1Q 2025 Earnings Release

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 retuon 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 retuon 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.

  ▶ 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.

  ▶ 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.

  ▶ 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 https://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 transactions ($m)	9,766	7,206	8,615
  Constant currency revenue excluding notable items and strategic transactions ($m)	17,740	16,172	16,039
  Expected credit losses and other credit impairment charges (annualised) as a % of average gross loans and advances to customers (%)	0.37	0.56	0.29
  Expected credit losses and other credit impairment charges (annualised) as a % of average gross loans and advances to customers, including held for sale (%)	0.37	0.56	0.28
  Basic earnings per share excluding material notable items and related impacts ($)	0.39	0.29	0.34
  Retuon average ordinary shareholders' equity (annualised) (%)	16.6	0.5	24.0
  Retuon average tangible equity (annualised) (%)	17.9	0.5	26.1
  Retuon average tangible equity excluding notable items (annualised) (%)	18.4	13.2	16.4
  Target basis operating expenses ($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 own shares held (millions)	17,668	17,918	18,687
  Period end basic number of $0.50 ordinary shares outstanding and dilutive potential ordinary shares, after deducting own shares held (millions)	17,836	18,062	18,838
  Average basic number of $0.50 ordinary shares outstanding, after deducting own shares held (millions)	17,769	18,042	18,823

  ▶ 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.

  ▶ 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.

  ▶ 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.

Quarter ended

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $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 value basis1	5,356	5,302	5,406
Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss	1,521	(1,988)	1,292
Insurance finance (expense)/income	(1,556)	1,970 (1,327)
Insurance service result	347	309	306
Gains/(losses) recognised on sale of business operations2	2	(5,048)	3,417
Other operating (expense)/income	353	(145) (141)
Net operating income before change in expected credit losses and other credit impairment charges3	17,649	11,564	20,752
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 assets	(7,489)	(8,010) (7,647)
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 -
	%	% %
Retuon average ordinary shareholders' equity (annualised)	16.6	0.5	24.0
Retuon 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 $m	31 Dec 2024 $m	31 Mar 2024 $m
Constant currency revenue1
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 $m	31 Dec 2024 $m	31 Mar 2024 $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 Arabia)	239	205	214
- of which: Saudi Awwal Bank	176	133	145
Holding companies, shared service centres and intra-Group eliminations1	(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 Arabia)	239	200	159
- of which: Saudi Awwal Bank	176	133	145
Holding companies, shared service centres and intra-Group eliminations1	(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.

▶ The tables on pages 23 to 30 reconcile reported to constant currency results for each of our business segments and legal entities.

1Q25 compared with 1Q24 - reported results

Movement in reported profit compared with 1Q24

Quarter ended

	31 Mar 2025 $m	31 Mar 2024 $m	Variance
			1Q25 vs. 1Q24
			$m	%	of which strategic transactions1 $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

	31 Mar 2025 $m	31 Mar 2024 $m	Variance
			1Q25 vs. 1Q24
			$m	%	of which strategic transactions1 $m
Revenue	17,649	20,752	(3,103)	(15)	(4,472)
Banking NII2	10,599	11,266	(667)	(6)	(816)
Fee and other income	7,050	9,486	(2,436)	(26)	(3,656)
- Notable items	(91) 2,290 2,851 2,000	3,732 1,893 2,597 1,264	(3,823) 397 254 736	>(100) 21 10 58	(3,814) (62) (71) 291
- Wealth
- Wholesale Transaction Banking
- Other

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 $m	31 Dec 2024 $m	31 Mar 2024 $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

	31 Mar 2025 $m	31 Mar 2024 $m	Variance
			1Q25 vs. 1Q24
			$m	%	of which strategic transactions1 $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.

▶ 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.

Movement in reported profit compared with 4Q24

Quarter ended

	31 Mar 2025 $m	31 Dec 2024 $m	Variance
			1Q25 vs. 4Q24
			$m	%	of which strategic transactions1 $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

	31 Mar 2025 $m	31 Dec 2024 $m	Variance
			1Q25 vs. 4Q24
			$m	%	of which strategic transactions1 $m
Revenue	17,649	11,564	6,085	53	4,744
Banking NII2	10,599	10,950	(351)	(3)	(165)
Fee and other income	7,050	614	6,436	>100	4,909
- Notable items	(91) 2,290 2,851 2,000	(4,986) 1,758 2,533 1,309	4,895 532 318 691	(98) 30 13 53	4,886 (22) (14) 59
- Wealth
- Wholesale Transaction Banking
- Other

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

	31 Mar 2025 $m	31 Dec 2024 $m	Variance
			1Q25 vs. 4Q24
			$m	%	of which strategic transactions1 $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 $m	31 Dec 2024 $m	31 Mar 2024 $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 yield1	4.66	4.90	5.31
Less: gross interest payable1	(3.34)	(3.60) (4.10)
Net interest spread2	1.32	1.30	1.21
Net interest margin3	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 $m	31 Dec 2024 $m	31 Mar 2024 $m
Net interest income	8,302	8,185	8,653
Banking book funding costs used to generate 'net income from financial instruments held for trading or managed on a fair value basis'	2,403	2,874	2,722
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 $m	31 Dec 2024 $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 through profit or loss	120,340	115,769
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 $m	31 Dec 2024 $m
Loans and advances to customers	944,708	930,658
Loans and advances to customers of disposal groups reported in 'Assets held for sale'	1,246	965
- 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.

