 Highest projected unemployment or policy rate in the scenario. For
mainland China, the rate shown is the Loan Prime Rate.
3 Highest projected year-on-year percentage change in inflation in the
scenario.
Downside 2 scenario 2Q25-1Q30 (as at 1Q25)
UK US Hong Kong Mainland China France UAE Mexico
GDP level (8.8) (3Q26) (4.1) (2Q26) (9.7) (3Q26) (7.9) (1Q26) (7.5) (2Q26) (6.4) (3Q26) (9.5) (4Q26)
(%, start-to-trough)(1)
Unemployment rate 8.6 (3Q26) 9.5 (3Q26) 6.2 (1Q26) 6.9 (1Q27) 10.6 (1Q27) 3.9 (4Q25) 5.9 (3Q26)
(%, max)(2)
House price index (29.2) (1Q27) (15.8) (1Q26) (30.8) (3Q26) (26.0) (2Q27) (14.1) (3Q27) (14.2) (3Q27) 0.9 (2Q25)
(%, start-to-trough)(1)
Inflation rate 11.2 (3Q25) 5.8 (4Q25) 3.9 (1Q26) 4.8 (1Q26) 7.5 (3Q25) 3.0 (1Q26) 6.3 (1Q26)
(YoY % change, max)(3)
Central bank policy rate 5.3 (2Q25) 5.4 (2Q25) 5.8 (2Q25) 3.3 (4Q25) 4.0 (2Q25) 5.4 (2Q25) 10.9 (4Q25)
(%, max)(2)
1 Cumulative change to the lowest level of the series during the
20-quarter projection.
2 Highest projected unemployment or policy rate in the scenario. For
mainland China, the rate shown is the Loan Prime Rate.
3 Highest projected year-on-year percentage change in inflation in the
scenario.
Downside 2 scenario 2025-2029 (as at 4Q24)
UK US Hong Kong Mainland China France UAE Mexico
GDP level (9.1) (2Q26) (4.1) (2Q26) (10.1) (4Q25) (8.7) (4Q25) (7.9) (2Q26) (6.8) (2Q26) (10.5) (3Q26)
(%, start-to-trough)(1)
Unemployment rate 8.4 (2Q26) 9.3 (2Q26) 7.1 (1Q26) 7.1 (4Q26) 10.4 (1Q27) 5.0 (3Q25) 5.6 (1Q26)
(%, max)(2)
House price index (27.2) (4Q26) (15.8) (4Q25) (34.4) (3Q27) (30.5) (4Q26) (14.0) (2Q27) (13.2) (2Q27) 2.0 (1Q25)
(%, start-to-trough)(1)
Inflation rate 10.1 (2Q25) 4.9 (4Q25) 3.6 (1Q26) 3.8 (4Q25) 7.6 (2Q25) 3.7 (2Q25) 7.9 (4Q25)
(YoY % change, max)(3)
Central bank policy rate 5.5 (1Q25) 5.5 (1Q25) 5.9 (1Q25) 3.5 (3Q25) 4.2 (1Q25) 5.6 (1Q25) 12.1 (3Q25)
(%, max)(2)
1 Cumulative change to the lowest level of the series during the
20-quarter projection.
2 Highest projected unemployment or policy rate in the scenario. For
mainland China, the rate shown is the Loan Prime Rate.
3 Highest projected year-on-year percentage change in inflation in the
scenario.
The following table describes the probabilities assigned in each scenario.
Scenario weightings, %
Standard weights UK US Hong Kong Mainland China France UAE Mexico
1Q25
Upside 10 5 5 5 5 5 5 5
Central 75 65 65 65 65 65 65 65
Downside 10 25 25 25 25 25 25 25
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
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 to both internal and external assessments of risk.
For the first quarter of 2025, scenario weights were adjusted to the downside
to reflect greater risk and uncertainty around the Central scenario
projection. Management assessed that a change to global scenario weightings
was appropriate given the increase in market measures of volatility and policy
uncertainty in response to the implementation of US tariff policies from early
February onwards and announced retaliatory actions from US trading partners.
