Basis of preparation and material accounting policies	6 Months Ended
Jun. 30, 2026
Corporate information and statement of IFRS compliance [abstract]
Basis of preparation and material accounting policies	1Basis of preparation and material accounting policies (a)Compliance with International Financial Reporting Standards Our interim condensed consolidated financial statements have been prepared on the basis of the policies set out in the 2025 annual financial statements except for those related to certain amendments to IFRS 9 ‘Financial Instruments’ and IFRS 7 ‘Financial Instruments: Disclosures’ as set out below. They have also been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ as adopted by the UK, IAS 34 ‘Interim Financial Reporting’ as issued by the International Accounting Standards Board (‘IASB’), IAS 34 ‘Interim Financial Reporting’ as adopted by the EU, and the Disclosure Guidance and Transparency Rules sourcebook of the UK’s Financial Conduct Authority. Therefore, they include an explanation of events and transactions that are significant to an understanding of the changes in HSBC’s financial position and performance since the end of 2025. These interim condensed consolidated financial statements should be read in conjunction with the Annual Report and Accounts 2025, which was prepared in accordance with UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006 and international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. These interim condensed consolidated financial statements were also prepared in accordance with International Financial Reporting Standards (‘IFRS Accounting Standards’) as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee. At 30 June 2026, there were no IFRS Accounting Standards effective for the half-year to 30 June 2026 affecting these financial statements that were not approved for adoption in the UK by the UK Endorsement Board. There was no difference between IFRS Accounting Standards adopted by the UK, IFRS Accounting Standards as adopted by the EU, and IFRS Accounting Standards issued by the IASB in terms of their application to HSBC. Standards applied during the half-year to 30 June 2026 On 1 January 2026 the Group adopted ‘Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7’. In addition to guidance as to when certain financial liabilities can be deemed settled when using an electronic payment system, the amendments also provide further clarification regarding the classification of financial assets that contain contractual terms that change the timing or amount of contractual cash flows, including those arising from ESG-related contingencies, and financial assets with certain non-recourse features. These amendments had no material effect on the Group. (b)Use of estimates and judgements Management believes that the critical estimates and judgements applicable to the Group are those that relate to impairment of amortised cost and FVOCI debt financial assets, the valuation of financial instruments, deferred tax assets, provisions, interests in associates, impairment of goodwill and non-financial assets, and post-employment benefit plans. The Group does not consider there to be a significant risk of a material adjustment to the carrying amount of goodwill in this financial year, but does consider this to be an area that is inherently judgemental. There were no material changes in the current period to any of the critical estimates and judgements disclosed in 2025, which are stated on pages 66 and 300 to 311 of the Annual Report and Accounts 2025 on Form 20-F. (c)Composition of the Group There were no material individual changes in the composition of the Group in the half-year to 30 June 2026. Following the privatisation of Hang Seng Bank, the Group acquired the remaining ownership interests, and the related non-controlling interests were derecognised within equity. For details of future business acquisitions and disposals, see Note 15 ‘Assets held for sale, liabilities of disposal groups held for sale and business acquisitions’. (d)Future accounting developments IFRS 18 ‘Presentation and Disclosure in Financial Statements’ In April 2024, the IASB issued IFRS 18 ‘Presentation and Disclosure in Financial Statements’, effective for annual reporting periods beginning on or after 1 January 2027. The new accounting standard aims to give users of financial statements more transparent and comparable information about an entity’s financial performance. It will replace IAS 1 ‘Presentation of Financial Statements’ but carries over many requirements from that IFRS Accounting Standard unchanged. In addition, there are three sets of new requirements relating to the structure of the income statement, management-defined performance measures, and the aggregation and disaggregation of financial information. While IFRS 18 will not change recognition criteria or measurement bases, it will have an impact on presenting information in the financial statements, in particular the income statement and to a lesser extent the cash flow statement. HSBC is currently evaluating impacts and ensuring data readiness is adequate in anticipation of implementation. Amendments to IAS 28 ‘Investments in Associates and Joint Ventures’ In June 2026, the IASB issued ‘Amendments to the Fair Value Option for Investments in Associates and Joint Ventures – Amendments to IAS 28’, applicable when an entity first applies IFRS 18. These narrow-scope amendments, which remain subject to adoption in both the UK and the EU, clarify that entities with a specified main business activity of investing in assets as assessed under IFRS 18 can elect to apply the fair value option to investments in associates and joint ventures. The Group is considering these amendments in the light of ongoing IFRS 18 preparatory work. (e) Going concern The financial statements are prepared on a going concern basis, as the Directors are satisfied that the Group and parent company have the resources to continue in business for the foreseeable future. In making this assessment, the Directors have considered a wide range of information relating to present and future conditions, including future projections of profitability, cash flows, capital requirements and capital resources. These considerations include stressed scenarios that reflect the uncertainty in the macroeconomic environment, including: ongoing supply chain disruptions, uncertain inflation, rapidly-changing interest rates, the impact of the Russia-Ukraine war and conflict in the Middle East, varying pace of recovery in the Hong Kong CRE sector, heightened strategic competition between the US and China, ongoing and potential cross-border investment and trade restrictions, potential financial impact of trade and tariff policy developments, as well as the potential impacts from other top and emerging risks, including climate change, and the related impacts on profitability, capital and liquidity. (f) Accounting policies Except as described above, the accounting policies that we applied for these interim condensed consolidated financial statements are consistent with those described on pages 300 to 311 of the Annual Report and Accounts 2025 on Form 20-F, as are the methods of computation. (g)Presentation of information Certain disclosures have been presented elsewhere in this Form 6-K, rather than in the notes to the financial statements. These are as follows: –Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan commitments and financial guarantees included in the ‘Risk’ section on pages 58 to 60. –Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation included in the ‘Risk’ section on page 61.

