v3.26.1
Provisions
6 Months Ended
Jun. 30, 2026
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]  
Provisions
11
Provisions
Restructuring
costs
Legal proceedings
and regulatory matters
Customer
remediation
Other
provisions
Total
$m
$m
$m
$m
$m
Provisions (excluding contractual commitments)
At 1 Jan 2026
578
1,662
69
497
2,806
Additions
198
69
47
57
371
Amounts utilised
(254)
(440)
(15)
(94)
(803)
Unused amounts reversed
(52)
(13)
(6)
(36)
(107)
Exchange and other movements
16
(1)
(6)
9
At 30 Jun 2026
486
1,277
95
418
2,276
Contractual commitments1
At 1 Jan 2026
635
Net change in expected credit loss provision and other movements
31
At 30 Jun 2026
666
Total provisions
At 31 Dec 2025
3,441
At 30 Jun 2026
2,942
1Contractual commitments include the expected credit loss provision in relation to off-balance sheet financial guarantee contracts and commitments to which the
impairment requirements in IFRS 9 are applied; and provisions for performance and other guarantee contracts.
Further details of ‘Legal proceedings and regulatory matters’ are set out in Note 13. Legal proceedings include civil court, arbitration or tribunal
proceedings brought against HSBC companies (whether by way of claim or counterclaim); or civil disputes that may, if not settled, result in court,
arbitration or tribunal proceedings. ‘Regulatory matters’ refers to investigations, reviews and other actions carried out by, or in response to, the
actions of regulators or law enforcement agencies in connection with alleged wrongdoing by HSBC.
Customer remediation refers to HSBC’s activities to compensate customers for losses or damages associated with a failure to comply with
regulations or to treat customers fairly. Customer remediation is often initiated by HSBC in response to customer complaints and/or industry
developments in sales practices, and is not necessarily initiated by regulatory action.
For further details of the impact of IFRS 9 on undrawn loan commitments and financial guarantees, presented in ‘Contractual commitments’, see
Note 12. Further analysis of the movement in the ECL provision is disclosed within the ‘Reconciliation of changes in gross carrying/nominal amount
and allowances for loans and advances to banks and customers including loan commitments and financial guarantees‘ table on pages 58 to 59.