The re-weighting of scenarios was global in scope, reflecting the particular
downside risk to the US economy and its importance to the global economic and
financial system. As a consequence, the consensus Upside and Central scenarios
for all key markets were assigned a combined weighting of 70%, down from 85%
at 31 December 2024. The remaining 30% was assigned to the two Downside
scenarios, with the consensus Downside 1 scenario being awarded a weight of
25% and 5% assigned to the Downside 2 scenario.
The swift implementation and subsequent pause in tariffs for many countries on
9 April 2025 affirmed the high level of uncertainty attached to the economic
outlook. The uncertain policy direction has contributed to increased financial
market volatility, as well as declines in both business and consumer
confidence, supporting the decision for re-weighting scenarios to reflect more
significant downside risks.
Management judgemental adjustments
In the context of IFRS 9, management judgemental adjustments are typically
short-term increases or decreases to the modelled allowance for ECL at either
a customer, segment or portfolio level where management believes allowances do
not sufficiently reflect the credit risk/expected credit losses at the
reporting date. These can relate to risks or uncertainties that are not
reflected in the models and/or to any late-breaking events with significant
uncertainty, subject to management review and challenge. The drivers of
management judgemental adjustments continue to evolve with the economic
environment and as new risks emerge. Further details can be found in the
section 'Management judgemental adjustments' on page 155 of the Annual Report
and Accounts 2024.
Management judgemental adjustments are reviewed under the governance process
for IFRS 9, as detailed in the section 'Credit risk management' on page 139 of
the Annual Report and Accounts 2024.
At 31 March 2025, management judgmental adjustments were an increase to
allowance for ECL of $0.3bn (31 December 2024: $0.1bn increase). Management
judgemental adjustments increased $0.2bn from 31 December 2024.
At 31 March 2025, wholesale management judgemental adjustments were an
increase to allowance for ECL of $0.2bn (31 December 2024: $0.1bn increase),
mostly to reflect heightened uncertainty in specific sectors and geographies,
including adjustments to exposures to the real estate sectors booked in Hong
Kong, mainland China and the US, and adjustments to exposures to the
automotive and industrial sectors in Germany.
In the retail portfolio, management judgemental adjustments were an increase
to modelled ECL of $0.1bn at 31 March 2025 (31 December 2024: $0.0bn
increase). These adjustments were made to address portfolio-specific
uncertainties across a number of markets in which HSBC operates.
Economic scenarios sensitivity analysis of ECL estimates
Management considered the sensitivity of the ECL outcome against the economic
forecasts as part of the ECL governance process by recalculating the ECL under
each scenario described above for selected portfolios, applying a 100%
weighting to each scenario in turn. The weighting is reflected in both the
determination of a significant increase in credit risk and the measurement of
the resulting ECL.
The allowance for ECL calculated for the Upside and Downside scenarios should
not be taken to represent the upper and lower limits of possible ECL outcomes.
The impact of defaults that might occur in the future under different economic
scenarios is captured by recalculating ECL for loans at the balance sheet
date.
There is a particularly high degree of estimation uncertainty in numbers
representing more severe risk scenarios when assigned a 100% weighting.
For wholesale credit risk exposures, the sensitivity analysis excludes
allowance for ECL and financial instruments related to defaulted (stage 3)
obligors. Loans to defaulted obligors are a small portion of the overall
wholesale lending exposure, even if representing the majority of the allowance
for ECL. The measurement of stage 3 ECL is relatively more sensitive to credit
factors specific to the obligor than future economic scenarios, and therefore
the effects of macroeconomic factors are not necessarily the key consideration
when performing individual assessments of allowances for obligors in default.
Due to the range and specificity of the credit factors to which the ECL is
sensitive, it is not possible to provide a meaningful alternative sensitivity
analysis for a consistent set of risks across all defaulted obligors.
