# Pillar 3 Disclosures at 30 June 2025

## Contents

| Page | Table | Table heading | Page ref | Table reference | Activity |
|---|---|---|---|---|---|
| 2 | | Disclosures and governance | 35 | 30 | Credit risk mitigation techniques - overview (CR3) |
| 3 | | Highlights | 36 | 30.i | Analysis of accounting lines comprising total exposures in CR3 |
| 3 | | Key metrics | 36 | 31 | Standardised approach - credit conversion factor ('CCF') and credit risk mitigation ('CRM') effects (CR4) |
| 4 | | Regulatory developments | 37 | 32 | IRB - Effect on the RWA of credit derivatives used as CRM techniques (CR7) |
| 5 | | Key change | 38 | 33 | IRB approach - Disclosure of the extent of the use of CRM techniques (CR7-A) |
| 6 | | Linkage to the Interim Report 2025 | 40 | 34 | Standardised approach - exposures by asset classes and risk weights (CR5) |
| 8 | | Treasury risk management | 41 | 35 | IRB - Credit risk exposures by portfolio and PD range (CR6) |
| 9 | | Own funds | 54 | 36 | Specialised lending and equity exposures under the simple risk-weight approach (CR10) |
| 11 | | Capital buffers | 55 | 36.i | Equity exposures under simple risk-weighted approach (CR10) |
| 11 | | Pillar 1 minimum capital requirements and RWA flow | 56 | 37 | Analysis of counterparty credit risk exposure by approach (excluding centrally cleared exposures) (CCR1) |
| 12 | | Risk-weighted assets | 57 | 38 | Credit valuation adjustment capital charge (CCR2) |
| 15 | | Leverage | 57 | 39 | Standardised approach - CCR exposures by regulatory exposure class and risk weights (CCR3) |
| 17 | | Liquidity | 58 | 40 | IRB - CCR exposures by portfolio and PD scale (CCR4) |
| 23 | | Minimum requirement for own funds and eligible liabilities | 59 | 41 | Composition of collateral for CCR exposure (CCR5) |
| 30 | | Credit risk | 60 | 42 | Credit derivatives exposures (CCR6) |
| 30 | | Credit quality of assets | 60 | 43 | Exposures to central counterparties (CCR8) |
| 32 | | Non-performing and forborne exposures | 61 | 44 | Securitisation exposures in the non-trading book (SEC1) |
| 33 | | Concentration risk | 63 | 45 | Securitisation exposures in the trading book (SEC2) |
| 35 | | Risk mitigation | 64 | 46 | Securitisation exposures in the non-trading book and associated regulatory capital requirements - bank acting as originator or as sponsor (SEC3) |
| 36 | | Counterparty credit risk | 65 | 47.i | Securitisation exposures in the non-trading book and associated capital requirements - bank acting as investor (SEC4) |
| 56 | | Securitisation | 65 | 47.ii | Securitisation exposures in the trading book and associated capital requirements - bank acting as investor (SEC4) |
| 61 | | Market risk | 66 | 48 | Exposures securitised by the institution - Institution acts as originator or as sponsor (SEC5) |
| 63 | | Abbreviations | 67 | 49 | Market risk under standardised approach (MR1) |
| 72 | | Cautionary statement regarding forward-looking statements | 67 | 50 | Market risk under IMA (MR2-A) |
| 75 | | Contacts | 68 | 51 | IMA values for trading portfolios (MR3) |
| | | | 69 | 52 | Comparison of VaR estimates with gains/losses (MR4) |
| | | | 70 | 53 | Geographical distribution of credit exposures relevant for the calculation of the countercyclical buffer (UK CCyB1) |
| | | | 71 | 54 | Amount of institution-specific countercyclical capital buffer (UK CCyB2) |

## Certain defined terms

Unless the context requires otherwise, 'HSBC Holdings' means HSBC Holdings plc and 'HSBC', the 'Group', 'we', 'us' and 'our' refer to HSBC Holdings together with its subsidiaries. Within this document the Hong Kong Special Administrative Region of the People's Republic of China is referred to as 'Hong Kong'. When used in the terms 'shareholders' equity' and 'total shareholders' equity', shareholders' means holders of HSBC Holdings ordinary shares and those preference shares and capital securities issued by HSBC Holdings classified as equity. The abbreviations '\$m', '\$bn' and '\$tn' represent millions, billions (thousands of millions) and trillions (millions of millions) of US dollars, respectively.

This document should be read in conjunction with the Interim Report 2025, which has been published on our website at www.hsbc.com/investors.

# Disclosures and Governance

## Regulatory framework for disclosure

Our Pillar 3 Disclosures at 30 June 2025 comprise both quantitative and qualitative information required under Pillar 3. These disclosures are made in accordance with the Prudential Regulation Authority ('PRA') Rulebook Disclosure (Capital Requirements Regulation). They are supplemented by specific additional requirements of the PRA and discretionary disclosures on our part.

We are supervised on a consolidated basis in the United Kingdom ('UK') by the PRA, which receives information on the capital and liquidity adequacy of, and sets capital and liquidity requirements for, the Group as a whole. Individual banking subsidiaries are directly regulated by their local banking supervisors, who set and monitor their local capital and liquidity adequacy requirements. In most jurisdictions, non-banking financial subsidiaries are also subject to the supervision and capital and liquidity requirements of local regulatory authorities.

The Basel Committee on Banking Supervision ('Basel') III framework is structured around three 'pillars', with the Pillar 1 minimum capital requirements and the Pillar 2 supervisory review process complemented by the Pillar 3 market discipline. The aim of Pillar 3 is to produce disclosures that allow market participants to assess the scope of application by banks of the Basel framework and the rules in their jurisdiction, their capital resources, risk exposures and risk management processes, and hence their capital adequacy.

At the consolidated Group level, capital is calculated for prudential regulatory purposes using the Basel III framework as implemented in the UK. Any references to European Union ('EU') regulations and directives (including technical standards) should, as applicable, be read as references to the UK's version of such regulation and/or directive, as onshored into UK law under the European Union (Withdrawal) Act 2018, and may be subsequently amended under UK law. We refer to the regulatory requirements of the Capital Requirements Regulation and Directive, the CRR II regulation and the PRA Rulebook as 'CRR II'.

The regulators of the Group's banking entities outside the UK are at varying stages of implementation of Basel's framework, so local regulation may have been on the basis of Basel I, II, III or Basel 3.1. Further details on our implementations can be found on page 5 within the regulatory developments section.

While the frameworks may vary for some of our banking subsidiaries, they do not impact the Group's disclosure requirements. However, the changes to local regulatory frameworks may impact distributions from our subsidiaries and our minimum requirement for own funds and eligible liabilities ('MREL') requirements.

We publish our Pillar 3 Disclosures quarterly on our website www.hsbc.com/investors.

## Regulatory reporting processes and controls

We have advanced our comprehensive initiative aimed at strengthening our global regulatory reporting processes and making them more sustainable, including enhancements to data, consistency and controls. While this programme continues, there may be further impacts on some of our regulatory ratios as we implement recommended changes and continue to enhance our controls across the process.

## Comparatives and references

To give insight into movements during 2025, we provide comparative figures, commentary on variances and flow tables for capital requirements. In all tables where the term 'capital requirements' is used, this represents the minimum total capital charge set at 8% of risk-weighted assets ('RWAs') by Article 92(1) of CRR II. Narratives are included to explain quantitative disclosures where necessary.

Where disclosures have been enhanced, or are new, we do not generally restate or provide comparatives. Wherever specific rows and columns in the tables prescribed are not applicable or are immaterial to our activities, we omit them and follow the same approach for comparatives.

In alignment with the PRA Rulebook table requirements, we have shaded cells where no information is required to be disclosed.

Pillar 3 requirements may be met by inclusion in other disclosure media. Where we adopt this approach, references are provided to the relevant pages of the Interim Report 2025 of HSBC Holdings plc or to other documents.

The table below references where disclosures have been enhanced.

| Page ref | Table Reference | Activity |
|---|---|---|
| 4, 6, 9, 24 and 26 | Table 1 - KM1/IFRS9-FL | Inclusion of accrued interest in Tier 2 and MREL instruments. |
| | Table 2 - UK CC2 | |
| | Table 3 UK CC1 | |
| | Table 14i - KM2 ERG | |
| | Table 15-TLAC1 | |
| 36, 40 and 57 | CR4, CR5 and CCR3 | Moved a portfolio from the internal ratings-based approach to the standardised approach. |
| 57 | Table 39 - CCR3 | Enhanced counterparty credit calculation process for pre-positioning of securities. |

## Governance

Our Pillar 3 Disclosures are governed by the Group's regulatory reporting policy and associated internal controls framework. This document has been approved by the Group Disclosure Committee, chaired by the Group Chief Financial Officer, as delegated by the Group Audit Committee.

# Highlights

## CET1 capital and ratio

Our common equity tier 1 ('CET1') capital was \$129.8bn and our ratio was 14.6%, down 0.3 percentage points compared with 31 December 2024, driven by an increase in risk-weighted assets ('RWAs'), partly offset by an increase in CET1 capital through profit generation net of distributions. The increase in RWAs was mainly driven by foreign currency translation differences and asset size movements.

The Board has approved a second interim dividend of \$0.10 per share. We have now announced with our 2Q25 results a share buy-back of up to \$3bn, which we expect to complete by our third quarter 2025 results announcement, and which is expected to reduce the CET1 ratio by around 0.4 percentage points including the impact of thresholds.

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.

### CET1 capital and ratio

| Date | CET1 Capital (\$bn) | CET1 Ratio (%) |
|---|---|---|
| 30 Jun 24 | 125.3 | 15.0% |
| 30 Sep 24 | 131.4 | 15.2% |
| 31 Dec 24 | 124.9 | 14.9% |
| 31 Mar 25 | 125.5 | 14.7% |
| 30 Jun 25 | 129.8 | 14.6% |

### CET1 ratio movement

```mermaid
bar chart
    title CET1 ratio movement
    section CET1 2025
        CET1 2025: 14.6%
    section CET1 Regulatory Profit
        CET1 Regulatory Profit: 1.8
    section Share buy-back
        Share buy-back: (0.9)
    section Change in RWAS
        Change in RWAS: (0.6)
    section FX translation differences
        FX translation differences: (0.4)
    section Other
        Other: (0.2)
    section Dividend
        Dividend: (0.1)
```
$^1$ Regulatory profits exclude the impact of the BoCom dilution and impairment, and the impact of strategic initiatives.

## RWAs

Our RWAs were \$886.9bn, an increase of \$48.6bn compared with 31 December 2024, primarily due to foreign currency translation differences of \$28.7bn, asset size movements of \$16.3bn, principally from our Corporate and Institutional Banking ('CIB') and UK business segments, and \$5.2bn of asset quality movements in our Hong Kong, CIB and UK business segments.

### RWAs by risk type

| Risk-weighted assets | 30 Jun 2025 (\$bn) | 31 Dec 2024 (\$bn) |
|---|---|---|
| Credit risk | 703.6 | 657.9 |
| Counterparty credit risk | 41.4 | 37.7 |
| Market risk | 32.5 | 36.2 |
| Operational risk | 109.4 | 106.5 |
| Total RWAS | 886.9 | 838.3 |

## Leverage

Our leverage ratio was 5.4%, down from 5.6% at 31 December 2024. The increase in the leverage exposures led to a 0.4 percentage points fall in the leverage ratio, primarily due to growth in the balance sheet and the impact of foreign currency translation differences, which was partly offset by a 0.2 percentage points increase due to a rise in tier 1 capital mainly by foreign currency translation differences.

### Leverage

| Metric | 30 Jun 2025 (%) | 31 Dec 2024 (%) |
|---|---|---|
| Leverage ratio (%) | 5.4 | 5.6 |

## Liquidity

The Group liquidity coverage ratio ('LCR') was 140% or \$193bn at 30 June 2025 and 138% or \$179bn at 31 December 2024, above the regulatory requirement. The average high-quality liquid assets ('HQLA') were \$678bn at 30 June 2025 and \$649bn at 31 December 2024.

The Group net stable funding ratio ('NSFR') was 145% at 30 June 2025 and 143% at 31 December 2024. At 30 June 2025, all material operating entities were above regulatory minimum levels.

### Liquidity

| Metric | 30 Jun 2025 | 31 Dec 2024 |
|---|---|---|
| LCR (%) | 140 | 138 |
| NSFR (%) | 145 | 143 |

# Key metrics

The table below sets out the key regulatory metrics covering the Group's available capital (including buffer requirements and ratios), RWAs, Leverage ratio, LCR and NSFR. Effective 1 January 2025, the IFRS 9 transitional arrangements came to an end, followed by the end of the CRR II grandfathering provisions on 28 June 2025. Accordingly, our current period numbers are the same on both the transitional and end-point basis. The leverage ratio is calculated using the CRR II end-point basis for capital. The calculation for LCR is the average of the preceding 12 months for each quarter and NSFR is the average of the preceding four quarters.

Table 1: Key metrics¹ (KM1/IFRS9-FL)

| | | **At 30 Jun 2025** | **31 Mar 2025** | **31 Dec 2024** | **30 Sep 2024** | **30 Jun 2024** |
|---|---|---|---|---|---|---|
| **Available capital (\$bn)** | | | | | | |
| 1 | Common equity tier 1 ('CET1') capital | 129.8 | 125.5 | 124.9 | 131.4 | 125.3 |
| 2 | CET1 capital as if IFRS 9 transitional arrangements had not been applied | 129.8 | 125.5 | 124.9 | 131.4 | 125.3 |
| | Tier 1 capital | 150.6 | 144.3 | 144.1 | 150.6 | 144.3 |
| 3 | Tier 1 capital as if IFRS 9 transitional arrangements had not been applied | 150.6 | 144.3 | 144.1 | 150.6 | 144.3 |
| | Total capital | 178.5 | 169.8 | 172.4 | 179.8 | 172.1 |
| | Total capital as if IFRS 9 transitional arrangements had not been applied | 178.5 | 169.8 | 172.4 | 179.8 | 172.1 |
| **Risk-weighted assets (\$bn)** | | | | | | |
| 4 | Total RWAs | 886.9 | 853.3 | 838.3 | 863.9 | 835.1 |
| | Total RWAs as if IFRS 9 transitional arrangements had not been applied | 886.9 | 853.3 | 838.2 | 863.9 | 835.1 |
| **Capital ratios (%)** | | | | | | |
| 5 | CET1 | 14.6 | 14.7 | 14.9 | 15.2 | 15.0 |
| | CET1 as if IFRS 9 transitional arrangements had not been applied | 14.6 | 14.7 | 14.9 | 15.2 | 15.0 |
| 6 | Tier 1 | 17.0 | 16.9 | 17.2 | 17.4 | 17.3 |
| | Tier 1 as if IFRS 9 transitional arrangements had not been applied | 17.0 | 16.9 | 17.2 | 17.4 | 17.3 |
| | Total capital | 20.1 | 19.9 | 20.6 | 20.8 | 20.6 |
| | Total capital as if IFRS 9 transitional arrangements had not been applied | 20.1 | 19.9 | 20.6 | 20.8 | 20.6 |
| **Additional own funds requirements based on Supervisory Review and Evaluation Process ('SREP') as a percentage of RWAs (%)** | | | | | | |
| UK-7a | Additional CET1 SREP requirements | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 |
| UK-7b | Additional tier 1 ('AT1') SREP requirements | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| UK-7c | Additional tier 2 ('T2') SREP requirements | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 |
| UK-7d | Total SREP own funds requirements | 10.6 | 10.6 | 10.6 | 10.6 | 10.6 |
| **Combined buffer requirement as a percentage of RWAs (%)** | | | | | | |
| 8 | Capital conservation buffer requirement | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 |
| 9 | Institution-specific countercyclical capital buffer | 0.7 | 0.7 | 0.7 | 0.8 | 0.7 |
| 10 | Global systemically important institution buffer | 2.0 | 2.0 | 2.0 | 2.0 | 2.0 |
| 11 | Combined buffer requirement | 5.2 | 5.2 | 5.2 | 5.3 | 5.2 |
| UK-11a | Overall capital requirements | 15.8 | 15.8 | 15.8 | 15.9 | 15.8 |
| 12 | CET1 available after meeting the total SREP own funds requirements | 8.7 | 8.7 | 8.9 | 9.2 | 9.0 |
| **Leverage ratio** | | | | | | |
| 13 | Total exposure measure excluding claims on central banks (\$bn) | 2,792.9 | 2,652.0 | 2,571.1 | 2,657.8 | 2,514.5 |
| 14 | Leverage ratio excluding claims on central banks (%) | 5.4 | 5.4 | 5.6 | 5.7 | 5.7 |
| **Additional leverage ratio disclosure requirements** | | | | | | |
| 14a | Fully loaded expected credit losses ('ECL') accounting model leverage ratio excluding claims on central banks (%) | 5.4 | 5.4 | 5.6 | 5.7 | 5.7 |
| 14b | Leverage ratio including claims on central banks (%) | 4.8 | 4.8 | 4.9 | 5.0 | 5.0 |
| 14c | Average leverage ratio excluding claims on central banks (%) | 5.4 | 5.5 | 5.5 | 5.7 | 5.7 |
| 14d | Average leverage ratio including claims on central banks (%) | 4.8 | 4.8 | 4.9 | 5.0 | 5.0 |
| 14e | Countercyclical leverage ratio buffer (%) | 0.2 | 0.2 | 0.2 | 0.3 | 0.3 |
| EU-14d | Leverage ratio buffer requirement (%) | 0.9 | 0.9 | 0.9 | 1.0 | 1.0 |
| EU-14e | Overall leverage ratio requirements (%) | 4.2 | 4.2 | 4.2 | 4.3 | 4.3 |
| **Liquidity coverage ratio ('LCR') (\$bn)²** | | | | | | |
| 15 | Total high-quality liquid assets | 678.1 | 660.7 | 649.2 | 649.2 | 646.1 |
| UK-16a | Cash outflows - total weighted value | 669.4 | 657.3 | 656.3 | 657.9 | 660.1 |
| UK-16b | Cash inflows - total weighted value | 183.9 | 182.1 | 185.6 | 184.9 | 187.8 |
| 16 | Total net cash outflow | 485.5 | 475.2 | 470.7 | 473.0 | 472.3 |
| 17 | LCR (%) | 140 | 139 | 138 | 137 | 137 |
| **Net stable funding ratio ('NSFR') (\$bn)²** | | | | | | |
| 18 | Total available stable funding | 1,572.1 | 1,539.8 | 1,523.4 | 1,538.7 | 1,544.1 |
| 19 | Total required stable funding | 1,082.7 | 1,056.7 | 1,064.5 | 1,092.7 | 1,115.1 |
| 20 | NSFR (%) | 145 | 146 | 143 | 141 | 138 |

