Segmental analysis

The Group Operating Committee is considered to be the Chief Operating Decision Maker (‘CODM’) for the purposes of identifying the Group‘s

reportable segments. Business segments results are assessed by the CODM on the basis of constant currency performance that removes the

effects of currency translation from reported results. Therefore, we disclose these results on a constant currency basis as required by IFRS

Accounting Standards. The income statement for the half-year to 30 June 2025 is converted at the average rate of exchange for 2026, and the

balance sheets at 30 June 2025 and 31 December 2025 at the prevailing rates of exchange on 30 June 2026.

Our operations are closely integrated and, accordingly, the presentation of data includes internal allocations of certain items of income and expense.

These allocations include the costs of certain support services and global infrastructures to the extent that they can be meaningfully attributed to

business segments. While such allocations have been made on a systematic and consistent basis, they necessarily involve a degree of subjectivity.

Costs that are not allocated to business segments are included in Corporate Centre.

Where relevant, income and expense amounts presented include the results of inter-segment funding along with inter-company and inter-business

line transactions. All such transactions are undertaken on arm’s length terms. Measurement of segmental assets, liabilities, income and expenses

is in accordance with the Group’s accounting policies. Shared costs are included in segments on the basis of actual recharges. The intra-Group

elimination items for the business segments are presented in Corporate Centre.

Our business segments

The Group’s reportable segments under IFRS 8 ‘Operating Segments’ comprise the following four businesses along with Corporate Centre:

–Hong Kong: The Hong Kong business comprises Retail Banking and Wealth and Commercial Banking of HSBC Hong Kong and Hang Seng Bank.

–UK: The UK business comprises UK Retail Banking and Wealth (including first direct and M&S Bank) and UK Commercial Banking including

HSBC Innovation Bank.

–Corporate and Institutional Banking (‘CIB’): CIB is formed from the integration of our Commercial Banking business (outside the UK and Hong

Kong) with our Global Banking and Markets business.

–International Wealth and Premier Banking (‘IWPB’): IWPB comprises Premier banking outside of Hong Kong and the UK, our Private Bank, and

our wealth manufacturing businesses of Asset Management and Insurance.

Effective 1 January 2026, we transferred certain clients, primarily in Hong Kong and the UK, to the CIB segment to better meet their needs. This

transfer does not change the Group’s reportable segments. Comparative periods have been re-presented accordingly. The re-presentation has

no impact on the Group’s consolidated financial results or financial position.


HSBC constant currency profit before tax and balance sheet data
	Half-year to 30 Jun 2026
	Hong Kong	UK	CIB	IWPB	Corporate Centre	Total
	$m	$m	$m	$m	$m	$m
Net operating income/(expense) before change in expected credit losses and other credit impairment charges	8,132	6,530	15,609	7,739	(268)	37,742
– external	5,179	7,066	20,942	7,086	(2,531)	37,742
– inter-segment	2,953	(536)	(5,333)	653	2,263	—
– of which: net interest income/(expense)1	5,975	5,682	8,023	3,585	(5,032)	18,233
Change in expected credit losses and other credit impairment charges	(540)	(505)	(894)	(413)	(1)	(2,353)
Net operating income/(expense)	7,592	6,025	14,715	7,326	(269)	35,389
Total operating expenses	(2,454)	(2,693)	(7,465)	(4,727)	(87)	(17,426)
Operating profit/(loss)	5,138	3,332	7,250	2,599	(356)	17,963
Share of profit in associates and joint ventures less impairment	—	—	—	17	1,542	1,559
Constant currency profit/(loss) before tax	5,138	3,332	7,250	2,616	1,186	19,522
	%	%	%	%	%	%
Share of HSBC’s constant currency profit/(loss) before tax	26.3	17.1	37.1	13.4	6.1	100.0
Constant currency cost efficiency ratio	30.2	41.2	47.8	61.1	(32.5)	46.2

Constant currency balance sheet data	$m	$m	$m	$m	$m	$m
Loans and advances to customers (net)	230,495	306,175	331,512	153,763	160	1,022,105
Interests in associates and joint ventures	—	—	82	512	30,739	31,333
Total external assets	450,796	449,769	1,970,104	439,388	128,104	3,438,161
Customer accounts	536,808	348,342	669,711	272,646	196	1,827,703


