Disposal groups

Retained portfolio of home and certain other loans in France

Following the sale of our retail banking operations on 1 January 2024, HSBC Continental Europe retained a portfolio of home and certain other

loans, with a carrying value of €7.1bn ($8.3bn) at the time of sale. During the fourth quarter of 2024, we began actively marketing the retained

portfolio for sale. As a result, on 1 January 2025 we reclassified the portfolio to a hold-to-collect-and-sell business model, measuring it at fair

value through other comprehensive income.

Since reclassification, we have recognised a fair value pre-tax loss in other comprehensive income of $1.4bn on the remeasurement of the

financial instruments, which resulted in an approximately 0.2 percentage point reduction in the Group’s CET1 ratio, and a $0.1bn mark-to-market

gain in ‘net income from financial instruments held for trading or managed on a fair value basis‘ on non-qualifying economic hedges entered into

in December 2024, hedging interest rate risk on the portfolio.

On 18 July 2025, HSBC Continental Europe signed a memorandum of understanding with a consortium comprising Rothesay Life plc and CCF

regarding the sale of the portfolio. The potential transaction, which remains subject to relevant information and consultation processes with

respective works councils, is expected to complete in the fourth quarter of 2025. At 30 June 2025, given the advanced stage of agreement on

deal terms and that completion was expected within 12 months, $6.2bn in loans met the criteria to be classified as held for sale in accordance

with IFRS 5. Upon completion, the cumulative fair value changes recognised through other comprehensive income will recycle to the income

statement.

Other disposals

On 27 June 2025, HSBC Continental Europe reached an agreement to sell its custody business in Germany to BNP Paribas, subject to

customary regulatory and anti-trust approvals and the conclusion of negotiations with the works council in Germany. Following these, it is

anticipated that the sale will be completed in a phased manner, starting in the first quarter of 2026. While client consent and related operational

requirements may extend the timing for completion of all client transfers, given the signing of a sale and purchase agreement, the disposal

group met the held for sale criteria at 30 June 2025. As a result, $1bn in assets and $12.6bn in liabilities were classified as held for sale. The

sale is expected to generate an estimated pre-tax gain on disposal of $0.1bn, which will be recognised in line with completion of client transfers.

On 3 July 2025, HSBC Bank plc, a wholly-owned subsidiary of HSBC Holdings plc, entered into a binding agreement to sell its UK life insurance

entity, HSBC Life (UK) Limited, to Chesnara plc. The disposal group, comprising $6.2bn in assets and $5.9bn in liabilities at 30 June 2025, is

expected to be classified as held for sale in the third quarter of 2025, reflecting commitment by the parties to the sale in July 2025, when we

will recognise an estimated pre-tax loss on disposal of $0.1bn. The transaction, which remains subject to regulatory approval, is expected to

complete in early 2026. Upon completion, foreign currency translation reserve losses, which stood at $0.2bn at 30 June 2025, will recycle to the

income statement.

On 11 July 2025, HSBC Continental Europe reached an agreement to sell its fund administration business, Internationale

Kapitalanlagegesellschaft mbH, to BlackFin Capital Partners S.A.S. The disposal group, comprising $0.1bn in assets and $0.1bn in liabilities at

30 June 2025, is expected to be classified as held for sale in the third quarter of 2025, reflecting commitment by the parties to the sale in July

2025. Completion of the potential sale is subject to customary regulatory and competition approvals as well as the conclusion of negotiations

with the German works council, and is expected in the second half of 2026, at which point an immaterial gain on disposal will be recognised.

On 27 July 2025, HSBC Latin America Holdings (UK) Limited, a direct subsidiary of HSBC Holdings plc, entered into a binding agreement for the

sale of its direct subsidiary, HSBC Bank (Uruguay) S.A., to a subsidiary of BTG Pactual Holding SA. The planned sale, which remains subject to

regulatory approval, is targeted for completion in the second half of 2026. The disposal group, comprising $2.2bn in assets and $2.0bn in

liabilities at 30 June 2025, is expected to be classified as held for sale in the second half of 2025, when we will recognise an immaterial loss on

disposal.