For retail credit risk exposures, the sensitivity analysis includes ECL
allowance for loans and advances to customers related to defaulted obligors.
This is because the retail ECL allowance for secured mortgage portfolios,
including loans in all stages, is sensitive to macroeconomic variables.
Group ECL sensitivity results
The allowance for ECL of the scenarios and management judgemental adjustments
is highly sensitive to movements in economic forecasts. If the Group allowance
for ECL balance was estimated solely on the basis of the Central scenario,
Downside scenario or the Downside 2 scenario at 31 March 2025, it would
increase/(decrease) as presented in the below table.
Retail Wholesale(1)
Total Group ECL at 31 Mar 2025(2) $bn $bn
Reported ECL 2.5 2.4
Scenarios
100% consensus Central scenario (0.1) (0.3)
100% consensus Upside scenario (0.1) (0.7)
100% consensus Downside scenario 0.0 0.5
100% Downside 2 scenario 1.4 4.1
Total Group ECL at 31 Dec 2024(2)
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
1 Includes low credit-risk financial instruments, such as debt
instruments at FVOCI, which have high carrying values but low ECL under all
the scenarios.
2 ECL sensitivities exclude portfolios utilising less complex
modelling approaches for the retail portfolio and defaulted obligors for the
wholesale portfolio.
At 31 March 2025, the Group allowance for ECL increased by $0.1bn and $0.2bn
in the retail and wholesale portfolios respectively, compared with 31 December
2024.
For the wholesale and retail portfolios, the allowance for ECL under each of
the consensus scenarios remained stable when compared with 31 December 2024.
As a result of the re-weighting of scenarios, the reported ECL is now more
reflective of the downside risks and therefore the sensitivity has decreased
relative to the downside scenarios for both the wholesale and retail
portfolios.
Personal lending
Total personal lending for loans and advances to customers at amortised cost
by stage distribution
Gross carrying amount Allowance for ECL
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
$m $m $m $m $m $m $m $m
By legal entity
HSBC UK Bank plc 156,566 34,368 1,157 192,091 (149) (344) (238) (731)
HSBC Bank plc 17,277 1,071 310 18,658 (15) (28) (94) (137)
The Hongkong and Shanghai Banking Corporation Limited 191,362 5,964 1,190 198,516 (177) (391) (169) (737)
HSBC Bank Middle East Limited 3,527 160 44 3,731 (12) (27) (32) (71)
HSBC North America Holdings Inc. 21,162 521 359 22,042 (5) (12) (12) (29)
Grupo Financiero HSBC, S.A. de C.V. 10,912 1,227 657 12,796 (202) (403) (285) (890)
Other trading entities 777 48 3 828 (7) (3) (2) (12)
At 31 Mar 2025 401,583 43,359 3,720 448,662 (567) (1,208) (832) (2,607)
By legal entity
HSBC UK Bank plc 152,338 31,325 1,075 184,738 (148) (307) (211) (666)
HSBC Bank plc 23,501 1,198 324 25,023 (17) (24) (99) (140)
The Hongkong and Shanghai Banking Corporation Limited 191,614 5,519 1,170 198,303 (174) (385) (164) (723)
HSBC Bank Middle East Limited 3,678 158 40 3,876 (14) (29) (30) (73)
HSBC North America Holdings Inc. 20,851 497 327 21,675 (4) (12) (11) (27)
Grupo Financiero HSBC, S.A. de C.V. 11,016 1,172 620 12,808 (207) (400) (279) (886)
Other trading entities 748 50 4 802 (6) (1) (2) (9)
At 31 Dec 2024 403,746 39,919 3,560 447,225 (570) (1,158) (796) (2,524)
Wholesale lending