$^1$ From 30 June 2025, the regulatory valuation of Tier 2 capital increased by \$0.5bn due to the inclusion of the associated accrued interest. Comparatives have not been restated.
$^2$ We enhanced our liquidity consolidation process in 2Q24 by revising provisions that addressed historical limitations. As our Group LCR and NSFR are reported on an average basis, at 2Q25 the benefit of these changes incrementally increased our LCR and NSFR by circa 5% and 10%, respectively. Compared with 30 June 2024, the increase in LCR and NSFR was mainly driven by these enhancements.

## Regulatory developments

### UK Growth Strategy

In July 2025, the UK Government published its 10-year Financial Services Growth and Competitiveness Strategy, which aims to make the UK the global location for financial services firms to invest, innovate and grow. In support of this, HM Treasury, the Bank of England ('BoE'), the PRA and Financial Conduct Authority ('FCA') released a number of publications, which include:

*   **Basel 3.1:** The overall timeline for the implementation of Basel 3.1 in the UK was reconfirmed as 1 January 2027 for the credit risk, operational risk, credit valuation adjustment, and the non-modelled market risk elements; however, a further one-year delay was proposed for the internal model approach for market risk until 1 January 2028, together with limited amendments to the framework. At the same time, HM Treasury issued a consultation proposing a new overseas recognition regime to replace the equivalence regime onshored following the UK's departure from the EU, together with possible changes to approaches for non-UK covered bonds, exchanges and investment firms, and changes to key definitions within the prudential rules.
*   **Liquidity:** The PRA issued a formal statement that firms should not alter their treatment of non-UK covered bonds as Level 2 HQLA. This treatment includes both existing holdings and new issuances.
*   **Capital Resources:** The BoE published a policy statement on its approach to setting Minimum Requirement for Own Funds and Eligible Liabilities ('MREL') and a revised MREL Statement of Policy, effective from 1 January 2026. This consolidates the rules regarding MREL and the resolution framework and was accompanied by reporting and disclosure consultations.

In addition, in July 2025, the Financial Policy Committee committed to a review of the bank capital levels needed to support UK financial stability, an update on which will be provided in December.

### Pillar 2A Review

In July 2025, the PRA published the first phase of a two-stage review of the Pillar 2A capital framework, addressing the consequential impacts of the near-final Basel 3.1 rules. In particular, there are proposals for add-ons for domestic currency sovereign exposures attracting a preferential 0% in Pillar 1 and for retail unconditionally cancellable commitments ('UCCs') with credit conversion factors of less than 20%. The PRA is also considering proposals for wholesale UCCs, following a data request to be delivered in 1Q26.

In May 2025, the PRA published near-final rules on small and medium-sized enterprise ('SME') and infrastructure lending adjustments to Pillar 2A to mitigate the removal of the supporting factors under Basel 3.1.

### Environmental, social and governance ('ESG') risk

Globally, regulators and standard setters continue to publish multiple proposals and discussion papers on ESG topics, including enhancements to existing frameworks.

In June 2025, Basel published a voluntary framework for banks to disclose climate-related financial risks following consultation in November 2023 on Pillar 3 climate-related disclosures.

In June 2025, the UK Government published a package of consultations including sustainability reporting, assurance of sustainability reporting and transition planning. The proposed UK sustainability reporting standards ('UK SRS') are based on the International Sustainability Standards Board ('ISSB') global baseline sustainability disclosure standards with some amendments for application of the global standards in a UK context. Once finalised, the UK endorsed ISSB standards will be followed by consultations by the FCA and the UK Government separately, on mandatory adoption of the UK SRS for listed companies and other UK entities.

In April 2025, the PRA published consultation paper 10/25 ('CP10/25') that enhances the approaches to managing climate-related risks and reflects the work of international standard-setters such as Basel and the ISSB. The draft supervisory statement published alongside CP10/25 will replace the PRA's supervisory statement on enhancing banks and insurers' approaches to managing the financial risks from climate change ('SS3/19').

### Basel 3.1

We continue to assess the impact of the near final Basel 3.1 standards on our capital and the associated implementation challenges (including data provision). We expect that the impact on our CET1 ratio at 1 January 2027 will be a modest benefit.

## Key change

In the first half of 2025, the below event has impacted our capital and liquidity adequacy.

### Retained portfolio for 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 (\$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 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 points reduction in the Group's CET1 ratio and no material impact on the Group's leverage ratio.

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.

$\blacktriangleright$ For further details of disposal groups and business acquisitions, see page 2 and Note 15 on page 100 of the Interim Report 2025.

# Linkage to the Interim Report 2025

This section demonstrates the links between the Group's financial balance sheet and its regulatory counterpart.

## Structure of the regulatory group

The regulatory consolidation is consistent with the accounting consolidation, with the following exceptions:

*   the subsidiaries engaged in insurance activities are equity accounted in the regulatory consolidation and then deducted from CET1 capital, subject to thresholds;
*   the special purpose entities ('SPEs') are excluded where significant risk has been transferred to third parties. Exposures to these SPEs are risk weighted as securitisation positions for regulatory purposes;
*   the participating interests in banking associates are proportionally consolidated for regulatory purposes by including our share of assets, liabilities, profits and losses, and RWAs in accordance with the PRA's regulatory requirements; and
*   non-participating significant investments are deducted from capital, subject to thresholds.

$\blacktriangleright$ For further details of the differences between the accounting and regulatory scope of consolidation and their definition of exposure, see pages 9 to 12 of the Pillar 3 Disclosures at 31 December 2024.

The table below presents the reconciliation between the Group's financial balance sheet and the regulatory scope of consolidation. The regulatory balance sheet value cannot be directly reconciled to other tables showing exposure under the regulatory scope of consolidation as the basis of measurement used in the calculation of RWAs differs.

Table 2: Reconciliation of regulatory own funds to balance sheet in the financial statements (UK CC2)

| Assets | Ref $\dagger$ | Accounting balance sheet \$m | Deconsolidation of insurance/ other entities \$m | Consolidation of banking associates \$m | Equity accounting of Insurance subsidiaries \$m | Regulatory balance sheet \$m |
|---|---|---|---|---|---|---|
| Cash and balances at central banks | | 246,360 | (17) | 356 | | 246,699 |
| Items in the course of collection from other banks | | 7,252 | | | | 7,252 |
| Hong Kong Government certificates of indebtedness | | 42,592 | | | | 42,592 |
| Trading assets | | 333,745 | | | | 333,745 |
| Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | | 128,942 | (115,231) | 1,025 | | 14,736 |
| of which: debt securities eligible as tier 2 issued by Group Financial Sector Entities ('FSEs') that are outside the regulatory scope of consolidation | | 137 | | | | 137 |
| Derivatives | p | 249,672 | 51 | 180 | | 249,903 |
| Loans and advances to banks | | 107,582 | (694) | 1,551 | | 108,439 |
| Loans and advances to customers | | 981,722 | 217 | 23,099 | | 1,005,038 |
| of which: lending eligible as Tier 2 to Group FSEs outside the regulatory scope of consolidation | p | | | 530 | | 530 |
| of which: expected credit losses on IRB portfolios | h | (7,447) | | | | (7,447) |
| Reverse repurchase agreements - non-trading | | 283,204 | 1,002 | 32 | | 284,238 |
| Financial investments | | 547,955 | (6,641) | 8,463 | | 549,777 |
| of which: lending eligible as Tier 2 to Group FSEs outside the regulatory scope of consolidation | p | | | 587 | | 587 |
| Assets held for sale | e | 38,978 | (27,860) | 13 | | 11,131 |
| of which: goodwill and intangible assets | e | 5 | - | - | | 5 |
| of which: expected credit losses on IRB portfolios | h | (3) | | | | (3) |
| Capital invested in insurance and other entities | e | | 3,812 | 4,012 | | 7,824 |
| of which -positive goodwill on acquisition | e | 236 | | | | 236 |
| Prepayments, accrued income and other assets | p | 197,118 | (7,998) | 925 | | 190,045 |
| of which: retirement benefit assets | j | 7,959 | | | | 7,959 |
| Current tax assets | | 1,364 | (25) | | | 1,339 |
| Interests in associates and joint ventures | | 28,202 | (465) | (6,333) | | 21,404 |
| of which: positive goodwill on acquisition | e | 471 | | | | 460 |
| Goodwill and intangible assets | e | 13,022 | (11) | (481) | 892 | | 13,433 |
| Deferred tax assets | f | 6,661 | (1,729) | 55 | | 4,987 |
| **Total assets at 30 Jun 2025** | | **3,214,371** | **(156,059)** | **30,258** | **4,012** | **3,092,582** |

Table 2: Reconciliation of regulatory own funds to balance sheet in the financial statements (UK CC2) (continued)

| Liabilities and equity | Ref $\dagger$ | Accounting balance sheet \$m | Deconsolidation of insurance/ other entities \$m | Consolidation of banking associates \$m | Equity accounting of Insurance subsidiaries \$m | Regulatory balance sheet \$m |
|---|---|---|---|---|---|---|
| Hong Kong currency notes in circulation | | 42,592 | | | | 42,592 |
| Deposits by banks | | 97,782 | 5 | | | 99,600 |
| Customer accounts | | 1,718,604 | 5,228 | 24,007 | 1,813 | 1,747,839 |
| Repurchase agreements - non-trading | | 195,532 | (545) | 1,636 | | 196,623 |
| Items in course of transmission to other banks | | 8,200 | | | | 8,200 |
| Trading liabilities | | 70,653 | | (5,874) | | 70,653 |
| Financial liabilities designated at fair value | | 163,589 | | (5,874) | | 157,715 |
| of which: included in tier 2 | n, o, i | 10,256 | | | | 10,256 |
| Derivatives | k | 257,601 | 82 | 173 | | 257,856 |
| of which: debit valuation adjustment | k | (23) | | | | (23) |
| Debt securities in issue | | 102,129 | (1,204) | | | 100,925 |
| Liabilities of disposals group held for sale | | 46,165 | (26,857) | 13 | | 19,321 |
| Accruals, deferred income and other liabilities | n,o | 158,862 | (4,090) | 2,083 | | 156,855 |
| Current tax liabilities | | 3,232 | (896) | 55 | | 2,391 |
| Insurance contract liabilities | | 118,297 | (118,297) | | | |
| Provisions | | 2,125 | (14) | 101 | | 2,212 |
| of which: credit-related contingent liabilities and contractual commitments on IRB portfolios | h | 494 | | | | 494 |
| Deferred tax liabilities | | 1,570 | 7 | | | 1,577 |
| Subordinated liabilities | | 27,569 | | 419 | | 27,988 |
| of which: included in tier 2 | n, o | 22,550 | | | | 22,550 |
| **Total liabilities at 30 Jun 2025** | | **3,014,502** | **(152,455)** | **30,300** | | **2,892,347** |
| **Equity** | | | | | | |
| Called up share capital | a | 8,739 | | | | 8,739 |
| Share premium account | a | 14,918 | | | | 14,918 |
| Other equity instruments | | 20,716 | | | | 20,716 |
| Other reserves | b,c,g | (1,556) | 2,154 | (83) | 5,574 | 6,089 |
| Retained earnings | b,c,i | 149,737 | (5,559) | 83 | (1,562) | 142,699 |
| Non-controlling interests | d,m,o | 192,554 | (3,405) | 4,012 | | 193,161 |
| Total shareholders' equity | | 7,315 | (199) | (42) | | 7,074 |
| **Total equity at 30 Jun 2025** | | **199,869** | **(3,604)** | **(42)** | **4,012** | **200,235** |
| **Total liabilities and equity at 30 Jun 2025** | | **3,214,371** | **(156,059)** | **30,258** | **4,012** | **3,092,582** |

$\dagger$ The references (a)-(p) identify balance sheet components that are used in the calculation of regulatory capital in Table 3: Composition of regulatory own funds¹ (UK CC1)'. This table shows such items at their accounting values, which may be subject to analysis or adjustment in the calculation of regulatory capital shown in Table 3.

# Risk Management

We recognise that the primary role of risk management is to help protect our customers, business, colleagues, shareholders and the communities that we serve, while ensuring we are able to support our strategy and provide sustainable growth.

All our people are responsible for the management of risk, with the ultimate accountability residing with the Board. Our Group Risk and Compliance function, led by the Group Chief Risk and Compliance Officer, plays an important role in reinforcing our culture and values. We are focused on creating an environment that encourages our people to speak up and do the right thing.

Group Risk and Compliance is independent from our businesses, including our sales and trading functions, to provide challenge, oversight and appropriate balance in risk/return decisions.

We aim to use a comprehensive risk management approach across the organisation and across all risk types, underpinned by our culture and values. This is outlined in our risk management framework, including the key principles and practices that we employ in managing material risks. The framework fosters continuous monitoring, promotes risk awareness, and encourages sound operational and strategic decision making. It also supports a consistent approach to identifying, assessing, managing and reporting the risks we accept and incur in our activities. We continue to actively review and develop our risk management framework and enhance our approach to managing risk.

$\blacktriangleright$ A summary of our current policies and practices regarding the management of risk is set out in the 'Risk management' section on pages 127 to 130 of the Annual Report and Accounts 2024.

## Treasury Risk Management

Within the risk framework, treasury risk is the risk of having insufficient capital, liquidity or funding resources to meet financial obligations and satisfy regulatory requirements. This includes the risk of an adverse impact on earnings or capital due to structural and transactional foreign exchange exposures, as well as changes in market interest rates, together with pension risk and insurance risk.

The Global Head of Traded and Treasury Risk Management and Risk Analytics is the accountable risk steward for all treasury risks. The Group Treasurer is the risk owner for all treasury risks, with the exception of pension risk and insurance risk. The Group Treasurer co-owns pension risk with the Group Head of Performance and Reward.

The Global Treasury function actively manages capital risk, liquidity risk, interest rate risk in the banking book and non-trading book foreign exchange risk on an ongoing basis, supported by the Holdings Asset and Liability Management Committee ('ALCO') and local ALCOS, overseen by Treasury Risk Management and Risk Management Meetings (RMM). Pension risk is overseen by a network of local and regional pension financial risk management meetings.