On 23 September 2024, HSBC Continental Europe, a wholly-owned subsidiary of HSBC Bank plc, announced the reaching of an agreement to

sell its private banking business in Germany to BNP Paribas. The disposal group met held for sale criteria in the third quarter of 2024, with

balances remaining classified as held for sale at 30 June 2025 of $2.7bn in assets and $2.7bn in liabilities. This sale is expected to complete in

the second half of 2025 and generate an estimated pre-tax gain on disposal of $0.2bn, which will be recognised on completion.

On 25 September 2024, HSBC reached an agreement to transfer its business in South Africa to local lender FirstRand Bank Ltd. The disposal

group met held for sale criteria in the fourth quarter of 2024, with balances remaining classified as held for sale at 30 June 2025 of $0.8bn in

assets and $3.2bn in liabilities. The transaction, which has received regulatory and governmental approvals, is now expected to complete in the

first quarter of 2026. At closing, cumulative foreign currency translation reserves and other reserves will recycle to the income statement. At

30 June 2025, foreign currency translation reserve and other reserve losses stood at $0.2bn.

On 20 December 2024, HSBC Continental Europe signed a memorandum of understanding for the planned sale of its French life insurance

business, HSBC Assurances Vie (France), to Matmut Société d’Assurance Mutuelle. The Share Sale Agreement for the transaction was signed

on 21 March 2025 following completion of all relevant employee information and consultation processes. The transaction, which has received

regulatory approvals, is expected to complete in the second half of 2025. The disposal group met held for sale criteria in the fourth quarter of

2024, with balances remaining classified as held for sale at 30 June 2025 of $27.9bn in assets and $26.9bn in liabilities. The transaction is

estimated to generate a pre-tax loss of $0.2bn inclusive of migration costs and the recycling of related reserves, largely on completion. The

transaction is structured on the basis of a price fixed on the reference date of 30 June 2024. Between this date and completion the loss on

disposal will be adjusted for changes in the net asset value, including the entity’s earnings, which will continue to be consolidated into the

Group’s results until disposal.

On 18 February 2025, HSBC Bank Middle East, Bahrain branch, entered into a binding agreement to transfer its retail banking business in

Bahrain to Bank of Bahrain and Kuwait B.S.C. The transaction, which has received regulatory approval, is expected to complete in the second

half of 2025. The sale is expected to generate an estimated pre-tax gain on disposal of $0.1bn, which will be recognised on completion.


	French life insurance business	German private banking business	South Africa1	Bahrain retail banking business	Germany custody business2	French portfolio of home and certain other loans	Total
	$m	$m	$m	$m	$m	$m	$m
Assets of disposal groups held for sale
Cash and balances at central banks	—	2,305	—	—	—	—	2,305
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss	16,972	—	—	—	—	—	16,972
Derivatives	44	—	7	—	—	—	51
Loans and advances to banks	59	—	—	—	110	—	169
Loans and advances to customers	—	359	758	181	864	—	2,162
Financial investments3	9,663	—	—	—	—	6,191	15,854
Goodwill	—	5	—	—	—	—	5
Prepayments, accrued income and other assets	1,122	19	11	—	40	6	1,198
Total assets at 30 Jun 2025	27,860	2,688	776	181	1,014	6,197	38,716

Liabilities of disposal groups held for sale
Deposits by banks	—	—	—	—	103	—	103
Customer accounts	—	2,662	3,210	824	12,392	—	19,088
Financial liabilities designated at fair value	13	—	—	—	—	—	13
Derivatives	—	—	12	—	—	—	12
Insurance contract liabilities	24,928	—	—	—	—	—	24,928
Accruals, deferred income and other liabilities	1,917	21	22	3	58	—	2,021
Total liabilities at 30 Jun 2025	26,858	2,683	3,244	827	12,553	—	46,165

Expected date of completion	Second half of 2025	Second half of 2025	First quarter of 2026	Second half of 2025	Second half of 2027	Second half of 2025
Operating segment	IWPB	IWPB	CIB and Corporate Centre	IWPB	CIB	Corporate Centre