Total wholesale lending for loans and advances to banks and customers at
amortised cost by stage distribution
Gross carrying amount 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 $m
By legal entity
HSBC UK Bank plc 83,012 12,962 3,450 - 99,424 (186) (449) (584) - (1,219)
HSBC Bank plc 88,354 6,181 2,204 49 96,788 (57) (109) (773) (25) (964)
The Hongkong and Shanghai Banking Corporation Limited 279,679 29,511 11,710 56 320,956 (181) (769) (3,022) (37) (4,009)
HSBC Bank Middle East Limited 27,636 775 864 3 29,278 (15) (6) (501) (3) (525)
HSBC North America Holdings Inc. 31,127 4,366 707 193 36,393 (35) (121) (196) - (352)
Grupo Financiero HSBC, S.A. de C.V. 12,267 1,750 240 - 14,257 (39) (64) (127) - (230)
Other trading entities 9,200 312 319 - 9,831 (13) (3) (183) - (199)
Holding companies, shared service centres and intra-Group eliminations 67 - - - 67 - - - - -
At 31 Mar 2025 531,342 55,857 19,494 301 606,994 (526) (1,521) (5,386) (65) (7,498)
By legal entity
HSBC UK Bank plc 81,630 12,772 3,356 - 97,758 (197) (403) (603) - (1,203)
HSBC Bank plc 85,022 5,843 2,305 47 93,217 (54) (111) (752) (22) (939)
The Hongkong and Shanghai Banking Corporation Limited 279,535 27,078 11,483 39 318,135 (170) (677) (2,999) (28) (3,874)
HSBC Bank Middle East Limited 26,359 951 848 4 28,162 (20) (6) (463) (1) (490)
HSBC North America Holdings Inc. 30,107 4,665 503 - 35,275 (31) (141) (121) - (293)
Grupo Financiero HSBC, S.A. de C.V. 11,957 1,703 230 - 13,890 (35) (48) (128) - (211)
Other trading entities 7,840 515 332 - 8,687 (10) (4) (180) - (194)
Holding companies, shared service centres and intra-Group eliminations 76 - - - 76 - - - - -
At 31 Dec 2024 522,526 53,527 19,057 90 595,200 (517) (1,390) (5,246) (51) (7,204)
Capital risk
Capital overview
Capital and liquidity adequacy metrics
At
31 Mar 2025 31 Dec 2024
Risk-weighted assets ('RWAs') ($bn)
Credit risk 674.8 657.9
Counterparty credit risk 36.7 37.7
Market risk 34.4 36.2
Operational risk 107.4 106.5
Total risk-weighted assets 853.3 838.3
Capital on a transitional basis ($bn)
Common equity tier 1 capital 125.5 124.9
Tier 1 capital 144.3 144.1
Total capital 169.8 172.4
Capital ratios on a transitional basis (%)
Common equity tier 1 ratio 14.7 14.9
Tier 1 ratio 16.9 17.2
Total capital ratio 19.9 20.6
Capital on an end point basis ($bn)
Common equity tier 1 capital 125.5 124.9
Tier 1 capital 144.3 144.1
Total capital 169.8 168.5
Capital ratios on an end point basis (%)
Common equity tier 1 ratio 14.7 14.9
Tier 1 ratio 16.9 17.2
Total capital ratio 19.9 20.1
Liquidity coverage ratio ('LCR')
Total high-quality liquid assets ($bn) 660.7 649.2
Total net cash outflow ($bn) 475.2 470.7
LCR (%) 139 138
References 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.
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. Accordingly, our current period numbers are the
same on both the transitional and end-point basis.
Regulatory numbers and ratios are as presented at the date of reporting. Small
changes may exist between these numbers and ratios and those subsequently
submitted in regulatory filings. Where differences are significant, we may
restate in subsequent periods.
Capital
At 31 March 2025, our CET1 capital ratio decreased to 14.7% from 14.9% at 31
December 2024, driven by an increase in RWAs of $15.0bn, partly offset by an
increase in CET1 capital of $0.6bn.