The Group uses stress testing to inform management of the capital and liquidity needed to withstand internal and external shocks, including a global economic downturn or a systems failure.

Outside the stress testing framework, other risks may be identified that have the potential to affect our RWAs, capital and/or liquidity position. Downside and upside scenarios are assessed against our management objectives, and mitigating actions are assigned as necessary.

$\blacktriangleright$ For further details of our approach to treasury risk management including capital risk, liquidity risk, interest rate in the banking book, non-trading foreign exchange exposure and pension risk, see page 200 of the Annual Report and Accounts 2024.

Our approach to capital management is driven by our strategic and organisational requirements, taking into account the regulatory, economic and commercial environment. We aim to maintain a strong capital base to support the risks inherent in our business and invest in accordance with our strategy, meeting both consolidated and local regulatory capital requirements at all times.

Capital securities are regularly reviewed for compliance with guidelines. A list of the main features of our capital instruments and eligible liabilities, in accordance with Articles 437 and 437a of CRR II is published on our website at www.hsbc.com with reference to our balance sheet on 30 June 2025. The full terms and conditions of our securities are also available at www.hsbc.com.

HSBC has no current or foreseen practical or legal impediment envisaged with regard to planned dividends or payments from material subsidiaries to the parent. However, the ability of subsidiaries to pay dividends or advance monies to HSBC Holdings depends on, among other things, their respective local regulatory capital and banking requirements, exchange controls, statutory reserves, and financial and operating performance. None of our subsidiaries that are excluded from the regulatory consolidation had capital resources below their minimum regulatory requirement as at 30 June 2025.

# Own funds

The table below provides a detailed breakdown of the key components of our CET1, tier 1 and tier 2 capital, and the regulatory adjustments impacting our capital base on a transitional basis. Effective 1 January 2025, the IFRS 9 transitional arrangements came to an end, followed by the end of the CRR II grandfathering provisions on 28 June 2025. Additional value adjustments are calculated on assets measured at fair value. The minimum deductions for holdings of own CET1, AT1 and tier 2 capital ('T2') instruments are set by the PRA. The threshold deduction for significant investments relates to balances recorded on numerous lines on the balance sheet and includes: investments in insurance subsidiaries and non-consolidated associates; other CET1 equity held in financial institutions; connected funding of a capital nature; and other balance sheet lines.

Table 3: Composition of regulatory own funds¹ (UK CC1)

| | Ref $\dagger$ | **At 30 Jun 2025 \$m** | **31 Dec 2024 \$m** |
|---|---|---|---|
| **Capital instruments and the related share premium accounts** | | | |
| 1 | ordinary shares | 22,252 | 22,378 |
| 2 | Retained earnings | 139,974 | 138,959 |
| 3 | Accumulated other comprehensive income (and other reserves) | 458 | (8,410) |
| 5 | Minority interests (amount allowed in consolidated CET1) | 3,576 | 3,960 |
| UK-5a | Independently reviewed interim net profits net of any foreseeable charge or dividend | 4,726 | 7,184 |
| 6 | Common equity tier 1 capital before regulatory adjustments | 170,986 | 164,071 |
| **Common equity tier 1 capital: regulatory adjustments** | | | |
| 7 | Additional value adjustments (negative amount) | (1,337) | (1,141) |
| 8 | Intangible assets (net of related deferred tax liability) (negative amount) | (13,511) | (12,890) |
| 10 | Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability where the conditions in Article 38 (3) CRR II are met) (negative amount) | (3,326) | (3,513) |
| 11 | Fair value reserves related to gains or losses on cash flow hedges of financial instruments that are not valued at fair value | (368) | 1,057 |
| 12 | Negative amounts resulting from the calculation of expected loss amounts | (3,475) | (3,125) |
| 14 | Gains or losses on liabilities valued at fair value resulting from changes in own credit standing | 1,008 | 1,243 |
| 15 | Defined-benefit pension fund assets (negative amount) | (5,957) | (5,651) |
| 16 | Direct and indirect holdings of own CET1 instruments (negative amount) | | (40) |
| 19 | Direct, indirect and synthetic holdings by the institution of the CET1 instruments of financial sector entities where the institution has a significant investment in those entities (amount above 10% threshold and net of eligible short positions) | (14,116) | (15,076) |
| 27a | Other regulatory adjustments to CET1 capital (including IFRS 9 transitional adjustments when relevant) | (45) | (24) |
| 28 | Total regulatory adjustments to common equity tier 1 capital | (41,167) | (39,160) |
| 29 | Common equity tier 1 ('CET1') capital | 129,819 | 124,911 |
| **Additional tier 1 ('AT1') capital: instruments** | | | |
| 30 | Capital instruments and the related share premium accounts | 20,716 | 19,070 |
| 31 | classified as equity under IFRSs | 20,716 | 19,070 |
| 34 | Qualifying tier 1 capital included in consolidated AT1 capital (including minority interests not included in CET1) issued by subsidiaries and held by third parties | 154 | 216 |
| 36 | Additional tier 1 capital before regulatory adjustments | 20,870 | 19,286 |
| **Additional tier 1 capital: regulatory adjustments** | | | |
| 37 | Direct and indirect holdings of own AT1 instruments (negative amount) | (70) | (70) |
| 43 | Total regulatory adjustments to additional tier 1 capital | (70) | (70) |
| 44 | Additional tier 1 capital | 20,800 | 19,216 |
| 45 | Tier 1 capital (T1 = CET1 + AT1) | 150,619 | 144,127 |
| **Tier 2 capital: instruments and provisions** | | | |
| 46 | Capital instruments and the related share premium accounts | 28,122 | 24,292 |
| UK-47b | Amount of qualifying items referred to in Article 494b (2) CRR II subject to phase out from T2 | | 3,858 |
| 48 | Qualifying own funds instruments included in consolidated T2 capital (including minority interests and AT1 instruments not included in CET1 or AT1) issued by subsidiaries and held by third parties | 1,098 | 1,184 |
| 51 | Tier 2 capital before regulatory adjustments | 29,220 | 29,334 |
| **Tier 2 capital: regulatory adjustments** | | | |
| 52 | Direct, indirect and synthetic holdings by an institution of own T2 instruments and subordinated loans (negative amount) | (80) | (80) |
| 55 | Direct and indirect holdings by the institution of the T2 instruments and subordinated loans of financial sector entities where the institution has a significant investment in those entities (net of eligible short positions) | (1,263) | (995) |
| 57 | Total regulatory adjustments to tier 2 capital | (1,343) | (1,075) |
| 58 | Tier 2 capital | 27,877 | 28,259 |
| 59 | Total capital (TC = T1 + T2) | 178,496 | 172,386 |
| 60 | Total Risk exposure amount | 886,860 | 838,254 |

## Capital ratios and buffers (%)

| | Ref $\dagger$ | **30 Jun 2025 \$m** | **31 Dec 2024 \$m** |
|---|---|---|---|
| 61 | Common equity tier 1 (as a percentage of total risk exposure amount) | 14.6 | 14.9 |
| 62 | Tier 1 (as a percentage of total risk exposure amount) | 17.0 | 17.2 |
| 63 | Total capital (as a percentage of total risk exposure amount) | 20.1 | 20.6 |
| 64 | Institution CET1 overall capital requirement (per Article 92 (1) CRR II, plus additional requirement in accordance with point (a) of Article 104(1) CRR II, and combined buffer requirement in accordance with Article 128(6) CRR II as a percentage of risk exposure amount) | 11.2 | 11.1 |
| 65 | capital conservation buffer requirement | 2.5 | 2.5 |
| 66 | countercyclical buffer requirement | 0.7 | 0.7 |
| 67a | Global systemically important institution ('G-SII') buffer | 2.0 | 2.0 |
| 68 | Common equity tier 1 available to meet buffers | 8.7 | 8.9 |
| **Amounts below the threshold for deduction (before risk weighting)** | | | |
| 72 | Direct and indirect holdings of own funds and eligible liabilities of financial sector entities where the institution does not have a significant investment in those entities (amount below 10% threshold and net of eligible short positions) | 3,860 | 3,497 |
| 73 | Direct and indirect holdings by the institution of the CET1 instruments of financial sector entities where the institution has a significant investment in those entities (amount below 17.65% thresholds and net of eligible short positions) | 14,394 | 13,997 |
| 75 | Deferred tax assets arising from temporary differences (amount below 17.65% threshold, net of related tax liability where the conditions in Article 38 (3) CRR II are met) | 4,018 | 4,364 |
| **Applicable caps on the inclusion of provisions in tier 2** | | | |
| 77 | Cap on inclusion of credit risk adjustments in T2 under standardised approach | 2,535 | 2,251 |
| 79 | Cap for inclusion of credit risk adjustments in T2 under internal ratings-based approach | 3,171 | 3,015 |

$\dagger$ The references (a)-(p) identify balance sheet components in Table 2: Reconciliation of regulatory own funds to balance sheet in the financial statements (UK CC2), which are used in the calculation of regulatory capital. This table shows how they contribute to the regulatory capital calculation. Their contribution may differ from their accounting value in Table 2 as a result of adjustment or analysis to apply regulatory definitions of capital.

$^1$ From 30 June 2025, the regulatory valuation of Tier 2 capital increased by \$0.5bn due to the inclusion of the associated accrued interest. Comparatives have not been restated.

At 30 June 2025, our CET1 capital ratio decreased to 14.6% from 14.9% at 31 December 2024, driven by an increase in RWAs of \$48.6bn, partly offset by an increase in CET1 capital of \$4.9bn. The overall decrease in our CET1 ratio during the period was primarily contributed by:

*   a 0.4 percentage points decrease driven by higher RWAs mainly from asset size movements;
*   a 0.2 percentage points net decrease from strategic transactions;
*   a 0.1 percentage point decrease from regulatory deductions, partly offset by the FVOCI reserve and other movements;
*   a 0.2 percentage points increase from capital generation, mainly through regulatory profits less dividends, adjusted for the share buy-backs announced along with our 4Q24 and 1Q25 results; and
*   a 0.1 percentage point increase from the favourable impact of foreign exchange fluctuations.

Our Pillar 2A requirement at 30 June 2025, as per the PRA's Individual Capital Requirement based on a point-in-time assessment, was equivalent to 2.6% of RWAs, of which 1.5% was required to be met by CET1. Throughout the first half of 2025, we complied with the PRA's regulatory capital adequacy requirements.

# Capital buffers

Our geographical breakdown and institution-specific countercyclical capital buffer ('CCyB') disclosure is provided on page 71 of this document. The global systemically important bank ('G-SIB') indicators disclosure is published annually on our website, www.hsbc.com/investors.

| Risk category | Scope of permissible approaches | Our approach |
|---|---|---|
| Credit risk | The Basel committee's framework applies three approaches of increasing sophistication to the calculation of Pillar 1 credit risk capital requirements. The most basic level, the standardised approach, requires banks to use external credit ratings to determine the risk weightings applied to rated counterparties. Other counterparties are grouped into broad categories, and standardised risk weightings are applied to these categories. The next level, the Foundation IRB ('FIRB') approach, allows banks to calculate their credit risk capital requirements on the basis of their internal assessment of a counterparty's probability of default ('PD'), but subjects their quantified estimates of exposure at default ('EAD') and loss given default ('LGD') to standard supervisory parameters. Finally, the advanced IRB ('AIRB') approach allows banks to use their own internal assessment in both determining PD and quantifying EAD and LGD. | For consolidated Group reporting, we have adopted the AIRB approach for the majority of our business. Some portfolios remain on the standardised or FIRB approaches: pending the issuance of local regulations or model approval; following supervisory prescription of a non-advanced approach; or under exemptions from IRB treatment. |
| Counterparty credit risk | CCR covers the risk of counterparty default and potential mark-to-market losses in derivatives and securities financing transactions ('SFTs'). The potential for mark-to-market losses is known as CVA risk. The exposure value, for a given netting set, is determined either by the credit risk mitigation ('CRM') approach, Standardised Approach for Counterparty Credit Risk ('SA-CCR'), or by IMM. For SFTs either the simple or comprehensive approach is applied to recognition of collateral with SFTs or the Value at Risk ('VaR') approach. For CVA, permissible approaches are the Standardised Approach ('SA-CVA') and Advanced Approach ('AA-CVA'). | We primarily use the SA-CCR and internal model method ('IMM') approaches for CCR. For CVA, we apply an approach consistent with our permissions. Details of the IMM permission we have received from the PRA can be found in the Financial Services Register on the PRA's website. |
| Equity | Capital requirements for non-trading book holdings of equity can be assessed under the standardised or IRB approaches. Underlying equity positions within collective investment undertakings ('CIU') must be treated using the IRB equity simple risk-weight approach. | We calculate capital requirements for: non-trading book equity holdings using the standardised approach; and underlying equity positions within collective investments undertakings using the IRB equity simple risk-weight approach. |
| Securitisation | The framework prescribes the following approaches: internal ratings-based approach ('SEC-IRBA'); standardised approach ('SEC-SA'); external ratings-based approach ('SEC-ERBA'); and internal assessment approach ('IAA'). | Under the framework: our originated positions are reported under SEC-IRBA; our positions in the sponsored Solitaire programme and our investment in third-party positions are reported under SEC-SA and SEC-ERBA; and our sponsored positions in Regency are reported under IAA. Our IAA approach is audited annually by internal model review and is subject to review by the PRA. For definitions of Solitaire and Regency securities, see page 61. |
| Market risk | Market risk capital requirements can be determined under either the standardised rules or the internal models approach ('IMA'). The latter involves the use of internal value at risk ('VaR') models to measure market risks and determine the appropriate capital requirement. In addition to the VaR models, other internal models permitted under IMA include stressed value at risk ('SVaR'), incremental risk charge ('IRC') and comprehensive risk measure. | The market risk capital requirement is measured using internal market risk models, where approved by the PRA, or under the standardised rules. Our internal market risk models comprise VaR, SVaR and IRC. Non-proprietary details of the scope of our IMA permissions are available in the Financial Services Register on the PRA's website. |
| Operational risk | The Basel Committee allows firms to calculate their operational risk capital requirement under the basic indicator approach, the standardised approach or the advanced measurement approach. | We currently use the standardised approach in determining our operational risk capital requirement. We have in place an operational risk model that is used for economic capital calculation purposes. |

## Pillar 1 minimum capital requirements and RWA flow

Pillar 1 covers the minimum capital resource requirements for credit risk, counterparty credit risk ('CCR'), equity, securitisation, market risk and operational risk. These requirements are expressed in terms of RWAs.

# Risk-weighted assets

The table below shows total RWAs including free deliveries, and the corresponding total own funds requirement split by risk type. Equities under the simple risk-weighted approach include off-balance sheet CIU equity exposures, calculated as per the PRA Rulebook Article 132(c), and 'Other counterparty credit risk' includes securities financing transactions RWAs.