Basis of preparation and material accounting policies

6 Months Ended

Jun. 30, 2026

Corporate information and statement of IFRS compliance [abstract]

Basis of preparation and material accounting policies

1Basis of preparation and material accounting policies

(a)Compliance with International Financial Reporting Standards

Our interim condensed consolidated financial statements have been prepared on the basis of the policies set out in the 2025 annual financial

statements except for those related to certain amendments to IFRS 9 ‘Financial Instruments’ and IFRS 7 ‘Financial Instruments: Disclosures’ as set

out below. They have also been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ as adopted by the UK, IAS 34 ‘Interim Financial

Reporting’ as issued by the International Accounting Standards Board (‘IASB’), IAS 34 ‘Interim Financial Reporting’ as adopted by the EU, and the

Disclosure Guidance and Transparency Rules sourcebook of the UK’s Financial Conduct Authority. Therefore, they include an explanation of events

and transactions that are significant to an understanding of the changes in HSBC’s financial position and performance since the end of 2025.

These interim condensed consolidated financial statements should be read in conjunction with the Annual Report and Accounts 2025, which was

prepared in accordance with UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006 and

international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. These interim

condensed consolidated financial statements were also prepared in accordance with International Financial Reporting Standards (‘IFRS Accounting

Standards’) as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee.

At 30 June 2026, there were no IFRS Accounting Standards effective for the half-year to 30 June 2026 affecting these financial statements that

were not approved for adoption in the UK by the UK Endorsement Board. There was no difference between IFRS Accounting Standards adopted by

the UK, IFRS Accounting Standards as adopted by the EU, and IFRS Accounting Standards issued by the IASB in terms of their application to

HSBC.

Standards applied during the half-year to 30 June 2026

On 1 January 2026 the Group adopted ‘Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and

IFRS 7’. In addition to guidance as to when certain financial liabilities can be deemed settled when using an electronic payment system, the

amendments also provide further clarification regarding the classification of financial assets that contain contractual terms that change the timing or

amount of contractual cash flows, including those arising from ESG-related contingencies, and financial assets with certain non-recourse features.