▶ 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

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $m	Variance
				1Q25 vs. 1Q24
				$m	%	of which strategic transactions1 $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

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $m	Variance
				1Q25 vs. 1Q24
				$m	%	of which strategic transactions3 $m
Banking NII1	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	87 546 28	74 416 12	61 361 20	26 185 8	43 51 40	- -
- Wealth
- Other2
- Commercial Banking	305	255	288	17	6	-
- Wholesale Transaction Banking	176 27 102	179 18 58	168 25 95	8 2 7	5 8 7	- - -
- Credit and Lending
- Other2
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.

	31 Mar 2025 $m	31 Dec 2024 31 Mar 2024 $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

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $m	Variance
				1Q25 vs. 1Q24
				$m	%	of which strategic transactions1 $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

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $m	Variance
				1Q25 vs. 1Q24
				$m	%	of which strategic transactions3 $m
Banking NII1	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 86 3	80 76 20	52 97 19	10 (11) (16)	19 (11) (84)	- - -
- Wealth
- Other2
- Commercial Banking	291	312	295	(4)	(1)	-
- Wholesale Transaction Banking	216 53 22	216 54 42	215 49 31	1 4 (9)	- 8 (29)	- - -
- Credit and Lending
- Other2
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 13. 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 $m	31 Dec 2024 $m	31 Mar 2024 $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

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $m	Variance
				1Q25 vs. 1Q24
				$m	%	of which strategic transactions1 $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

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $m	Variance
				1Q25 vs. 1Q24
				$m	%	of which strategic transactions3 $m
Banking NII1	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	2,458 250 1,018 143 (126)	2,107 229 502 150 (51)	2,151 234 694 158 (237)	307 16 324 (15) 111	14 7 47 (9) 47	(62) (3) 6 (47) 152
- Investment Banking
- Debt and Equity Markets
- Wholesale Credit and Lending
- Other2
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 13. 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.

	31 Mar 2025 $m	31 Dec 2024 31 Mar 2024 $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

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $m	Variance
				1Q25 vs. 1Q24
				$m	%	of which strategic transactions1 $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 $m	31 Dec 2024 $m	31 Mar 2024 $m	Variance
				1Q25 vs. 1Q24
				$m	%	of which strategic transactions3 $m
Banking NII1	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)
- Other2	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 $m	31 Dec 2024 31 Mar 2024 $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

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $m	Variance
				1Q25 vs. 1Q24
				$m	%	of which strategic transactions1 $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

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $m	Variance
				1Q25 vs. 1Q24
				$m	%	of which strategic transactions4 $m
Banking NII1	(152)	(137) (141)		(11)	(8)	-
Fee and other income2	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)
Revenue3	(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 $m	31 Dec 2024 $m	31 Mar 2024 $m
Revenue
Disposals, wind-downs, acquisitions and related costs1	(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 results1

Quarter ended

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $m
Revenue2
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.

Quarter ended

	31 Mar 2025 $m	31 Dec 2024 $m	31 Mar 2024 $m
Revenue
Disposals, wind-downs, acquisitions and related costs1	(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 costs2	(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 results1

	Quarter ended 31 Mar 2025
	Hong Kong $m	UK $m	CIB $m	IWPB $m	Corporate Centre $m	Total $m
Revenue2	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 $m	UK $m	CIB $m	IWPB $m	Corporate Centre $m	Total $m
Revenue
Disposals, wind-downs, acquisitions and related costs1	-	-	-	(14)	(77)	(91)
Operating expenses
Disposals, wind-downs, acquisitions and related costs	-	-	(26)	(4)	(20)	(50)
Restructuring and other related costs2	(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

					Corporate
	Hong Kong	UK	CIB	IWPB	Centre	Total
	$m	$m	$m	$m	$m	$m
Revenue1
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 Centre	Total
	$m	$m	$m	$m	$m	$m
Notable items
Revenue
Disposals, wind-downs, acquisitions and related costs1	-	-	-	53	3,679	3,732
Operating expenses
Disposals, wind-downs, acquisitions and related costs	-	-	(1)	(1)	(61)	(63)
Restructuring and other related costs2	-	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.