Table 4: Overview of risk-weighted exposure amounts (OV1)

| | | **30 Jun 2025** | | | **31 Mar 2025** | | | **31 Dec 2024** | |
|---|---|---|---|---|---|---|---|---|---|
| | | RWAS \$m | Total own funds requirements \$m | RWAS \$m | Total own funds requirements \$m | RWAS \$m | Total own funds requirements \$m |
| 1 | Credit risk (excluding counterparty credit risk) | 692,919 | 55,434 | 665,802 | 53,264 | 648,230 | 51,859 |
| 2 | standardised approach | 197,698 | 15,816 | 180,789 | 14,463 | 177,202 | 14,176 |
| 3 | foundation IRB approach | 94,974 | 7,598 | 88,875 | 7,110 | 84,195 | 6,736 |
| 4 | slotting approach | 22,106 | 1,768 | 21,784 | 1,743 | 22,269 | 1,782 |
| UK-4a | equities under the simple risk-weighted approach | 5,508 | 441 | 5,053 | 404 | 4,700 | 376 |
| 5 | advanced IRB approach | 372,633 | 29,811 | 369,301 | 29,544 | 359,864 | 28,789 |
| 6 | Counterparty credit risk | 41,343 | 3,307 | 36,674 | 2,933 | 37,642 | 3,012 |
| 7 | standardised approach | 9,978 | 798 | 9,731 | 778 | 9,225 | 738 |
| 8 | internal model method | 15,199 | 1,216 | 12,429 | 994 | 13,771 | 1,102 |
| UK-8a | exposures to a central counterparty | 2,018 | 161 | 1,765 | 141 | 1,808 | 145 |
| UK-8b | credit valuation adjustment | 1,704 | 136 | 1,911 | 153 | 2,235 | 179 |
| 9 | other counterparty credit risk | 12,444 | 996 | 10,838 | 867 | 10,603 | 848 |
| 15 | Settlement risk | 29 | 2 | 68 | 5 | 40 | 3 |
| 16 | Securitisation exposures in the non-trading book (after the cap) | 10,579 | 846 | 8,985 | 719 | 9,665 | 774 |
| 17 | internal ratings-based approach ('SEC-IRBA') | 2,773 | 222 | 2,813 | 225 | 2,832 | 227 |
| 18 | external ratings-based approach ('SEC-ERBA') (including internal assessment approach ('IAA')) | 1,422 | 114 | 1,327 | 106 | 2,063 | 165 |
| 19 | standardised approach ('SEC-SA') | 4,853 | 388 | 4,605 | 368 | 4,488 | 359 |
| UK-19a | 1250%/deduction | 1,531 | 122 | 240 | 19 | 282 | 23 |
| 20 | Position, foreign exchange and commodities risks (market risk) | 32,547 | 2,604 | 34,366 | 2,802 | 36,205 | 2,897 |
| 21 | standardised approach | 9,509 | 761 | 8,608 | 741 | 9,334 | 747 |
| 22 | internal models approach | 23,038 | 1,843 | 25,758 | 2,061 | 26,871 | 2,150 |
| 23 | Operational risk | 109,443 | 8,755 | 107,362 | 8,589 | 106,472 | 8,518 |
| UK-23b | standardised approach | 109,443 | 8,755 | 107,362 | 8,589 | 106,472 | 8,518 |
| 29 | Total | 886,860 | 70,948 | 853,257 | 68,313 | 838,254 | 67,062 |
| 24 | of which: Amounts below the thresholds for deduction (subject to 250% risk weight)¹ | 45,966 | 3,677 | 45,073 | 3,606 | 45,784 | 3,663 |

$^1$ These balances are included in rows 2 and 5 of the table and include thresholds for the recognition of significant investments and deferred tax assets.

The 2Q25 quarter RWA movements in the table above are explained by risk type in the following comments.

### Credit risk, including amounts below the thresholds for deduction

Credit risk RWAs increased by \$27.1bn. This included a \$16.7bn rise from foreign currency translation differences and a \$10.4bn rise attributable to:

*   a \$10.8bn increase in asset size, principally from corporate lending in our UK business and lending growth in Saudi Awwal Bank ('SAB'); and
*   a \$1.6bn increase primarily due to methodology changes in CIB, partly offset by credit risk parameter refinements in CIB and our Hong Kong business segments.

These increases were partly offset by:

*   a \$1.1bn decrease from asset quality mainly due to portfolio mix changes in our UK business and risk parameter changes in Hong Kong, partly offset by credit risk migrations in our CIB and Hong Kong business segments; and
*   a \$1.0bn decrease from the sale of American Depositary Receipts ('ADRs') in Grupo Financiero Galicia ('Galicia') received as purchase consideration for the sale of our business in Argentina.

### Counterparty credit risk, including settlement risk

Counterparty credit risk RWAs increased by \$4.6bn, primarily due to a rise in our derivatives portfolio driven by client activity and favourable yields in the UK, and methodology changes mainly in our CIB business.

### Market risk

Market risk RWAs decreased by \$1.8bn, attributable to reductions in modelled measures, primarily SVaR, as periods of greater volatility dropped out of the data, and changes in the risk profile of interest rates.

### Securitisation

Securitisation RWAs increased by \$1.6bn mainly due to asset quality deterioration in our UK business.

### Operational risk

Operational risk RWAs increased by \$2.1bn, due to foreign currency translation differences of \$3.6bn, partly offset by a \$1.5bn decrease due to the PRA waiver granted in June 2025 for the exclusion of RWAs related to the disposal of our business in Argentina.

# Risk-weighted assets

## RWA flow statements of credit risk exposures under the IRB approach (CR8)

The table below shows the drivers of the quarterly movements of credit risk RWAs, excluding counterparty credit risk and including free deliveries under the IRB approach. The table also excludes securitisation positions, equity exposures and non-credit obligation assets.

Table 5: RWA flow statements of credit risk exposures under the IRB approach (CR8)

| | | **Quarter ended 30 Jun 2025 \$m** | **31 Mar 2025 \$m** | **31 Dec 2024 \$m** | **30 Sep 2024 \$m** |
|---|---|---|---|---|---|
| 1 | RWAs at the opening period | 467,474 | 454,249 | 478,334 | 460,941 |
| 2 | Asset size | 7,171 | 4,744 | 810 | 4,437 |
| 3 | Asset quality | (1,418) | 4,779 | 2,915 | 3,709 |
| 4 | Model updates | 49 | | (549) | 1,305 |
| 5 | Methodology and policy | (7,722) | (1,216) | (9,283) | (834) |
| 6 | Acquisitions and disposals | | (4,753) | | (10,079) |
| 7 | Foreign exchange movements$^1$ | 12,046 | 4,869 | (15,079) | 10,630 |
| 9 | RWAs at the closing period | 477,551 | 467,474 | 454,249 | 478,334 |

$^1$ Foreign exchange movements in this disclosure are computed by retranslating the RWAs into US dollars based on the underlying transactional currencies, and other movements in the table are presented on a constant currency basis.

Excluding the \$12bn foreign exchange movements, RWAs under the IRB approach decreased by \$2.0bn during 2Q25 primarily from:

*   a \$7.7bn decrease primarily due to methodology changes in CIB, where a portfolio has been moved from the internal ratings-based approach to the standardised approach and credit risk parameter refinements in our CIB and Hong Kong business segments;
*   a \$1.4bn decrease from asset quality mainly due to portfolio mix changes in our UK business and risk parameter changes in Hong Kong, partly offset by credit risk migrations in our CIB and Hong Kong business segments; and
*   a 7.2bn increase in asset size movements principally from corporate lending in our UK business.

The table below shows the drivers of the quarterly movements of counterparty credit risk RWAs under the internal model method approach.

Table 6: RWA flow statements of CCR exposures under IMM (CCR7)

| | | **Quarter ended 30 Jun 2025 \$m** | **31 Mar 2025 \$m** | **31 Dec 2024 \$m** | **30 Sep 2024 \$m** |
|---|---|---|---|---|---|
| 1 | RWAs at the opening period | 12,429 | 13,771 | 13,021 | 12,682 |
| 2 | Asset size | 2,247 | (1,120) | 725 | (409) |
| 3 | Credit quality of counterparties | 45 | 30 | 61 |
| 4 | Model updates (IMM only) | | (252) | |
| 5 | Methodology and policy (IMM only) | 478 | | |
| 9 | RWAs at the closing period | 15,199 | 12,429 | 13,771 | 13,021 |

RWAs under the internal model method increased by \$2.8bn in 2Q25, primarily due to organic movements on account of mark-to-market volatility in UK and methodology changes in CIB, where a portfolio has been moved from the internal ratings-based approach to the standardised approach.

## RWA flow statements of market risk exposures under IMA (MR2-B)

The table below shows the drivers of the quarterly movements of market risk RWAs under the internal model approach, split by value at risk ('VaR'), stressed VaR ('SVaR'), incremental risk charge ('IRC') and other models. Rows 1a/1b and 8a/8b represent differences between RWAS reported for the period and RWAs calculated on a spot basis at the end of the reporting period, except RWAs in 'Other', which includes components that are calculated on an average basis.

Table 7: RWA flow statements of market risk exposures under IMA (MR2-B)

| | | **VaR \$m** | **Stressed VaR \$m** | **IRC \$m** | **Other \$m** | **Total RWAS \$m** | **Total own funds requirements \$m** |
|---|---|---|---|---|---|---|---|
| 1 | RWAs at 1 Apr 2025 | 5,606 | 11,906 | 6,565 | 1,681 | 25,758 | 2,061 |
| 1a | Regulatory adjustment | (3,807) | (7,697) | | (11,520) | (922) |
| 1b | RWAs at the previous quarter end (end of day) | 1,799 | 4,209 | 6,549 | 1,681 | 14,238 | 1,139 |
| 2 | Movement in risk levels | (250) | (1,925) | (2,126) | 460 | (3,841) | (307) |
| 3 | Model updates/changes | | | | | | |
| 8a | RWAs at the end of the reporting period (end of day) | 1,549 | 2,284 | 4,423 | 2,141 | 10,397 | 832 |
| 8b | Regulatory adjustment | 3,598 | 8,164 | 879 | | 12,641 | 1,011 |
| 8 | RWAs at 30 Jun 2025 | 5,147 | 10,448 | 5,302 | 2,141 | 23,038 | 1,843 |
| 1 | RWAs at 1 Jan 2025 | 6,083 | 12,952 | 6,305 | 1,531 | 26,871 | 2,150 |
| 1a | Regulatory adjustment | (4,459) | (8,684) | (1,042) | | (14,185) | (1,135) |
| 1b | RWAs at the previous quarter end (end of day) | 1,624 | 4,268 | 5,263 | 1,531 | 12,686 | 1,015 |
| 2 | Movement in risk levels | 202 | (2) | 1,286 | 150 | 1,636 | 131 |
| 3 | Model updates/changes | | (27) | | (57) | (84) | (7) |
| 8a | RWAs at the end of the reporting period (end of day) | 1,799 | 4,209 | 6,549 | 1,681 | 14,238 | 1,139 |
| 8b | Regulatory adjustment | 3,807 | 7,697 | 16 | | 11,520 | 922 |
| 8 | RWAs at 31 Mar 2025 | 5,606 | 11,906 | 6,565 | 1,681 | 25,758 | 2,061 |

RWAs under the internal model approach decreased by \$2.7bn during 2Q25, mainly attributable to reductions in stressed value at risk due to changes in interest rates risk profile and a lower incremental risk charge contribution owing to decreased exposure in the portfolio.

# Leverage

The risk of excessive leverage is managed as part of HSBC's global risk appetite framework and monitored using the leverage ratio metric within the risk appetite statement ('RAS').

$\blacktriangleright$ For further details of our risk management tools and the management of our risk appetite through our global risk appetite framework, see page 127 of the Annual Report and Accounts 2024.

The table below provides a detailed breakdown of the components of our leverage exposure, including the split of the on- and off-balance sheet exposures, leverage ratios, minimum requirements and buffers. Effective 1 January 2025, the IFRS 9 transitional arrangements came to an end. The components of the leverage ratio on an average basis are included below in accordance with the UK's leverage ratio framework.

Table 8: Leverage ratio common disclosure (UK LR2-LRCom)

| | | **At 30 Jun 2025 \$bn** | **31 Dec 2024 \$bn** |
|---|---|---|---|
| **On-balance sheet exposures (excluding derivatives and securities financing transactions ('SFTs'))** | | | |
| 1 | On-balance sheet items (excluding derivatives, SFTs, but including collateral) | 2,482.9 | 2,342.9 |
| 2 | Gross-up for derivatives collateral provided, where deducted from the balance sheet assets pursuant to the applicable accounting framework | 8.5 | 5.6 |
| 3 | (Deductions of receivables assets for cash variation margin provided in derivatives transactions) | (58.5) | (54.3) |
| 6 | (Asset amounts deducted in determining tier 1 capital (leverage)) | (40.5) | (40.4) |
| 7 | Total on-balance sheet exposures (excluding derivatives and SFTs) | 2,392.4 | 2,253.8 |
| **Derivative exposures** | | | |
| 8 | Replacement cost associated with SA-CCR derivatives transactions (i.e. net of eligible cash variation margin) | 47.8 | 60.3 |
| 9 | Add-on amounts for potential future exposure associated with SA-CCR derivatives transactions | 128.3 | 114.9 |
| 10 | (Exempted CCP leg of client-cleared trade exposures) (SA-CCR) | (32.5) | (33.9) |
| 11 | Adjusted effective notional amount of written credit derivatives | 60.3 | 56.6 |
| 12 | (Adjusted effective notional offsets and add-on deductions for written credit derivatives) | (57.1) | (54.7) |
| 13 | Total derivative exposures | 146.8 | 143.2 |
| **SFT exposures** | | | |
| 14 | Gross SFT assets (with no recognition of netting), after adjusting for sales accounting transactions | 597.1 | 486.8 |
| 15 | (Netted amounts of cash payables and cash receivables of gross SFT assets) | (257.0) | (190.7) |
| 16 | Counterparty credit risk exposure for SFT assets | 24.1 | 13.5 |
| 18 | Total securities financing transaction exposures | 364.2 | 309.6 |
| **Other off-balance sheet exposures** | | | |
| 19 | Off-balance sheet exposures at gross notional amount | 973.7 | 938.4 |
| 20 | (Adjustments for conversion to credit equivalent amounts) | (722.8) | (707.2) |
| 22 | Total off-balance sheet exposures | 250.9 | 231.2 |
| **Capital and total exposures measure** | | | |
| 23 | Tier 1 capital (leverage) | 150.6 | 144.1 |
| 24 | Total exposure measure including claims on central banks | 3,154.3 | 2,937.8 |
| UK-24a | (-) Claims on central banks excluded | (361.4) | (366.7) |
| UK-24b | Total exposure measure excluding claims on central banks | 2,792.9 | 2,571.1 |
| **Leverage ratios** | | | |
| 25 | Leverage ratio excluding claims on central banks (%) | 5.4 | 5.6 |
| UK-25a | Fully loaded ECL accounting model leverage ratio excluding claims on central banks (%) | 5.4 | 5.6 |
| UK-25b | Leverage ratio excluding central bank reserves as if the temporary treatment of unrealised gains and losses measured at fair value through other comprehensive income had not been applied (%) | 5.4 | 5.6 |
| UK-25c | Leverage ratio including claims on central banks (%) | 4.8 | 4.9 |
| 26 | Regulatory minimum leverage ratio requirement (%) | 3.3 | 3.3 |
| **Additional leverage ratio disclosure requirements - leverage ratio buffers** | | | |
| 27 | Leverage ratio buffer (%) | 0.9 | 0.9 |
| UK-27a | of which: G-SII or O-SII additional leverage ratio buffer (%) | 0.7 | 0.7 |
| UK-27b | of which: countercyclical leverage ratio buffer (%) | 0.2 | 0.2 |
| **Additional leverage ratio disclosure requirements - disclosure of mean values** | | | |
| 28 | Mean of daily values of gross SFT assets, after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivable | 338.9 | 297.2 |
| 29 | Quarter-end value of gross SFT assets, after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables | 340.1 | 296.1 |
| UK-31 | Average total exposure measure including claims on central banks | 3,088.1 | 2,972.8 |
| UK-32 | Average total exposure measure excluding claims on central banks | 2,732.8 | 2,608.4 |
| UK-33 | Average leverage ratio including claims on central banks (%) | 4.8 | 4.9 |
| UK-34 | Average leverage ratio excluding claims on central banks (%) | 5.4 | 5.5 |

Our leverage ratio was 5.4% at 30 June 2025, down from 5.6% at 31 December 2024. The increase in the leverage exposures led to a 0.4 percentage points fall in the leverage ratio, primarily due to growth in the balance sheet and the impact of foreign currency translation differences, which was partly offset by a 0.2 percentage points increase due to a rise in tier 1 capital driven mainly by foreign currency translation differences.

At 30 June 2025, our UK minimum leverage ratio requirement of 3.25% was supplemented by a leverage ratio buffer of 0.9%, which consisted of an additional leverage ratio buffer of 0.7% and a countercyclical leverage ratio buffer of 0.2%.

These buffers translated into capital of \$19.6bn and \$5.6bn respectively.

The average leverage ratio was 5.4% at 30 June 2025, down from 5.5% at 31 December 2024. The increase in the average leverage exposure led to a 0.2 percentage point fall in the average leverage ratio, mainly driven by growth in the average balance sheet. This was partly offset by a 0.1 percentage point increase due to a rise in average tier 1 capital.

The table below provides a reconciliation of the total assets in our published balance sheet under IFRS and the total leverage exposure.