The key drivers impacting the CET1 ratio were:
- a 0.2 percentage point increase from capital generation, mainly
through regulatory profits and other reserves, partly offset by dividends and
the share buy-back announced at our full-year 2024 results;
- a 0.2 percentage point decrease due to the loss on the
reclassification of a retained portfolio of home and other loans in France as
hold-to-collect-and-sell, and measured at FVOCI;
- a 0.1 percentage point decrease driven by higher RWAs, mainly from
asset quality and asset size movements; and
- a 0.1 percentage point decrease driven by a rise in regulatory
deductions, due to a net increase in financial sector entities, mainly in
BoCom, and a decrease in allowable non-controlling interest, chiefly in Hong
Kong.
The above excludes foreign exchange translation differences, which have an
immaterial impact on the CET1 ratio.
Our Pillar 2A requirement at 31 March 2025, as per 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 required to be met by CET1. Throughout 1Q25,
we complied with the PRA's regulatory capital adequacy requirement.
Leverage
Leverage ratio
At
31 Mar 2025 31 Dec 2024
$bn $bn
Tier 1 capital (leverage) 144.3 144.1
Total leverage ratio exposure 2,652.0 2,571.1
% %
Leverage ratio 5.4 5.6
Our leverage ratio was 5.4% at 31 March 2025, down from 5.6% at 31 December
2024, due to an increase in leverage exposures, driven by growth in the
balance sheet and the impact of foreign currency translation differences.
At 31 March 2025, our UK minimum leverage ratio requirement of 3.25% was
supplemented by a leverage ratio buffer of 0.9%, which consisted of an
additional leverage ratio buffer of 0.7% and a countercyclical leverage ratio
buffer of 0.2%. These buffers translated into capital of $18.6bn and $5.3bn
respectively. We exceeded these leverage requirements throughout 1Q25.
Risk-weighted assets
RWAs by business segment
Hong Kong UK CIB IWPB Corporate Total
Centre
RWAs
$bn $bn $bn $bn $bn $bn
Credit risk 121.6 120.0 278.8 70.2 84.2 674.8
Counterparty credit risk 0.1 0.1 34.6 0.6 1.3 36.7
Market risk 1.2 - 27.1 0.1 6.0 34.4
Operational risk(1) 22.0 19.7 54.2 15.6 (4.1) 107.4
At 31 Mar 2025 144.9 139.8 394.7 86.5 87.4 853.3
At 31 Dec 2024(1) 143.7 133.5 388.0 85.7 87.4 838.3
1 RWAs balance includes HSBC Argentina operational risk RWAs due to
the averaging calculation and will roll off over future reporting cycles.
RWAs by legal entities(1)
HSBC UK Bank plc HSBC Bank plc The Hongkong and Shanghai Banking Corporation Limited HSBC Bank Middle East Limited HSBC North America Holdings Inc Grupo Financiero HSBC, S.A. Other trading entities(3) Holding companies, shared service centres and intra-Group eliminations Total
de C.V.
RWAs
$bn $bn $bn $bn $bn $bn $bn $bn $bn
Credit risk 123.2 73.6 318.2 20.1 62.2 24.1 42.8 10.6 674.8
Counterparty credit risk 0.3 19.0 10.9 0.6 3.5 0.6 1.8 - 36.7
Market risk(2) 0.1 24.3 23.6 2.2 2.9 0.6 1.5 1.6 34.4
Operational risk 21.2 20.2 54.6 4.6 7.7 4.9 6.5 (12.3) 107.4
At 31 Mar 2025 144.8 137.1 407.3 27.5 76.3 30.2 52.6 (0.1) 853.3
At 31 Dec 2024 138.3 137.6 402.8 26.6 74.4 29.7 50.7 838.3
(0.6)
1 Balances are on a third-party Group consolidated basis.
2 Market risk RWAs are non-additive across the legal entities due to
diversification effects within the Group.