					Corporate
	Hong Kong	UK	CIB	IWPB	Centre	Total
	$m	$m	$m	$m	$m	$m
Revenue1
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 Centre	Total
	$m	$m	$m	$m	$m	$m
Revenue
Disposals, wind-downs, acquisitions and related costs1	-	-	-	(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 costs2	-	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.

At 31 Mar 2025

Reconciliation of reported risk-weighted assets to constant currency risk-weighted assets

					Corporate
	Hong Kong	UK	CIB	IWPB	Centre	Total
	$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	(0.2)	3.9	3.0	0.6	0.4	7.7
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.

Quarter ended 31 Mar 2025

Constant currency results

					Corporate
	Hong Kong	UK	CIB	IWPB	Centre	Total
	$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	-	-	-	-	-	-

					Corporate
	Hong Kong	UK	CIB	IWPB	Centre	Total
	$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 Banking1	- - - -	4 - - -	- - - 17	- - - 9	- 1 1 (5,001)	4 1 1 (4,975)
- retail banking operations in France - banking business in Canada - business in Argentina

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 Banking1	- - - -	- - - -	- - 144 15	- 53 67 (27)	- (1) 4,765 (1,137)	- 52 4,976 (1,149)
- retail banking operations in France - banking business in Canada - business in Argentina

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 basis1

	Quarter ended 31 Mar 2025
	HSBC UK Bank plc $m	HSBC Bank plc $m	The Hongkong and Shanghai Banking Corporation Limited $m	HSBC Bank Middle East Limited $m	HSBC North America Holdings Inc. $m	HSBC Bank Canada $m	Grupo Financiero HSBC, S.A. de C.V. $m	Other trading entities2 $m	Holding companies, shared service centres and intra-Group eliminations $m	Total $m
Revenue3	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	The Hongkong and Shanghai Banking HSBC Corporation Bank plc Limited	HSBC Bank Middle East Limited	HSBC North America Holdings Inc.	HSBC Bank Canada	Grupo Financiero HSBC, S.A. de C.V.	Other trading entities	Holding companies, shared service centres and intra-Group eliminations	Total
	$m	$m $m	$m	$m	$m	$m	$m	$m	$m
Revenue
Disposals, wind-downs, acquisitions and related costs1	-	(14) -	-	-	-	-	-	(77)	(91)
Operating expenses
Disposals, wind-downs, acquisitions and related costs	-	(12) (8)	(5)	(10)	-	-	-	(15)	(50)
Restructuring and other related costs2	(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.

Quarter ended 31 Mar 2024

			The Hongkong and	HSBC	HSBC				Holding companies, shared
			Shanghai Banking	Bank Middle	North America	HSBC	Grupo Financiero	Other	service centres and
	HSBC UK	HSBC	Corporation	East	Holdings	Bank	HSBC, S.A.	trading	intra-group
	Bank plc	Bank plc	Limited	Limited	Inc.	Canada	de C.V.	entities1	eliminations	Total
	$m	$m	$m	$m	$m	$m	$m	$m	$m	$m
Revenue2
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

			The Hongkong and	HSBC	HSBC				Holding companies, shared
			Shanghai Banking	Bank Middle	North America	HSBC	Grupo Financiero	Other	service centres and
	HSBC UK	HSBC	Corporation	East	Holdings	Bank	HSBC, S.A.	trading	intra-group
	Bank plc	Bank plc	Limited	Limited	Inc.	Canada	de C.V.	entities	eliminations	Total
	$m	$m	$m	$m	$m	$m	$m	$m	$m	$m
Revenue
Disposals, wind-downs, acquisitions and related costs1	-	(16)	-	-	-	-	-	-	3,748	3,732
Operating expenses
Disposals, wind-downs, acquisitions and related costs	-	(5)	-	-	(7)	(36)	-	-	(15)	(63)
Restructuring and other related costs2	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

			The Hongkong and	HSBC	HSBC				Holding companies, shared
			Shanghai Banking	Bank Middle	North America	HSBC	Grupo Financiero	Other	service centres and
	HSBC UK	HSBC	Corporation	East	Holdings	Bank	HSBC, S.A.	trading	intra-group
	Bank plc	Bank plc	Limited	Limited	Inc.	Canada	de C.V.	entities1	eliminations	Total
	$m	$m	$m	$m	$m	$m	$m	$m	$m	$m
Revenue2
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

			The Hongkong and	HSBC	HSBC				Holding companies, shared
			Shanghai Banking	Bank Middle	North America	HSBC	Grupo Financiero	Other	service centres and
	HSBC UK	HSBC	Corporation	East	Holdings	Bank	HSBC, S.A.	trading	intra-group
	Bank plc	Bank plc	Limited	Limited	Inc.	Canada	de C.V.	entities	eliminations	Total
	$m	$m	$m	$m	$m	$m	$m	$m	$m	$m
Revenue
Disposals, wind-downs, acquisitions and related costs1	-	(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 costs2	(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.