Table 9: Summary reconciliation of accounting assets and leverage ratio exposures (UK LR1- LRSum)

| | | **At 30 Jun 2025 \$bn** | **31 Dec 2024 \$bn** |
|---|---|---|---|
| 1 | Total assets as per published financial statements | 3,214.4 | 3,017.0 |
| 2 | Adjustment for entities which are consolidated for accounting purposes but are outside the scope of prudential consolidation | (121.8) | (108.2) |
| 3 | (Adjustment for securitised exposures that meet the operational requirements for the recognition of risk transference) | (0.9) | (0.9) |
| 4 | (Adjustment for exemption of exposures to central banks) | (361.4) | (366.7) |
| 6 | Adjustment for regular-way purchases and sales of financial assets subject to trade date accounting | (41.6) | (12.5) |
| 7 | Adjustment for eligible cash pooling transactions | (6.5) | (6.8) |
| 8 | Adjustment for derivative financial instruments | (153.1) | (174.4) |
| 9 | Adjustment for securities financing transactions ('SFTs') | 48.5 | 30.6 |
| 10 | Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet exposures) | 250.9 | 231.2 |
| 11 | (Adjustment for prudent valuation adjustments and specific and general provisions which have reduced tier 1 capital (leverage)) | (40.5) | (40.4) |
| 12 | Other adjustments | 4.9 | 2.2 |
| 13 | Total leverage ratio exposure | 2,792.9 | 2,571.1 |

The table below provides a breakdown of on-balance sheet exposures excluding derivatives, SFTs and exempted exposures by asset class.

Table 10: Leverage ratio - split of on-balance sheet exposures (excluding derivatives, SFTs and exempted exposures) (UK LR3-LRSpl)

| | | **At 30 Jun 2025 \$bn** | **31 Dec 2024 \$bn** |
|---|---|---|---|
| UK-1 | Total on-balance sheet exposures (excluding derivatives, SFTs and exempted exposures), of which: | 2,063.0 | 1,921.9 |
| UK-2 | Trading book exposures | 311.7 | 285.6 |
| UK-3 | Banking book exposures, of which: | 1,751.3 | 1,636.3 |
| UK-4 | Covered bonds | 2.7 | 2.0 |
| UK-5 | Exposures treated as sovereigns | 467.9 | 429.2 |
| UK-6 | Exposures to regional governments, multilateral development banks, international organisations and public sector entities not treated as sovereigns | 3.1 | 2.6 |
| UK-7 | Institutions | 71.0 | 69.1 |
| UK-8 | Secured by mortgages of immovable properties | 386.7 | 362.9 |
| UK-9 | Retail exposures | 73.2 | 71.3 |
| UK-10 | Corporates | 522.5 | 492.8 |
| UK-11 | Exposures in default | 17.2 | 16.1 |
| UK-12 | Other exposures (e.g. equity, securitisations and other non-credit obligation assets) | 207.0 | 190.3 |

# Liquidity

## Management of liquidity and funding risk

We manage liquidity and funding risk at an operating entity level, in accordance with globally consistent policies, procedures and reporting standards.

### Liquidity coverage ratio

The LCR aims to ensure that a bank has sufficient unencumbered HQLA to meet its liquidity needs in a 30 calendar day liquidity stress scenario. For the disclosure of the LCR, we follow Article 451a of CRR II.

The average Group LCR for the 12 months to 30 June 2025 was 140% or \$193bn and 138% or \$179bn at 31 December 2024, above the regulatory requirement. At 30 June 2025, all of the Group's material operating entities exceeded their minimum required regulatory levels. The Group consolidation methodology includes a deduction to reflect the impact of limitations in the transferability of entity liquidity around the Group. The result was an adjustment of \$155bn to LCR HQLA and \$6bn to LCR inflows on an average basis.

The average Group LCR HQLA of \$678bn (31 December 2024: \$649bn was held in a range of asset classes and currencies.

The Group and its entities actively manage liquidity and funding drivers within its balance sheet, including derivatives and collateral management.

### Currency mismatch in the LCR

The Group's internal liquidity and funding risk management framework requires all operating entities to monitor the LCR for material currencies. Limits are set to ensure that outflows can be met, given assumptions on stressed capacity in the foreign exchange swap markets. This continuous monitoring helps with the overall management of currency exposures, in line with our internal framework.

## Net stable funding ratio

We use the NSFR or other appropriate metrics as a basis for ensuring operating entities raise sufficient stable funding to support their business activities. The NSFR is defined as the ratio between the amount of stable funding available and the amount of stable funding required. The average Group NSFR over the previous four quarters was 145% at 30 June 2025 and 143% at 31 December 2024.

## Sources of funding

Our primary sources of funding are customer current accounts and savings deposits payable on demand or at short notice. We issue secured and unsecured wholesale securities to supplement customer deposits, meet regulatory obligations and to change the currency mix, maturity profile or location of our liabilities.

$\blacktriangleright$ For further details of our approach to managing Liquidity Risk, see the Treasury Risk management section on page 8.

More details on the concentration of funding and liquidity sources may be found on page 209 of the Annual Report and Accounts 2024.

### Quantitative information of LCR (LIQ1)

The table below sets out the granular split of cash outflows and cash inflows, as well as the available HQLA on both an unweighted and weighted basis, which are used to derive the LCR. The LCR, HQLA and net outflows are based on the average over the preceding 12 months.

Table 11: Quantitative information of LCR (LIQ1)

| UK-1b | Number of data points used in the calculation of averages | **Quarter ended 30 Jun 2025** | | **Quarter ended 31 Mar 2025** | | **Quarter ended 31 Dec 2024** | | **Quarter ended 30 Sep 2024** | |
|---|---|---|---|---|---|---|---|---|---|
| | | Total unweighted value \$m | Total weighted value \$m | Total unweighted value \$m | Total weighted value \$m | Total unweighted value \$m | Total weighted value \$m | Total unweighted value \$m | Total weighted value \$m |
| **High quality liquid assets** | | | | | | | | | |
| 1 | Total high quality liquid assets ('HQLA') | | 678,059 | | 660,704 | | 649,210 | | 649,199 | |
| **Cash outflows** | | | | | | | | | |
| 2 | Retail deposits and small business funding | 858,824 | 92,919 | 841,474 | 91,377 | 838,008 | 91,064 | 840,445 | 91,106 |
| 3 | of which: | | | | | | | | |
| 4 | stable deposits | 369,514 | 18,476 | 356,188 | 17,809 | 348,397 | 17,420 | 344,131 | 17,207 |
| 5 | less stable deposits | 489,310 | 74,443 | 485,286 | 73,568 | 489,611 | 73,644 | 496,314 | 73,899 |
| 6 | Unsecured wholesale funding: | 811,908 | 370,670 | 797,686 | 363,636 | 793,848 | 360,467 | 792,760 | 358,466 |
| 7 | operational deposits (all counterparties) and deposits in networks of cooperative banks | 251,183 | 61,280 | 247,716 | 60,465 | 250,089 | 61,088 | 250,731 | 61,277 |
| 8 | non-operational deposits (all counterparties) | 549,061 | 297,726 | 538,213 | 291,414 | 532,596 | 288,216 | 530,853 | 286,013 |
| 9 | unsecured debt | 11,664 | 11,664 | 11,757 | 11,757 | 11,163 | 11,163 | 11,176 | 11,176 |
| 10 | Secured wholesale funding | 34,283 | 33,373 | 31,688 | 29,826 |
| 11 | Additional requirements | 355,419 | 100,118 | 349,090 | 97,266 | 345,860 | 96,645 | 339,232 | 97,190 |
| 12 | outflows related to derivative exposures and other collateral requirements | 52,198 | 43,038 | 50,502 | 41,311 | 50,057 | 41,153 | 49,718 | 41,616 |
| 13 | credit and liquidity facilities | 303,221 | 57,080 | 298,588 | 55,955 | 295,803 | 55,492 | 289,514 | 55,574 |
| 14 | Other contractual funding obligations$^1$ | 87,620 | 47,300 | 88,801 | 48,859 | 92,734 | 54,431 | 96,920 | 59,610 |
| 15 | Other contingent funding obligations | 650,477 | 24,138 | 642,402 | 22,796 | 643,283 | 21,983 | 648,174 | 21,746 |
| 16 | Total cash outflows | 669,428 | 657,307 | 656,278 | 657,944 |
| **Cash inflows** | | | | | | | | | |
| 17 | Secured lending transactions (including reverse repos) | 409,611 | 53,108 | 389,140 | 50,119 | 376,767 | 48,548 | 361,134 | 47,043 |
| 18 | Inflows from fully performing exposures | 97,982 | 73,092 | 100,148 | 75,459 | 104,474 | 79,173 | 107,274 | 81,171 |
| 19 | Other cash inflows | 103,266 | 57,710 | 107,002 | 56,495 | 113,504 | 57,907 | 114,418 | 56,717 |
| 20 | Total cash inflows | 610,859 | 183,910 | 596,290 | 182,073 | 594,745 | 185,628 | 582,826 | 184,931 |
| UK-20c | Inflows subject to 75% Cap | 610,859 | 183,910 | 596,290 | 182,073 | 594,745 | 185,628 | 582,826 | 184,931 |
| **Liquidity coverage ratio (Adjusted value)** | | | | | | | | | |
| UK-21 | Liquidity Buffer | | 678,059 | | 660,704 | | 649,210 | | 649,199 |
| 22 | Total net cash outflows | | 485,518 | | 475,234 | | 470,650 | | 473,013 |
| 23 | Liquidity coverage ratio (%)$^1$ | 140 | | 139 | | 138 | | 137 | |

$^1$ We enhanced our liquidity consolidation process in 2Q24 by revising provisions that addressed historical limitations. As our Group LCR is reported on an average basis, at 2Q25 the benefit of these changes incrementally increased our LCR by circa 5%.

### Net stable funding ratio ('NSFR') (\$bn)$^2$

Table 12: Net stable funding ratio¹ (LIQ2)

| | **30 Jun 2025** | | | | | **31 Dec 2024** | | | | |
|---|---|---|---|---|---|---|---|---|---|---|
| | **Unweighted value by residual maturity (average)** | | | | **Weighted value (average) \$m** | **Unweighted value by residual maturity (average)** | | | | **Weighted value (average) \$m** |
| | **No maturity \$m** | **< 6 months \$m** | **6 months to < 1yr \$m** | **≥ 1yr \$m** | | **No maturity \$m** | **< 6 months \$m** | **6 months to < 1yr \$m** | **≥ 1yr \$m** | |
| **Available stable funding ('ASF') Items** | | | | | | | | | | |
| 1 | Capital items and instruments | 184,256 | 40 | 153 | 28,665 | 212,916 | 183,355 | 40 | 234 | 29,219 | 212,569 |
| 2 | Own funds | 184,256 | 40 | 153 | 28,665 | 212,916 | 183,355 | 40 | 234 | 29,219 | 212,569 |
| 4 | Retail deposits | 875,556 | 306 | 3,134 | 810,039 | | 845,389 | 351 | 990 | 779,605 |
| 5 | Stable deposits | 375,252 | 57 | 1 | 356,506 | | 351,341 | 71 | 1 | 333,806 |
| 6 | Less stable deposits | 500,304 | 249 | 3,133 | 453,533 | | 494,048 | 280 | 989 | 445,799 |
| 7 | Wholesale funding: | 1,149,678 | 41,196 | 146,535 | 540,174 | | 1,139,335 | 42,884 | 143,605 | 525,447 |
| 8 | Operational deposits | 252,437 | | | 126,219 | | 236,022 | | | 118,013 |
| 9 | Other wholesale funding | 897,241 | 41,196 | 146,535 | 413,955 | | 903,313 | 42,880 | 143,605 | 407,434 |
| 10 | Interdependent liabilities | 5,204 | | | | | 3,681 | | | |
| 11 | Other liabilities: | | | | | | | | | |
| 12 | NSFR derivative liabilities | 1,962 | 217,759 | 287 | 9,213 | 8,988 | 2,775 | 241,996 | 317 | 5,789 | 5,786 |
| 13 | All other liabilities and capital instruments not included in the above categories | 217,759 | 287 | 9,213 | 8,988 | 241,996 | 317 | 5,789 | 5,786 |
| 14 | Total available stable funding ('ASF') | 1,572,117 | | | | | 1,523,407 | | | |
| **Required stable funding ('RSF') Items** | | | | | | | | | | |
| 15 | Total high-quality liquid assets ('HQLA') | | | | | 67,432 | | | | | 67,798 |
| 16 | Deposits held at other financial institutions for operational purposes | 575 | | | | 287 | 591 | | | | 296 |
| 17 | Performing loans and securities: | | 532,508 | 103,157 | 805,803 | 825,074 | | 531,192 | 99,530 | 806,162 | 824,970 |
| 18 | Performing securities financing transactions with financial customers collateralised by Level 1 HQLA subject to 0% haircut | | 166,984 | 8,792 | 4,406 | 16,294 | | 168,066 | 7,406 | 3,338 | 13,947 |
| 19 | Performing securities financing transactions with financial customer collateralised by other assets and loans and advances to financial institutions | | 89,779 | 5,552 | 8,620 | 20,791 | | 88,863 | 6,147 | 7,223 | 19,402 |
| 20 | Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, and PSEs | | 143,824 | 53,728 | 274,271 | 331,778 | | 143,943 | 54,110 | 267,634 | 329,340 |
| 21 | of which: With a risk weight of less than or equal to 35% under the Basel II standardised approach for credit risk | 2,465 | 1,494 | 20,307 | 19,104 | | 2,291 | 1,690 | 22,680 | 23,862 |
| 22 | Performing residential mortgages | 9,486 | 7,748 | 356,553 | 252,332 | | 8,992 | 7,629 | 348,177 | 243,710 |
| 23 | of which: With a risk weight of less than or equal to 35% under the Basel II standardised approach for credit risk | 6,475 | 6,439 | 317,037 | 216,583 | | 6,217 | 6,173 | 306,117 | 205,843 |
| 24 | Other loans and securities that are not in default and do not qualify as HQLA, including exchange-traded equities and trade finance on-balance sheet products | 122,435 | 27,337 | 161,953 | 203,879 | | 121,328 | 24,238 | 179,790 | 218,571 |
| 25 | Interdependent assets | | | | | 6,146 | | | | | 4,347 |
| 26 | Other assets: | 186,087 | 53 | 102,403 | 147,040 | | 193,348 | 41 | 89,880 | 132,550 |
| 27 | Physical traded commodities | | | | | 15,483 | | | | | 14,306 |
| 28 | Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs | 37,481 | | | | 31,859 | | 35,032 | | | | 29,777 |
| 30 | NSFR derivative liabilities before deduction of variation margin posted | 92,902 | | | | 4,862 | | 92,569 | | | | 4,830 |
| 31 | All other assets not included in the above categories | 55,704 | 53 | 86,920 | 97,159 | | 65,747 | 41 | 75,574 | 85,783 |
| 32 | Off-balance sheet items | 181,323 | 86,864 | 683,267 | 42,859 | | 182,151 | 90,206 | 656,639 | 38,877 |
| 33 | Total RSF | | | | | 1,082,692 | | | | | 1,064,491 |
| 34 | Net stable funding ratio (%) | 145 | | | | | 143 | | | | |

$^1$ We enhanced our liquidity consolidation process in 2Q24 by revising provisions that addressed historical limitations. As our Group NSFR is reported on an average basis, at 2Q25 the benefit of these changes incrementally increased our NSFR by circa 10%.

# Credit risk approaches

The table below discloses credit risk exposures under the standardised approach by risk weights, split into exposure class. Securitisation positions are not included in this table.