3 RWAs balance includes HSBC Bank Argentina operational risk RWAs due
to the averaging calculation and will roll off over future reporting cycles.
RWA movement by legal entities by key driver(1)
Credit risk, counterparty credit risk and operational risk
HSBC UK Bank plc HSBC Bank plc The Hongkong and Shanghai Banking Corporation Limited HSBC Bank Middle East Limited HSBC North America Holdings Inc Grupo Financiero HSBC, S.A. Other trading entities(4) Holding companies, shared service centres and intra-Group eliminations Market risk Total RWAs
de C.V.
$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 1.1 (0.3) 0.8 0.6 1.9 0.1 1.8 (1.8) 4.5
0.3
Asset quality 1.8 0.2 4.2 (0.4) (0.6) (0.1) (0.4) - 4.7
-
Model updates - - 0.1 (0.1) - - - - -
-
Methodology and policy (0.1) (0.8) (2.0) 0.6 0.4 - 0.2 - (1.7)
-
Acquisitions and disposals(2) - (0.5) - - - - - - (0.5)
-
Foreign exchange movements(3) 3.8 2.7 0.8 0.1 - 0.4 0.1 - 8.0
0.1
Total RWA movement 6.6 1.3 3.9 0.8 1.7 0.4 1.7 (1.8) 15.0
0.4
RWAs at 31 Mar 2025 144.7 112.8 383.7 25.3 73.4 29.6 51.1 (1.7) 34.4 853.3
1 Balances are on a third-party Group consolidated basis.
2 Constitutes operational risk RWAs balance for the disposal of our
retail banking operations in France following receipt of a PRA waiver granted
in February 2025.
3 Credit 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.
4 RWAs balance includes HSBC Argentina operational risk RWAs due to
the averaging calculation and will roll off over future reporting cycles.
RWA movement by business segment by key driver
Credit risk, counterparty credit risk and operational risk Market risk Total RWAs
Hong Kong UK CIB IWPB Corporate Centre
$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 (1.1) 1.1 4.5 0.4 (1.8) 4.5
1.4
Asset quality 3.2 1.5 0.1 (0.1) - 4.7
-
Model updates 0.2 - (0.2) - - -
-
Methodology and policy (0.6) (0.1) (0.7) (0.1) (0.2) - (1.7)
Acquisitions and disposals(1) - - - - (0.5) - (0.5)
Foreign exchange movements(2) - 3.8 3.2 0.6 - 8.0
0.4
Total RWA movement 1.7 6.3 6.9 0.8 (1.8) 15.0
1.1
RWAs at 31 Mar 2025(3) 143.7 139.8 367.6 86.4 81.4 34.4 853.3
1 Constitutes operational risk RWAs balance for the disposal of our
retail banking operations in France following receipt of a PRA waiver granted
in February 2025.
2 Credit 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.
3 RWAs balance includes HSBC Argentina operational risk RWAs due to
the averaging calculation and will roll off over future reporting cycles.
RWAs increased by $15.0bn during 1Q25, including a rise of $8.0bn due to
foreign currency translation differences. The remaining $7.0bn increase in
RWAs was predominantly attributed to asset quality and asset size movements.
Asset size
In our Hong Kong business, RWAs decreased by $1.1bn due to a fall in corporate
lending.
In our UK business, RWAs increased by $1.1bn, primarily due to higher
corporate lending.
CIB RWAs increased by $4.5bn, primarily due to higher corporate exposures,
mainly in India, Singapore, Australia, the US and HSBC Bank plc.
Corporate Centre RWAs increased by $1.4bn, largely driven by higher central
bank balances, and lending growth in SAB.
Market risk RWAs decreased by $1.8bn as periods of greater volatility dropped
out of the data on which stressed value at risk is calculated, and due to a
fall in foreign exchange risk.
Asset quality
The $4.7bn rise in RWAs was primarily due to unfavourable credit risk
migrations and portfolio mix changes, mainly in Hong Kong and the UK.