These amendments had no material effect on the Group.

(b)Use of estimates and judgements

Management believes that the critical estimates and judgements applicable to the Group are those that relate to impairment of amortised cost and

FVOCI debt financial assets, the valuation of financial instruments, deferred tax assets, provisions, interests in associates, impairment of goodwill

and non-financial assets, and post-employment benefit plans. The Group does not consider there to be a significant risk of a material adjustment to

the carrying amount of goodwill in this financial year, but does consider this to be an area that is inherently judgemental.

There were no material changes in the current period to any of the critical estimates and judgements disclosed in 2025, which are stated on pages

66 and 300 to 311 of the Annual Report and Accounts 2025 on Form 20-F.

(c)Composition of the Group

There were no material individual changes in the composition of the Group in the half-year to 30 June 2026. Following the privatisation of Hang

Seng Bank, the Group acquired the remaining ownership interests, and the related non-controlling interests were derecognised within equity.

For details of future business acquisitions and disposals, see Note 15 ‘Assets held for sale, liabilities of disposal groups held for sale and business

acquisitions’.

(d)Future accounting developments

IFRS 18 ‘Presentation and Disclosure in Financial Statements’

In April 2024, the IASB issued IFRS 18 ‘Presentation and Disclosure in Financial Statements’, effective for annual reporting periods beginning on or

after 1 January 2027. The new accounting standard aims to give users of financial statements more transparent and comparable information about

an entity’s financial performance. It will replace IAS 1 ‘Presentation of Financial Statements’ but carries over many requirements from that IFRS

Accounting Standard unchanged. In addition, there are three sets of new requirements relating to the structure of the income statement,

management-defined performance measures, and the aggregation and disaggregation of financial information.

While IFRS 18 will not change recognition criteria or measurement bases, it will have an impact on presenting information in the financial

statements, in particular the income statement and to a lesser extent the cash flow statement. HSBC is currently evaluating impacts and ensuring

data readiness is adequate in anticipation of implementation.

Amendments to IAS 28 ‘Investments in Associates and Joint Ventures’

In June 2026, the IASB issued ‘Amendments to the Fair Value Option for Investments in Associates and Joint Ventures – Amendments to IAS 28’,

applicable when an entity first applies IFRS 18. These narrow-scope amendments, which remain subject to adoption in both the UK and the EU,

clarify that entities with a specified main business activity of investing in assets as assessed under IFRS 18 can elect to apply the fair value option

to investments in associates and joint ventures. The Group is considering these amendments in the light of ongoing IFRS 18 preparatory work.

(e) Going concern

The financial statements are prepared on a going concern basis, as the Directors are satisfied that the Group and parent company have the

resources to continue in business for the foreseeable future. In making this assessment, the Directors have considered a wide range of information

relating to present and future conditions, including future projections of profitability, cash flows, capital requirements and capital resources.

These considerations include stressed scenarios that reflect the uncertainty in the macroeconomic environment, including: ongoing supply chain

disruptions, uncertain inflation, rapidly-changing interest rates, the impact of the Russia-Ukraine war and conflict in the Middle East, varying pace of

recovery in the Hong Kong CRE sector, heightened strategic competition between the US and China, ongoing and potential cross-border

investment and trade restrictions, potential financial impact of trade and tariff policy developments, as well as the potential impacts from other top

and emerging risks, including climate change, and the related impacts on profitability, capital and liquidity.

(f) Accounting policies

Except as described above, the accounting policies that we applied for these interim condensed consolidated financial statements are consistent

with those described on pages 300 to 311 of the Annual Report and Accounts 2025 on Form 20-F, as are the methods of computation.

(g)Presentation of information

Certain disclosures have been presented elsewhere in this Form 6-K, rather than in the notes to the financial statements. These are as follows:

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

commitments and financial guarantees included in the ‘Risk’ section on pages 58 to 60.

–Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation included

in the ‘Risk’ section on page 61.