Table 34: Standardised approach - exposures by asset classes and risk weights (CR5)

| Risk weight ('RW%') | **0% \$bn** | **2% \$bn** | **20% \$bn** | **35% \$bn** | **50% \$bn** | **75% \$bn** | **100% \$bn** | **150% \$bn** | **250% \$bn** | **1250% \$bn** | **Total credit exposure amount (post-CCF and CRM) \$bn** | **of which: un-rated \$bn** |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **Asset classes** | | | | | | | | | | | | |
| 1 | Central governments or central banks | 315.2 | | | 0.1 | | | 1.6 | | | | 317.5 | 0.1 |
| 2 | Regional governments or local authorities | 6.4 | 0.5 | 0.3 | 0.1 | | | | | | | 7.2 | 0.2 |
| 3 | Public sector entities | 24.8 | 2.3 | 0.3 | | | | 0.1 | | | | 25.1 | |
| 4 | Multilateral development banks | | | | | | | | | | | | |
| 5 | International organisations | 6.9 | | | | | | | | | | 6.9 | |
| 6 | Institutions | 1.8 | 0.2 | 2.1 | | | 0.6 | 4.7 | 2.4 | | | 11.8 | |
| 7 | Corporates | | 16.6 | 0.6 | 4.1 | 0.6 | 90.5 | 1.3 | | | | 113.1 | 63.2 |
| 8 | Retail | | | | 22.0 | | 22.0 | | | | | 44.0 | |
| 9 | Secured by mortgages on immovable property | | 53.6 | | | 1.4 | | | | | | 55.0 | 55.0 |
| 10 | Exposures in default | | | | 1.6 | 1.5 | | | | | | 3.1 | 3.1 |
| 11 | Exposures associated with particularly high risk | | | | | | | 1.6 | 1.5 | | | 3.1 | 0.3 |
| 14 | Units or shares in collective investment undertakings | 0.6 | 0.4 | 0.2 | 0.9 | 0.1 | | | | | | 2.2 | 0.8 |
| 15 | Equity exposures | | | | | | | 2.9 | 14.4 | | | 17.3 | 6.8 |
| 16 | Other items | 0.2 | 7.3 | | | | 9.8 | | | | | 17.3 | 17.3 |
| 17 | **Total at 30 Jun 2025** | **354.1** | **1.8** | **27.2** | **54.2** | **7.2** | **22.0** | **108.3** | **3.1** | **16.1** | **0.1** | **594.1** | **171.2** |
| | **Asset classes** | | | | | | | | | | | | |
| 1 | Central governments or central banks | 322.1 | 0.1 | | 0.7 | 0.2 | 1.7 | | | | | 324.8 | 0.2 |
| 2 | Regional governments or local authorities | 5.3 | | 0.2 | 0.5 | 0.1 | | | | | | 6.1 | 0.4 |
| 3 | Public sector entities | | | 0.1 | | | | | | | | 0.1 | |
| 4 | Multilateral development banks | 19.5 | 0.2 | 0.2 | | | | | | | | 19.9 | |
| 5 | International organisations | 5.8 | | | | | | | | | | 5.8 | |
| 6 | Institutions | 1.1 | 0.1 | 2.2 | 0.7 | | | | | | | 4.1 | 1.8 |
| 7 | Corporates | 10.6 | 0.5 | 2.1 | | 74.8 | 1.9 | | | | | 89.9 | 51.8 |
| 8 | Retail | | | 21.0 | | | 21.0 | | | | | 42.0 | |
| 9 | Secured by mortgages on immovable property | | 51.3 | | 1.2 | | | | | | | 52.5 | 52.5 |
| 10 | Exposures in default | | | | 1.4 | 1.5 | | | | | | 2.9 | 2.9 |
| 11 | Exposures associated with particularly high risk | | | | 0.9 | | | | | | | 0.9 | 0.9 |
| 14 | Units or shares in collective investment undertakings | 0.5 | 0.5 | 0.2 | 0.9 | 0.1 | | | | | | 2.3 | 0.9 |
| 15 | Equity exposures | 2.5 | | | | 14.0 | | | | | | 16.5 | 6.0 |
| 16 | Other items | 0.2 | 4.8 | | | | 8.6 | | | | | 13.6 | 13.6 |
| 17 | **Total at 31 Dec 2024** | **353.4** | **1.1** | **16.3** | **51.8** | **5.6** | **21.0** | **90.9** | **4.4** | **15.8** | **0.1** | **560.4** | **152.0** |

# Credit risk

Credit risk is the risk of financial loss if a customer or counterparty fails to meet an obligation under a contract. It arises principally from direct lending, trade finance and leasing business, but also from other products, such as guarantees and credit derivatives or from holding assets in the form of debt securities.

There have been no material changes to our policies and practices, which are described in the Pillar 3 Disclosures at 31 December 2024.

$\blacktriangleright$ Further details of our approach to credit risk may be found in 'Credit Risk' on page 42 of the Interim Report 2025.

## Credit quality of assets

Our credit risk is diversified across a number of asset classes and geographies with a credit quality profile mainly concentrated in the higher quality bands.

The IFRS 9 stages have the following characteristics:

*   **Stage 1:** These financial assets are unimpaired and without a significant increase in credit risk. A 12-month allowance for ECL is recognised.
*   **Stage 2:** A significant increase in credit risk has been experienced on these financial assets since initial recognition. A lifetime ECL is recognised.
*   **Stage 3:** There is objective evidence of impairment and the financial assets are therefore considered to be in default or otherwise credit impaired. A lifetime ECL is recognised.

Purchased or originated credit-impaired: Financial assets purchased or originated at a deep discount are seen to reflect incurred credit losses and a lifetime ECL is recognised. These exposures are included in stage 3 in the table below.

$\blacktriangleright$ For further details of credit-impaired (stage 3) exposures, see page 45 of the Interim Report 2025.

The table below breaks down the gross carrying amount of the performing and non-performing exposures and related impairments, and details of the collateral and financial guarantees received within each of the FINREP categories and definitions. Gross carrying amount includes reverse repos and settlement accounts, and the on-balance sheet exposures exclude assets held for sale. The staging analysis is non-additive as totals contain instruments not eligible for staging, such as those held at fair value through profit and loss.

Table 23: Performing and non-performing exposures and related provisions (CR1)

| | **Gross carrying amount/ nominal amount** | | | | **Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions** | | | | **Collateral and financial guarantees received** |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Performing exposures \$bn | Non-performing exposures \$bn | of which: defaulted \$bn | Performing exposures \$bn | Non-performing exposures \$bn | of which: stage 1 \$bn | of which: stage 2 \$bn | of which: stage 3 \$bn | of which: partial write-off \$bn | On-performing exposures \$bn | On non-performing exposures \$bn |
| 005 | Cash balances at central banks and other demand deposits | 296.6 | 0.1 | | | | | | | | | 943.1 | |
| 010 | Loans and advances$^1$ | 1,399.3 | 127.2 | 24.5 | 24.5 | (4.2) | (1.3) | (2.9) | (6.5) | (6.5) | (3.9) | 14.3 |
| 020 | Central banks | 24.3 | | | | | | | | | | 1.4 |
| 030 | General governments | 10.3 | 0.1 | | 0.2 | 0.2 | | | | | | 3.5 | 0.1 |
| 040 | Credit institutions | 161.7 | 0.1 | | | | | | | | | 113.7 |
| 050 | Other financial corporations | 299.5 | 0.6 | 0.1 | 0.9 | 0.9 | (0.1) | (0.1) | (0.2) | (0.2) | (0.2) | 194.3 | 0.5 |
| 060 | Non-financial corporations | 431.4 | 71.1 | 19.5 | 19.5 | (2.2) | (0.5) | (1.7) | (5.4) | (5.4) | (3.5) | 210.8 | 11.1 |
| 070 | of which: | | | | | | | | | | | | |
| 080 | SMEs | 19.9 | 3.8 | 1.2 | 1.2 | (0.2) | (0.1) | (0.1) | (0.2) | (0.2) | (0.1) | 14.7 | 0.6 |
| 090 | Households | 472.0 | 44.0 | 4.0 | 4.0 | (1.9) | (0.7) | (1.2) | (0.9) | (0.9) | (0.2) | 419.4 | 2.6 |
| 100 | Debt securities | 550.6 | 3.3 | | | | | | | | | 38.8 |
| 110 | Central banks | 24.2 | | | | | | | | | | |
| 120 | General governments | 465.0 | 1.2 | | | | | | | | | 35.6 |
| 130 | Credit Institutions | 43.0 | 0.2 | | | | | | | | | 2.9 |
| 140 | Other financial corporations | 12.9 | 0.3 | | | | | | | | | 0.1 |
| 150 | Non-financial corporations | 5.4 | 1.5 | | | | | | | | | 0.1 |
| 160 | Off-balance-sheet exposures | 1,069.2 | 24.8 | 2.7 | 1.5 | (0.4) | (0.2) | (0.2) | (0.4) | (0.2) | | 110.8 | 0.2 |
| 170 | Central banks | 0.9 | | | | | | | | | | |
| 180 | General governments | 6.5 | 1.5 | | | | | | | | | |
| 190 | Credit Institutions | 76.1 | 7.2 | | | | | | | | | |
| 200 | Other financial corporations | 130.6 | 1.3 | 0.1 | 0.1 | | | | | | | 13.7 |
| 210 | Non-financial corporations | 587.2 | 21.2 | 2.4 | 1.2 | (0.3) | (0.1) | (0.1) | (0.4) | (0.2) | | 35.5 | 0.2 |
| 220 | Households | 268.0 | 2.5 | 0.1 | 0.1 | | | | | | | 61.7 | |
| **220** | **Total at 30 Jun 2025** | **3,315.7** | **143.9** | **27.2** | **26.0** | **(4.7)** | **(1.5)** | **(3.1)** | **(6.9)** | **(6.7)** | **(3.9)** | **1,092.7** | **14.5** |

$^1$ There was an increase in stage 2 loans and advances to banks and customers. This was mainly driven by updates to our wholesale probability of default ('PD') models, which resulted in a shift of balances between stage 1 and 2, mainly in Asia.

The table below presents the residual maturity breakdown of on-balance sheet loans and debt securities. This table excludes on-balance sheet assets held for sale, cash balances with central banks, other demand deposits, and off-balance sheet exposures.

Table 24: Maturity of exposures (CR1-A)

| | | **On demand \$m** | **<= 1 year \$m** | **> 1 year <= 5 years \$m** | **> 5 years \$m** | **No stated maturity \$m** | **Total \$m** |
|---|---|---|---|---|---|---|---|
| **Loans and advances** | | | | | | | |
| 1 | Loans and advances | 75,290 | 601,462 | 289,253 | 420,456 | 26,725 | 1,413,186 |
| 2 | Debt securities | 186 | 210,102 | 234,124 | 105,670 | 416 | 550,498 |
| 3 | **Total at 30 Jun 2025** | **75,476** | **811,564** | **523,377** | **526,126** | **27,141** | **1,963,684** |
| **Loans and advances** | | | | | | | |
| 1 | Loans and advances | 72,757 | 527,107 | 265,383 | 403,805 | 22,039 | 1,291,091 |
| 2 | Debt securities | 177 | 196,961 | 205,187 | 91,831 | 342 | 494,498 |
| 3 | **Total at 31 Dec 2024** | **72,934** | **724,068** | **470,570** | **495,636** | **22,381** | **1,786,589** |

The table below shows changes in gross carrying amount of on-balance sheet non-performing loans and advances during the six months to June 2025. 'Outflow due to other situations' include foreign exchange movements, repayments and assets held for sale in default.

Table 25: Changes in the stock of non-performing loans and advances (CR2)

| | | **Half-year to 30 Jun 2025 Gross carrying value \$m** |
|---|---|---|
| 10 | Initial stock of non-performing loans and advances | 23,340 |
| 20 | Inflows to non-performing portfolios | 4,861 |
| 30 | Outflows from non-performing portfolios | (810) |
| 40 | Outflows due to write-offs | (2,029) |
| 50 | Outflow due to other situations | (834) |
| 60 | Final stock of non-performing loans and advances | 24,528 |

## Non-performing and forborne exposures

Tables 26 to 29 are presented in accordance with the European Banking Authority's ('EBA') 'Guidelines on disclosure of non-performing and forborne exposures'. The PRA has acknowledged that, while the EBA's guidelines relating to the management of non-performing exposures and forborne exposures are not applicable in the UK, the prudential aspects of these guidelines broadly represent good credit risk management standards.

The EBA defines non-performing exposures as exposures with material amounts that are more than 90 days past due or exposures where the debtor is assessed as unlikely to pay its credit obligations in full without the realisation of collateral, regardless of the existence of any past due amounts or number of days past due. For our retail portfolios a past due credit obligation is recognised where any amount of principal, interest or fees has not been paid at the date it was due (or the cycle date). Any debtors that are in default for regulatory purposes or impaired under the applicable accounting framework are always considered as non-performing exposures. The Annual Report and Accounts 2024 definition of stage 3 credit-impaired is aligned to the EBA's definition of non-performing exposures. Under the IFRS 9 accounting standard, ECLs are classified as regulatory specific credit risk adjustments.

Forborne exposures are defined by the EBA as exposures where the bank has made concessions to a debtor that is experiencing or about to experience financial difficulties in meeting its financial commitments. Our definition of forborne captures non-payment related concessions.

In the Annual Report and Accounts 2024, forborne exposures are reported within the table 'Forborne loans and advances to customers at amortised cost by stage allocation'.

Forbearance measures consist of concessions towards a debtor that is experiencing or about to experience difficulties in meeting its financial commitments ('financial difficulties').

Under the EBA's definition, exposures cease to be reported as forborne if they pass three tests:

*   the forborne exposure must have been considered to be performing for a 'probation period' of at least two years;
*   regular payments of more than an insignificant aggregate amount of principal or interest have been made during at least half of the probation period; and
*   no exposure to the debtor is more than 30 days past due during or at the end of the probation period.

The table below breaks down performing and non-performing forborne exposures by FINREP counterparty sector and shows the gross carrying amount, accumulated impairments and collateral and financial guarantees received against these exposures. The on-balance sheet exposures exclude assets held for sale.

Table 26: Credit quality of forborne exposures (CQ1)

| | **Gross carrying amount/nominal amount** | | | | **Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions** | | | | **Collateral received and financial guarantees received on forborne exposures** |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Performing forborne exposures \$m | Total defaulted \$m | of which: forborne \$m | Non-performing forborne \$m | of which: impaired \$m | On performing forborne exposures \$m | On non-performing forborne exposures \$m | Total \$m |
| 010 | Loans and advances | 5,439 | 9,297 | 9,297 | 9,297 | (434) | (2,444) | 7,318 | 4,564 |
| 050 | Other financial corporations | 86 | 202 | 202 | 202 | (1) | (29) | 188 | 124 |
| 060 | Non-financial corporations | 4,612 | 7,474 | 7,474 | 7,474 | (363) | (2,068) | 6,016 | 3,636 |
| 070 | Households | 741 | 1,621 | 1,621 | 1,621 | (70) | (347) | 1,114 | 804 |
| 090 | Loan commitments given | 451 | 273 | 273 | 273 | (3) | (5) | 187 | 107 |
| 100 | **Total at 30 Jun 2025** | **5,890** | **9,570** | **9,570** | **9,570** | **(437)** | **(2,449)** | **7,505** | **4,671** |
| 010 | Loans and advances | 4,869 | 9,051 | 9,051 | 9,051 | (533) | (2,365) | 6,636 | 4,404 |
| 050 | Other financial corporations | 78 | 191 | 191 | 191 | (1) | (36) | 214 | 150 |
| 060 | Non-financial corporations | 4,246 | 7,438 | 7,438 | 7,438 | (462) | (2,023) | 5,565 | 3,556 |
| 070 | Households | 545 | 1,422 | 1,422 | 1,422 | (70) | (306) | 857 | 698 |
| 090 | Loan commitments given | 186 | 307 | 307 | 307 | (4) | (5) | 67 | 33 |
| 100 | **Total at 31 Dec 2024** | **5,055** | **9,358** | **9,358** | **9,358** | **(533)** | **(2,369)** | **6,703** | **4,437** |

## Concentration risk

Concentrations of credit risk arise when a number of counterparties or exposures have comparable economic characteristics, are engaged in similar activities or operate in the same geographical areas or industry sectors so that their collective ability to meet contractual obligations is uniformly affected by changes in economic, political or other conditions.

We have a number of global businesses with a broad range of products. We operate in a number of geographical markets with the majority of our exposures in Asia and Europe. We use a number of controls and measures to minimise undue concentration of exposure in our portfolios across industries, countries and global businesses. These include portfolio and counterparty limits, approval and review controls, and stress testing. The following tables present information on the concentration of exposures by geography and industry.

The table below shows the credit quality of on- and off- balance sheet exposures by geography. The geographical breakdown is based on the country or territory of residence of the immediate counterparty. The table presents the countries that are contributing 10% or more of the total on-balance sheet and off-balance sheet exposures separately, with the remaining exposures aggregated within 'other countries'. The on-balance sheet exposures exclude cash and balances at central banks and assets held for sale.