Methodology and policy
The decrease of $1.7bn was primarily due to credit risk parameter refinements
in CIB, mainly in Asia and Hong Kong. A further decrease in RWAs was driven by
restructuring of securitisation legacy positions in HSBC Bank plc, partly
offset by an increase in the Middle East, both in Corporate Centre.
Regulatory and other developments
The Prudential Regulation Authority ('PRA') published the second part of its
near-final rules on the UK's implementation of Basel 3.1 on 12 September
2024. On 17 January 2025, the PRA revised the implementation date to 1 January
2027 to allow greater clarity regarding implementation in the US. The RWA
output floor is now subject to a three-year transitional provision, ensuring
that the date for full implementation remains 1 January 2030. We continue to
assess the impact of Basel 3.1 standards on our capital, including the recent
release of more beneficial PRA near-final rules, developments in the US and
associated implementation challenges (including data provision). We expect
that the impact on our CET1 ratio at 1 January 2027 will be a modest benefit.
u For further details, see our Pillar 3 Disclosures at 31 March 2025,
which is expected to be published on or around 7 May 2025 at
www.hsbc.com/investors.
Additional information
Dividends
Fourth interim dividend for 2024
On 19 February 2025, the Directors approved a fourth interim dividend for 2024
of $0.36 per ordinary share, which was paid on 25 April 2025 in cash. The
pound sterling and Hong Kong dollar amounts of approximately £0.273198 and
HK$2.791007 were calculated using the forward exchange rates quoted by HSBC
Bank plc in London at or about 11.00am on 14 April 2025.
First interim dividend for 2025
On 29 April 2025, the Directors approved a first interim dividend in respect
of the financial year ending 31 December 2025 of $0.10 per ordinary share (the
'dividend'), a distribution of approximately $1.765bn. The dividend will be
payable on 20 June 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 9 May 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 9 June 2025. The ordinary shares in London, Hong Kong and
Bermuda will be quoted ex-dividend on 8 May 2025. American Depositary Shares
('ADSs') in New York will be quoted ex-dividend on 9 May 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 5 June 2025 to be effective
for this dividend.
The dividend will be payable on ADSs, each of which represents five ordinary
shares, on 20 June 2025 to holders of record on 9 May 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 30 May 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 9 May 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 9 May 2025. Any person wishing to remove ordinary
shares to or from each register must do so before 4.00pm local time on 8 May
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 on 9 May 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 shares
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 16 June 2025 to holders of record on 30
May 2025.
For and on behalf of
HSBC Holdings plc
Aileen Taylor
Company Secretary
The Board of Directors of HSBC Holdings plc as at the date of this
announcement comprises: Sir Mark Edward Tucker(*), Georges Bahjat Elhedery,
Geraldine Joyce Buckingham(†), Rachel Duan(†), Dame Carolyn Julie
Fairbairn(†), James Anthony Forese(†), Ann Frances Godbehere(†), Steven
Craig Guggenheimer(†), Manveen (Pam) Kaur, Dr José Antonio Meade
Kuribreña(†), Kalpana Jaisingh Morparia(†), Eileen K Murray(†), Brendan
Robert Nelson(†) and Swee Lian Teo(†).
* Non-executive Group Chairman
† Independent non-executive Director
Investor relations/media relations contacts
For further information contact:
Investor relations Media relations
UK - Neil Sankoff UK - Gillian James
Telephone: +44 (0) 20 7991 5072 Telephone: +44 (0)7584 404 238
Email: investorrelations@hsbc.com Email: pressoffice@hsbc.com
Hong Kong - Yafei Tian Hong Kong - Aman Ullah
Telephone: +852 2899 8909 Telephone: +852 3941 1120
Email: investorrelations@hsbc.com.hk Email: aspmediarelations@hsbc.com.hk
Cautionary statement regarding forward-looking statements
This Earnings Release 1Q25 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 environmental, social and governance ('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 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, 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
new trade policies announced by the US and potential measures that may be
adopted by several 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 rising 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 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 - Managing risk' on page 35 of this Earnings Release 1Q25.