	Half-year to 30 Jun 2025
Net operating income before change in expected credit losses and other credit impairment charges2	7,666	6,241	14,819	7,284	(1,198)	34,812
– external	4,865	6,772	20,356	6,226	(3,407)	34,812
– inter-segment	2,801	(531)	(5,537)	1,058	2,209	—
– of which: net interest income/(expense)1	5,724	5,353	7,458	3,848	(5,140)	17,243
Change in expected credit losses and other credit impairment charges	(857)	(340)	(313)	(503)	(2)	(2,015)
Net operating income	6,809	5,901	14,506	6,781	(1,200)	32,797
Total operating expenses	(2,298)	(2,672)	(7,701)	(4,647)	(133)	(17,451)
Operating profit	4,511	3,229	6,805	2,134	(1,333)	15,346
Share of profit in associates and joint ventures2	—	—	—	2	653	655
Constant currency profit before tax	4,511	3,229	6,805	2,136	(680)	16,001
	%	%	%	%	%	%
Share of HSBC’s constant currency profit before tax	28.2	20.2	42.5	13.3	(4.2)	100.0
Constant currency cost efficiency ratio	30.0	42.8	52.0	63.8	(11.1)	50.1

Constant currency balance sheet data	$m	$m	$m	$m	$m	$m
Loans and advances to customers (net)	225,442	286,036	311,033	148,341	187	971,039
Interests in associates and joint ventures	—	—	107	511	28,431	29,049
Total external assets	425,910	417,723	1,752,248	435,501	144,600	3,175,982
Customer accounts	508,730	336,506	577,443	274,578	342	1,697,599

1Net interest expense recognised in Corporate Centre includes 1H26: $4.8bn (1H25: $4.7bn) of interest expense in relation to the internal cost to fund trading and

fair value net assets; and the funding cost of foreign exchange swaps in our Markets Treasury function.

2The amount in 1H25 includes a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in BoCom. We also recognised a

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

ventures less impairment’.

Reported external net operating income is attributed to countries and territories on the basis of the location of the branch responsible for reporting

the results or advancing the funds:


	Half-year to
	30 Jun 2026	30 Jun 2025
	$m	$m
Reported external net operating income by country/territory	37,742	34,122
– UK1	7,922	6,270
– Hong Kong	12,343	11,490
– US	2,599	2,313
– Chinese mainland	1,311	67
– other countries/territories	13,567	13,982

1UK comprises our ring-fenced bank, HSBC UK Bank plc, our UK non-ring-fenced bank in HSBC Bank plc, HSBC Holdings plc and the Group’s UK-based service

companies.


Constant currency results reconciliation
	30 Jun 2026	30 Jun 2025
	Reported and constant currency	Constant currency	Currency translation	Reported
	$m	$m	$m	$m
Revenue	37,742	34,812	690	34,122
ECL	(2,353)	(2,015)	(74)	(1,941)
Operating expenses	(17,426)	(17,451)	(429)	(17,022)
Share of profit in associates and joint ventures less impairment	1,559	655	4	651
Profit before tax	19,522	16,001	191	15,810


Constant currency balance sheet reconciliation
	At 30 Jun 2026	At 30 Jun 2025			At 31 Dec 2025
	Reported and constant currency	Constant currency	Currency translation	Reported	Constant currency	Currency translation	Reported
	$m	$m	$m	$m	$m	$m	$m
Loans and advances to customers (net)	1,022,105	971,039	(10,683)	981,722	981,950	(6,449)	988,399
Interests in associates and joint ventures	31,333	29,049	847	28,202	30,026	449	29,577
Total external assets	3,438,161	3,175,982	(38,389)	3,214,371	3,206,415	(26,619)	3,233,034
Customer accounts	1,827,703	1,697,599	(21,005)	1,718,604	1,771,972	(14,856)	1,786,828


Notable items
	Half-year to
	30 Jun 2026	30 Jun 2025
	$m	$m
Revenue
Disposals, wind-downs, acquisitions and related costs1	(426)	(139)
Dilution loss of interest in BoCom associate2	—	(1,136)
Operating expenses
Disposals, wind-downs, acquisitions and related costs	(129)	(227)
Restructuring and other related costs3	(318)	(616)
Impairment loss of interest in BoCom associate2	—	(1,000)

1The amount in 1H26 includes $0.2bn from the recycling of foreign currency translation reserve losses arising on completion of the sale of our UK life insurance

business, HSBC Life (UK) Limited, and $0.3bn of disposal losses recognised upon the ‘held for sale‘ classification of HSBC Continental Europe’s shareholding in

HSBC Bank Malta p.l.c. 1H25 includes $0.1bn fair value losses on ADRs in Galicia received as a part of the sale consideration for HSBC Argentina, which were

2The amount in 1H25 includes a loss of $1.1bn inclusive of reserves recycling as a result of the dilution of our shareholding in BoCom. We also recognised a

$1.0bn impairment loss following an impairment test on the carrying value of the Group’s investment in BoCom in ‘Impairment loss of interest in BoCom

3Amounts relate to organisational simplification provisions recognised in 2026 and 2025.