Table 28: Quality of non-performing exposures by geography (CQ4)

| | **Gross carrying/ Nominal amount** | | | | **Provisions on off-balance sheet commit- ments and financial guarantee given \$m** |
|---|---|---|---|---|---|
| | Total \$m | of which: non-performing \$m | of which: defaulted \$m | of which: subject to impairment \$m | Accumulated impairment \$m |
| 010 | On-balance sheet exposures | 1,974,449 | 24,535 | 24,535 | 1,963,491 | (10,765) |
| 020 | United Kingdom | 442,619 | 5,309 | 5,309 | 439,927 | (2,119) |
| 030 | Hong Kong | 337,203 | 9,947 | 9,947 | 336,364 | (3,187) |
| 040 | United States | 357,235 | 1,393 | 1,393 | 355,616 | (443) |
| 070 | Other countries/territories | 837,392 | 7,886 | 7,886 | 831,584 | (5,016) |
| 080 | Off-balance sheet exposures | 1,071,839 | 2,650 | 2,650 | | (767) |
| 090 | Hong Kong | 218,002 | 180 | 180 | | (39) |
| 100 | United Kingdom | 149,483 | 602 | 602 | | (154) |
| 110 | United States | 131,468 | 568 | 568 | | (69) |
| 140 | Other countries/territories | 572,886 | 1,300 | 1,300 | | (505) |
| 150 | **Total at 30 Jun 2025** | **3,046,288** | **27,185** | **27,185** | **1,963,491** | **(10,765)** | **(767)** |
| 010 | On-balance sheet exposures | 1,795,926 | 23,347 | 23,347 | 1,785,814 | (10,329) |
| 020 | United Kingdom | 375,331 | 4,694 | 4,694 | 373,007 | (2,242) |
| 030 | Hong Kong | 341,109 | 9,693 | 9,693 | 339,321 | (2,945) |
| 040 | United States | 318,818 | 904 | 904 | 317,371 | (352) |
| 070 | Other countries/territories | 760,668 | 8,056 | 8,056 | 756,115 | (4,790) |
| 080 | Off-balance sheet exposures | 988,355 | 2,682 | 2,682 | | (769) |
| 090 | Hong Kong | 218,528 | 224 | 224 | | (30) |
| 100 | United Kingdom | 127,378 | 614 | 614 | | (164) |
| 110 | United States | 122,885 | 366 | 366 | | (56) |
| 140 | Other countries/territories | 519,564 | 1,478 | 1,478 | | (519) |
| 150 | **Total at 31 Dec 2024** | **2,784,281** | **26,029** | **26,029** | **1,785,814** | **(10,329)** | **(769)** |

The table below shows the gross carrying amount of loans and advances to non-financial corporations, the related accumulated impairment and the accumulated changes in fair value to credit risk by industry types. The on-balance sheet exposures exclude assets held for sale.

Table 29: Credit quality of loans and advances to non-financial corporations by industry (CQ5)

| | **Gross carrying amount** | | | | **Accumulated impairment** |
|---|---|---|---|---|---|
| | Total \$m | of which: non-performing \$m | of which: defaulted \$m | of which: subject to impairment \$m | \$m |
| **010** | **Agriculture, forestry and fishing** | **8,046** | **341** | **341** | **8,046** | **(108)** |
| **020** | **Mining and quarrying** | **8,832** | **394** | **394** | **8,832** | **(81)** |
| **030** | **Manufacturing** | **95,767** | **1,798** | **1,798** | **94,557** | **(854)** |
| **040** | **Electricity, gas, steam and air conditioning supply** | **20,305** | **302** | **302** | **20,305** | **(177)** |
| **050** | **Water supply** | **2,699** | **44** | **44** | **2,699** | **(20)** |
| **060** | **Construction** | **29,345** | **3,274** | **3,274** | **29,052** | **(1,695)** |
| **070** | **Wholesale and retail trade** | **92,264** | **2,879** | **2,879** | **92,011** | **(1,525)** |
| **080** | **Transport and storage** | **22,782** | **264** | **264** | **22,737** | **(224)** |
| **090** | **Accommodation and food service activities** | **15,299** | **1,660** | **1,660** | **15,291** | **(321)** |
| **100** | **Information and communication** | **23,467** | **411** | **411** | **23,430** | **(239)** |
| **110** | **Financial and insurance activities** | **393** | | | **393** | **(2)** |
| **120** | **Real estate activities** | **64,116** | **6,149** | **6,149** | **64,116** | **(1,463)** |
| **130** | **Professional, scientific and technical activities** | **26,723** | **585** | **585** | **26,429** | **(262)** |
| **140** | **Administrative and support service activities** | **21,719** | **670** | **670** | **21,719** | **(368)** |
| **150** | **Public administration and defence, compulsory social security** | **97** | | | **97** | **(2)** |
| **160** | **Education** | **2,867** | **80** | **80** | **2,867** | **(52)** |
| **170** | **Human health services and social work activities** | **4,095** | **174** | **174** | **4,095** | **(51)** |
| **180** | **Arts, entertainment and recreation** | **1,839** | **93** | **93** | **1,839** | **(31)** |
| **190** | **Other services** | **10,243** | **333** | **333** | **10,232** | **(114)** |
| **200** | **Total at 30 Jun 2025** | **450,898** | **19,451** | **19,451** | **448,747** | **(7,589)** |
| 010 | Agriculture, forestry and fishing | 7,101 | 282 | 282 | 7,101 | (96) |
| 020 | Mining and quarrying | 8,419 | 318 | 318 | 8,419 | (46) |
| 030 | Manufacturing | 89,832 | 1,602 | 1,602 | 88,921 | (943) |
| 040 | Electricity, gas, steam and air conditioning supply | 18,407 | 239 | 239 | 18,339 | (133) |
| 050 | Water supply | 2,963 | 43 | 43 | 2,963 | (23) |
| 060 | Construction | 30,184 | 3,279 | 3,279 | 29,993 | (1,768) |
| 070 | Wholesale and retail trade | 87,428 | 2,989 | 2,989 | 87,203 | (1,595) |
| 080 | Transport and storage | 24,003 | 418 | 418 | 23,956 | (322) |
| 090 | Accommodation and food service activities | 14,795 | 1,611 | 1,611 | 14,715 | (298) |
| 100 | Information and communication | 19,883 | 229 | 229 | 19,850 | (160) |
| 110 | Financial and insurance activities | 270 | | | 270 | (1) |
| 120 | Real estate activities | 61,175 | 5,700 | 5,700 | 61,129 | (964) |
| 130 | Professional, scientific and technical activities | 26,158 | 648 | 648 | 25,878 | (266) |
| 140 | Administrative and support service activities | 20,272 | 739 | 739 | 20,269 | (320) |
| 150 | Public administration and defence, compulsory social security | 87 | | | 87 | |
| 160 | Education | 2,637 | 81 | 81 | 2,637 | (58) |
| 170 | Human health services and social work activities | 4,031 | 184 | 184 | 4,031 | (51) |
| 180 | Arts, entertainment and recreation | 2,065 | 78 | 78 | 2,065 | (35) |
| 190 | Other services | 9,212 | 338 | 338 | 9,194 | (116) |
| **200** | **Total at 31 Dec 2024** | **428,922** | **18,778** | **18,778** | **427,020** | **(7,195)** |

## Risk mitigation

Our approach to granting credit facilities is on the basis of capacity to repay, rather than placing primary reliance on credit risk mitigants. Depending on a customer's standing and the type of product, facilities may be provided unsecured.

Mitigation of credit risk is a key aspect of effective risk management and takes many forms. Our general policy is to promote the use of credit risk mitigation, justified by commercial prudence and capital efficiency. Detailed policies cover the acceptability, structuring and terms relating to the availability of credit risk mitigation, such as in the form of collateral security. These policies, together with the setting of suitable valuation parameters, are subject to regular review to ensure that they are supported by empirical evidence and continue to fulfil their intended purpose.

The table below provides a breakdown of loans and advances and debt securities by different CRM techniques. The on-balance sheet exposures exclude assets held for sale.

Table 30: Credit risk mitigation techniques - overview (CR3)

| | **Total Exposures: secured and unsecured \$m** | **Exposures unsecured: carrying amount \$m** | **Exposures secured: by collateral \$m** | **of which: Exposures secured by collateral \$m** | **of which: Exposures secured by financial guarantees \$m** |
|---|---|---|---|---|---|
| **1** | **Loans and advances** | **1,709,785** | **752,362** | **957,423** | **868,087** | **89,336** |
| | Central banks | 307,779 | 306,366 | 1,413 | 1,357 | 56 |
| | General governments | 10,501 | 6,871 | 3,630 | 3,264 | 366 |
| | Credit Institutions | 174,875 | 61,161 | 113,714 | 113,320 | 394 |
| | Other financial corporations | 300,165 | 105,402 | 194,763 | 185,581 | 9,182 |
| | Non-financial corporations | 443,309 | 221,406 | 221,903 | 143,325 | 78,578 |
| | Households | 473,156 | 51,156 | 422,000 | 421,240 | 760 |
| **2** | **Debt securities** | **550,498** | **511,748** | **38,750** | **38,750** | |
| | Central banks | 24,181 | 24,181 | | | |
| | General governments | 465,006 | 429,388 | 35,618 | 35,618 | |
| | Credit Institutions | 43,023 | 40,119 | 2,904 | 2,904 | |
| | Other financial corporations | 12,878 | 12,766 | 112 | 112 | |
| | Non-financial corporations | 5,410 | 5,294 | 116 | 116 | |
| **3** | **Total at 30 Jun 2025** | **2,260,283** | **1,264,110** | **996,173** | **868,087** | **128,086** |
| 4 | of which: non-performing exposures | 18,039 | 3,756 | 14,283 | 12,591 | 1,692 |
| 5 | of which: defaulted | 18,039 | 3,756 | 14,283 | | |

**Loans and advances (Continued)**

| | | **Total Exposures: secured and unsecured \$m** | **Exposures unsecured: carrying amount \$m** | **Exposures secured: by collateral \$m** | **of which: Exposures secured by collateral \$m** | **of which: Exposures secured by financial guarantees \$m** |
|---|---|---|---|---|---|---|
| 1 | Loans and advances | 1,605,775 | 705,621 | 900,154 | 806,819 | 93,335 |
| 2 | Central banks | 324,486 | 320,865 | 3,621 | 3,567 | 54 |
| 3 | General governments | 11,535 | 6,384 | 5,151 | 4,785 | 366 |
| 4 | Credit Institutions | 139,167 | 51,856 | 87,311 | 87,082 | 229 |
| 5 | Other financial corporations | 258,618 | 70,437 | 188,181 | 179,161 | 9,020 |
| 6 | Non-financial corporations | 421,727 | 206,757 | 214,970 | 138,361 | 76,609 |
| 7 | Households | 450,242 | 49,322 | 400,920 | 393,863 | 7,057 |
| **2** | **Debt securities** | **494,498** | **459,101** | **35,397** | **35,397** | |
| 3 | Central banks | 22,876 | 22,876 | | | |
| 4 | General governments | 416,270 | 384,634 | 31,636 | 31,636 | |
| 5 | Credit Institutions | 38,338 | 34,851 | 3,487 | 3,487 | |
| 6 | Other financial corporations | 12,330 | 12,250 | 80 | 80 | |
| 7 | Non-financial corporations | 4,684 | 4,490 | 194 | 194 | |
| **3** | **Total at 31 Dec 2024** | **2,100,273** | **1,164,722** | **935,551** | **806,819** | **128,732** |
| 4 | of which: non-performing exposures | 16,993 | 3,670 | 13,323 | 11,159 | 2,164 |
| 5 | of which: defaulted | 16,993 | 3,670 | 13,323 | | |

## Standardised approach - credit conversion factor ('CCF') and credit risk mitigation ('CRM') effects (CR4)

The table below shows the split of credit risk exposures under the standardised approach, reflecting the EAD before and after the impact of CRM techniques and credit conversion factors ('CCF'). Securitisation positions are not included in this table.

Table 31: Standardised approach - credit conversion factor ('CCF') and credit risk mitigation ('CRM') effects (CR4)

| | **Exposures before CCF and CRM** | | | | **Exposures post-CCF and CRM** | | | | **RWAS and RWA density** |
|---|---|---|---|---|---|---|---|---|---|---|
| | On-balance sheet amount \$m | Off-balance sheet amount \$m | Total exposure before CRM \$m | On-balance sheet amount \$m | Off-balance sheet amount \$m | Total exposure after CRM \$m | RWAS \$m | RWA density % |
| **Asset classes** | | | | | | | | |
| 1 | Central governments or central banks | 288,631 | 1,343 | 314,825 | 2,628 | 4,456 | 1.4 |
| 2 | Regional governments or local authorities | 3,796 | 147 | 7,160 | 11 | 711 | 9.9 |
| 3 | Public sector entities | 12,351 | 2,227 | 1,918 | 466 | 525 | 22.0 |
| 4 | Multilateral development banks | 21,935 | 477 | 24,848 | 241 | 60 | 0.2 |
| 5 | International organisations | 6,932 | | 6,932 | | | | |
| 6 | Institutions | 1,242 | 2,473 | 1,756 | 2,948 | 1,770 | 37.6 |
| 7 | Corporates | 106,233 | 102,547 | 95,240 | 17,865 | 97,476 | 86.2 |
| 8 | Retail | 28,026 | 61,301 | 21,642 | 319 | 16,280 | 74.1 |
| 9 | Secured by mortgages on immovable property | 54,635 | 1,557 | 54,635 | 377 | 20,123 | 36.6 |
| 10 | Exposures in default | 3,023 | 504 | 2,940 | 170 | 3,866 | 124.4 |
| 11 | Exposures associated with particularly high risk | 356 | 63 | 311 | 13 | 486 | 150.0 |
| 14 | Units or shares in collective investment undertakings | 2,219 | 12 | 2,219 | 6 | 1,799 | 80.9 |
| 15 | Equity | 17,336 | | 17,336 | 38,903 | 224.4 |
| 16 | Other items | 17,002 | 272 | 17,002 | 272 | 11,243 | 65.1 |
| 17 | **Total at 30 Jun 2025** | **563,717** | **172,923** | **568,764** | **25,316** | **197,698** | **33.3** |
| 1 | Central governments or central banks | 298,838 | 1,928 | 321,444 | 3,321 | 4,873 | 1.5 |
| 2 | Regional governments or local authorities | 3,354 | 192 | 6,103 | 15 | 770 | 12.6 |
| 3 | Public sector entities | 8,868 | 249 | 107 | 73 | 68.8 |
| 4 | Multilateral development banks | 17,356 | 476 | 19,593 | 314 | 130 | 0.7 |
| 5 | International organisations | 5,833 | | 5,833 | | | |
| 6 | Institutions | 1,390 | 2,285 | 1,892 | 2,169 | 1,801 | 44.4 |
| 7 | Corporates | 78,859 | 90,033 | 76,381 | 13,569 | 80,622 | 89.6 |
| 8 | Retail | 27,609 | 53,621 | 20,777 | 243 | 15,566 | 74.1 |
| 9 | Secured by mortgages on immovable property | 52,133 | 1,263 | 52,133 | 325 | 19,147 | 36.5 |
| 10 | Exposures in default | 2,775 | 745 | 2,695 | 208 | 3,672 | 126.5 |
| 11 | Exposures associated with particularly high risk | 919 | 52 | 866 | 14 | 1,320 | 150.0 |
| 14 | Collective investment undertakings | 2,279 | 12 | 2,279 | 6 | 2,123 | 92.9 |
| 15 | Equity exposures | 16,460 | | 16,460 | 66 | 37,503 | 226.9 |
| 16 | Other items | 13,319 | 278 | 13,319 | 278 | 9,602 | 70.6 |
| 17 | **Total at 31 Dec 2024** | **529,992** | **151,200** | **539,882** | **20,528** | **177,202** | **31.6** |

# Credit risk approaches

## IRB - Effect on the RWA of credit derivatives used as CRM techniques (CR7)

The table below provides a breakdown of IRB credit risk RWAs before and after credit derivatives CRM effects. The table excludes securitisation positions, equity, corporate slotting exposures and non-credit obligation assets.