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 Earnings Release 1Q25 is available in our Annual Report and Accounts
for the fiscal year ended 31 December 2024, which was filed with the SEC on
Form 20-F on 20 February 2025.
Abbreviations
1Q24 First quarter of 2024
1Q25 First quarter of 2025
2Q25 Second quarter of 2025
4Q24 Fourth quarter of 2024
ADRs American Depositary Receipts
ADS American Depositary Share
AIBL Average interest-bearing liabilities
AIEA Average interest-earning assets
Banking NII Banking net interest income
Basel 3.1 Outstanding measures to be implemented from the Basel III reforms
BoCom Bank of Communications Co., Limited, one of China's largest banks
Bps Basis points. One basis point is equal to one-hundredth of a percentage point
CET1 Common equity tier 1
CIB Corporate and Institutional Banking, a business segment
CODM Chief Operating Decision Maker
Corporate Centre Corporate Centre comprises Central Treasury, our legacy businesses, interests
in our associates and joint ventures, central stewardship costs and
consolidation adjustments
CRR II The regulatory requirements of the Capital Requirements Regulation and
Directive, the CRR II regulation and the PRA Rulebook
CSM Contractual service margin
Dec December
ECL Expected credit losses. In the income statement, ECL is recorded as a change
in expected credit losses and other credit impairment charges. In the balance
sheet, ECL is recorded as an allowance for financial instruments to which only
the impairment requirements in IFRS 9 are applied
ESG Environmental, social and governance
EU European Union
FDIC Federal Deposit Insurance Corporation
FTE Full-time equivalent staff
FVOCI Fair value through other comprehensive income
FX Foreign exchange
GAAP Generally accepted accounting principles
Galicia Grupo Financiero Galicia
GDP Gross domestic product
GPS Global Payments Solutions
Group HSBC Holdings together with its subsidiary undertakings
GTS Global Trade Solutions, the business formerly known as Global Trade and
Receivables Finance
Hong Kong Hong Kong Special Administrative Region of the People's Republic of China
HSBC HSBC Holdings together with its subsidiary undertakings
HSBC Bank plc HSBC Bank plc, also known as the non-ring-fenced bank
HSBC Holdings HSBC Holdings plc, the parent company of HSBC
HSBC UK HSBC UK Bank plc, also known as the ring-fenced bank
Ibor Interbank offered rate
IFRSs International Financial Reporting Standards
IWPB International Wealth and Premier Banking, a business segment
JV Joint venture
LCR Liquidity coverage ratio
Long term For our financial targets, we define long term as five to six years,
commencing 1 January 2025
M&A Mergers and acquisitions
Mainland China People's Republic of China excluding Hong Kong and Macau
Mar March
Medium term For our financial targets, we define medium term as three to four years,
commencing 1 January 2025
Net operating income Net operating income before change in expected credit losses and other credit
impairment charges, also referred to as revenue
NII Net interest income
NIM Net interest margin
POCI Purchased or originated credit-impaired financial assets
PRA Prudential Regulation Authority (UK)
Revenue Net operating income before change in expected credit losses and other credit
impairment charges
RoE Return on average ordinary shareholders' equity
RoTE Return on average tangible equity
RWA Risk-weighted asset
SAB Saudi Awwal Bank, which was formed from the merger between The Saudi British
Bank and Alawwal Bank
SVB UK Silicon Valley Bank UK Limited, now HSBC Innovation Bank Limited
UAE United Arab Emirates
UK United Kingdom
US United States of America
$m/$bn/$tn United States dollar millions/billions/trillions. We report in US dollars
Registered office and Group head office: 8 Canada Square, London, E14 5HQ,
United Kingdom
Web: www.hsbc.com
Incorporated in England with limited liability. Registered number 617987
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