Table 32: IRB - Effect on the RWA of credit derivatives used as CRM techniques (CR7)

| | **At 30 Jun 2025** | | | **At 31 Dec 2024** | |
|---|---|---|---|---|---|
| | Pre-credit derivatives RWAS \$m | Actual RWAS \$m | Pre-credit derivatives RWAS \$m | Actual RWAS \$m |
| 1 | Exposures under FIRB | 95,510 | 94,974 | 84,566 | 84,195 |
| 2 | Central governments and central banks | 111 | 111 | 116 | 116 |
| 3 | Institutions | 100 | 100 | 65 | 65 |
| 4 | Corporates | 95,299 | 94,763 | 84,385 | 84,014 |
| 4.1 | of which: SMEs | 4,296 | 4,296 | 3,973 | 3,973 |
| 4.3 | of which: Others | 91,003 | 90,467 | 80,412 | 80,041 |
| 5 | Exposures under AIRB | 361,208 | 360,471 | 348,623 | 347,785 |
| 6 | Central governments and central banks | 57,468 | 57,438 | 53,789 | 53,760 |
| 7 | Institutions | 14,040 | 14,025 | 13,331 | 13,310 |
| 8 | Corporates | 214,387 | 213,695 | 211,584 | 210,796 |
| 8.1 | of which: SMEs | 5,179 | 5,179 | 5,838 | 5,838 |
| 8.2 | of which: Specialised lending | 5,652 | 5,652 | 4,953 | 4,953 |
| 8.3 | of which: Others | 203,556 | 202,864 | 200,793 | 200,005 |
| 9 | Retail | 75,313 | 75,313 | 69,919 | 69,919 |
| 9.1 | of which Retail - SMEs - Secured by immovable property collateral | 125 | 125 | 78 | 78 |
| 9.2 | of which Retail - Non-SMEs - Secured by immovable property collateral | 43,681 | 43,681 | 40,255 | 40,255 |
| 9.3 | of which Retail - Qualifying revolving | 16,510 | 16,510 | 15,566 | 15,566 |
| 9.4 | of which Retail - SMEs - Other | 2,684 | 2,684 | 2,450 | 2,450 |
| 9.5 | of which Retail - Non-SMEs- Other | 12,313 | 12,313 | 11,570 | 11,570 |
| 10 | Total | 456,718 | 455,445 | 433,189 | 431,980 |

## IRB approach - Disclosure of the extent of the use of CRM techniques (CR7-A)

The table below discloses percentage of exposures secured by various CRM techniques, separately for each exposure class in AIRB and FIRB approaches.

Table 33: IRB approach - Disclosure of the extent of the use of CRM techniques (CR7-A)

| | **Credit risk mitigation techniques** | | | | **Credit risk mitigation methods in the calculation of RWAs** |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **Funded credit Protection (FCP)** | | | | | **Unfunded credit Protection (UFCP)** | | | |
| | Part of exposures covered by Other eligible collateral (%) | Part of exposures covered by Other funded credit protection (%) | Part of exposures covered by physical property collateral (%) | Part of exposures covered by financial collateral Total (%) | Part of exposures covered by life insurance policies (%) | Part of exposures covered by guarantees (%) | RWA post-CRM assigned to the obligor exposure class (%) | RWA with substitution effects (\$bn) |
| **AIRB** | | | | | | | | | |
| 1 | Central governments and central banks | 5.1 | 0.1 | | | | | 0.1 | 57.0 | 57.4 |
| 2 | Institutions | 1.8 | 2.6 | | | | | 2.6 | 13.8 | 14.0 |
| 3 | Corporates | 9.5 | 12.4 | 8.7 | 2.2 | 1.5 | 0.2 | 0.2 | 1.0 | 214.3 | 213.8 |
| 3.1 | of which: Corporates - SMEs | 7.6 | 58.5 | 51.6 | 1.6 | 5.3 | 4.4 | 4.4 | 2.8 | 5.2 | 5.2 |
| 3.2 | Corporates - specialised lending | 1.3 | 1.7 | 0.8 | 0.3 | 0.6 | | | 7.6 | 5.7 | 5.7 |
| 3.3 | Corporates - other | 9.8 | 11.8 | 8.1 | 2.2 | 1.5 | 0.2 | 0.2 | 0.7 | 203.4 | 202.9 |
| 4 | Retail | 4.4 | 73.8 | 73.6 | 0.2 | 0.5 | 0.5 | | 2.7 | 75.3 | 75.3 |
| 4.1 | of which: Retail - immovable property SMEs | 0.3 | 99.8 | 86.6 | 13.2 | | | 0.1 | 0.1 | 0.1 |
| 4.2 | Retail - immovable property non-SMEs | 0.1 | 95.9 | 95.9 | | | | 3.8 | 40.2 | 40.2 |
| 4.3 | Retail - qualifying revolving | | | | | | | | 15.6 | 15.6 |
| 4.4 | Retail other SMEs | 0.7 | 0.1 | | 0.1 | | | | 2.7 | 2.7 |
| 4.5 | Retail - other non-SMEs | 6.0 | 64.4 | 3.0 | 6.0 | 0.7 | 0.2 | 0.2 | 1.2 | 12.3 | 12.3 |
| 5 | Total at 30 Jun 2025 | 26.9 | 25.6 | 0.6 | 0.7 | 0.2 | 0.2 | 1.2 | 360.4 | 360.5 |
| **FIRB** | | | | | | | | | |
| 1 | Central governments and central banks | | | | | | | | 0.1 | 0.1 |
| 3 | Corporates | 19.0 | 17.0 | 11.0 | 3.4 | 2.6 | | | 95.1 | 94.8 |
| 3.1 | of which: Corporates - SMEs | 0.4 | 62.8 | 47.0 | 10.0 | 5.8 | | | 4.3 | 4.3 |
| 3.3 | Corporates - other | 19.7 | 15.1 | 9.5 | 3.2 | 2.4 | | | 90.8 | 90.5 |
| 4 | Total at 30 Jun 2025 | 19.0 | 17.0 | 11.0 | 3.4 | 2.6 | | | 95.1 | 95.0 |
| **IRB** | | | | | | | | | |
| | Specialised lending under the slotting approach | | | | | | | | 22.1 | 22.1 |
| | Equity exposures | | | | | | | | 5.5 | 5.5 |

Table 33: IRB approach - Disclosure of the extent of the use of CRM techniques (CR7-A) (continued)

| | **Credit risk mitigation techniques** | | | | | **Credit risk mitigation methods in the calculation of RWAs** |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **Funded credit protection (FCP)** | | | | | **Unfunded credit Protection (UFCP)** | | | |
| | Part of exposures covered by Other eligible collateral (%) | Part of exposures covered by Other funded credit protection (%) | Part of exposures covered by physical property collateral (%) | Part of exposures covered by financial collateral Total (%) | Part of exposures covered by life insurance policies (%) | Part of exposures covered by guarantees (%) | RWA post-CRM assigned to the obligor exposure class (%) | RWA with substitution effects (\$bn) |
| **AIRB** | | | | | | | | | |
| 1 | Central governments and central banks | 5.1 | 0.1 | | | | | 0.1 | 53.4 | 53.8 |
| 2 | Institutions | 0.5 | 1.6 | | | | | 1.6 | 13.0 | 13.3 |
| 3 | Corporates | 9.6 | 12.7 | 9.2 | 2.2 | 1.4 | 0.2 | 0.2 | 1.0 | 211.4 | 210.8 |
| 3.1 | of which: Corporates - SMEs | 6.8 | 63.5 | 56.8 | 1.6 | 5.2 | 4.1 | 4.1 | 0.8 | 5.8 | 5.8 |
| 3.2 | Corporates - specialised lending | 1.2 | 2.1 | 0.9 | 0.4 | 0.9 | | | 9.8 | 5.0 | 5.0 |
| 3.3 | Corporates - other | 9.9 | 11.8 | 8.3 | 2.2 | 1.3 | 0.2 | 0.2 | 0.7 | 200.6 | 200.0 |
| 4 | Retail | 4.0 | 73.1 | 72.9 | 0.3 | 0.5 | 0.5 | | 2.9 | 69.9 | 69.9 |
| 4.1 | of which: Retail immovable property SMEs | 0.3 | 99.3 | 96.3 | 3.0 | | | 0.1 | 0.1 | 0.1 |
| 4.2 | Retail - immovable property non-SMEs | 0.1 | 95.9 | 95.9 | | | | 3.8 | 40.2 | 40.2 |
| 4.3 | Retail - qualifying revolving | | | | | | | | 15.6 | 15.6 |
| 4.4 | Retail other SMEs | 0.4 | 0.4 | | 0.1 | | | | 2.4 | 2.4 |
| 4.5 | Retail - other non-SMEs | 3.0 | 6.0 | 2.6 | 3.0 | 6.9 | 0.1 | 12.3 | 12.3 |
| 5 | Total at 31 Dec 2024 | 5.9 | 26.4 | 25.2 | 0.7 | 0.6 | 0.2 | 0.2 | 1.2 | 347.7 | 347.8 |
| **FIRB** | | | | | | | | | |
| 1 | Central governments and central banks | | | | | | | | 0.1 | 0.1 |
| 3 | Corporates | 21.6 | 17.0 | 11.6 | 3.2 | 2.2 | | | 84.3 | 84.0 |
| 3.1 | of which: Corporates - SMEs | 0.6 | 62.0 | 47.6 | 9.4 | 5.0 | | | 4.0 | 4.0 |
| 3.3 | Corporates - other | 22.6 | 15.1 | 10.1 | 3.0 | 2.1 | | | 80.3 | 80.0 |
| 4 | Total at 31 Dec 2024 | 21.6 | 17.0 | 11.6 | 3.2 | 2.2 | | | 84.3 | 84.2 |
| **IRB** | | | | | | | | | |
| | Specialised lending under the slotting approach | | | | | | | | 22.3 | 22.3 |
| | Equity exposures | | | | | | | | 4.7 | 4.7 |

## Standardised approach - exposures by asset classes and risk weights (CR5)

The table below discloses credit risk exposures under the standardised approach by risk weights, split into exposure class. Securitisation positions are not included in this table.

Table 34: Standardised approach - exposures by asset classes and risk weights (CR5)

| Risk weight ('RW%') | **0% \$bn** | **2% \$bn** | **20% \$bn** | **35% \$bn** | **50% \$bn** | **75% \$bn** | **100% \$bn** | **150% \$bn** | **250% \$bn** | **1250% \$bn** | **Total credit exposure amount (post-CCF and CRM) \$bn** | **of which: un-rated \$bn** |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **Asset classes** | | | | | | | | | | | | |
| 1 | Central governments or central banks | 315.2 | | | 0.1 | | | 1.6 | | | | 317.5 | |
| 2 | Regional governments or local authorities | 6.4 | 0.5 | 0.3 | 0.1 | | | | | | | 7.2 | 0.2 |
| 3 | Public sector entities | 24.8 | 2.3 | 0.3 | | | | 0.1 | | | | 25.1 | |
| 4 | Multilateral development banks | | | | | | | | | | | | |
| 5 | International organisations | 6.9 | | | | | | | | | | 6.9 | |
| 6 | Institutions | 1.8 | 0.2 | 2.1 | | | 0.6 | 4.7 | 2.4 | | | 11.8 | |
| 7 | Corporates | | 16.6 | 0.6 | 4.1 | 0.6 | 90.5 | 1.3 | | | | 113.1 | 63.2 |
| 8 | Retail | | | | 22.0 | | 22.0 | | | | | 44.0 | |
| 9 | Secured by mortgages on immovable property | | 53.6 | | | 1.4 | | | | | | 55.0 | 55.0 |
| 10 | Exposures in default | | | | 1.6 | 1.5 | | | | | | 3.1 | 3.1 |
| 11 | Exposures associated with particularly high risk | | | | | | | 1.6 | 1.5 | | | 3.1 | 0.3 |
| 14 | Units or shares in collective investment undertakings | 0.6 | 0.4 | 0.2 | 0.9 | 0.1 | | | | | | 2.2 | 0.8 |
| 15 | Equity exposures | | | | | | | 2.9 | 14.4 | | | 17.3 | 6.8 |
| 16 | Other items | 0.2 | 7.3 | | | | 9.8 | | | | | 17.3 | 17.3 |
| 17 | **Total at 30 Jun 2025** | **354.1** | **1.8** | **27.2** | **54.2** | **7.2** | **22.0** | **108.3** | **3.1** | **16.1** | **0.1** | **594.1** | **171.2** |
| | **Asset classes** | | | | | | | | | | | | |
| 1 | Central governments or central banks | 322.1 | 0.1 | | 0.7 | 0.2 | 1.7 | | | | | 324.8 | 0.2 |
| 2 | Regional governments or local authorities | 5.3 | 0.2 | 0.5 | 0.1 | | | | | | | 6.1 | 0.4 |
| 3 | Public sector entities | | | 0.1 | | | | | | | | 0.1 | |
| 4 | Multilateral development banks | 19.5 | 0.2 | 0.2 | | | | | | | | 19.9 | |
| 5 | International organisations | 5.8 | | | | | | | | | | 5.8 | |
| 6 | Institutions | 1.1 | 0.1 | 2.2 | 0.7 | | | | | | | 4.1 | 1.8 |
| 7 | Corporates | 10.6 | 0.5 | 2.1 | | 74.8 | 1.9 | | | | | 89.9 | 51.8 |
| 8 | Retail | | | 21.0 | | | 21.0 | | | | | 42.0 | |
| 9 | Secured by mortgages on immovable property | | 51.3 | | 1.2 | | | | | | | 52.5 | 52.5 |
| 10 | Exposures in default | | | | 1.4 | 1.5 | | | | | | 2.9 | 2.9 |
| 11 | Exposures associated with particularly high risk | | | | 0.9 | | | | | | | 0.9 | 0.9 |
| 14 | Units or shares in collective investment undertakings | 0.5 | 0.5 | 0.2 | 0.9 | 0.1 | | | | | | 2.3 | 0.9 |
| 15 | Equity exposures | 2.5 | | | | 14.0 | | | | | | 16.5 | 6.0 |
| 16 | Other items | 0.2 | 4.8 | | | | 8.6 | | | | | 13.6 | 13.6 |
| 17 | **Total at 31 Dec 2024** | **353.4** | **1.1** | **16.3** | **51.8** | **5.6** | **21.0** | **90.9** | **4.4** | **15.8** | **0.1** | **560.4** | **152.0** |

$^1$ We moved a portfolio from the internal ratings-based approach to the standardised approach.

## IRB - Credit risk exposures by portfolio and PD range (CR6)

The table below discloses the detailed key parameters used for the calculation of capital requirements of credit risk exposure under the IRB approach, broken down by exposure class and PD range. The risk parameters within this table do not reflect the application of post-model adjustments ('PMAs'). The table excludes securitisation positions, equity exposures and non-credit obligation assets. The number of obligors disclose the single obligor with multiple PD ratings counted separately for every PD band. We count these on the basis of our exposure to the original counterparty, reported in the first two columns of this table. The disclosures across all PD ranges are modelled LGD. Deferred tax RWAs reported on an IRB approach are not included in this table. Slotting exposures are disclosed in table 36, specialised lending and equity exposures under the simple risk-weight approach (CR10).

Table 35: IRB - Credit risk exposures by portfolio and PD range (CR6)

| PD scale | On-balance sheet \$bn | Off-balance sheet \$bn | Exposure average pre-CCF % | Exposure average CCF and CRM % | Exposure weighted average post-CCF \$bn | Number of obligors | Exposure average LGD % | Exposure weighted average maturity years | Risk weighted supporting factors | Density of risk exposure amount % | Value adjustments and loss provisions \$bn |
|---|---|---|---|---|---|---|---|---|---|---|---|
| **AIRB - Central government and central banks** | | | | | | | | | | | |
| 0.00 to <0.15 | 480.7 | 2.6 | 24.8 | 0.02 | 481.6 | 319 | 43.3 | 2.2 | 40.3 | 8.4 | |
| 0.00 to <0.10 | 468.9 | 1.6 | 36.3 | 0.01 | 471.2 | 179 | 43.3 | 2.2 | 36.2 | 7.7 | |
| 0.10 to <0.15 | 11.8 | 1.0 | 1.3 | 0.13 | 10.4 | 140 | 44.3 | 2.2 | 4.1 | 39.9 | |
| 0.15 to <0.25 | 1.7 | 0.5 | 1.0 | 0.22 | 1.7 | 10 | 44.9 | 1.1 | 0.6 | 36.4 | |
| 0.25 to <0.50 | 1.1 | 16.8 | 0.9 | 0.37 | 1.7 | 12 | 44.8 | 1.4 | 0.5 | 53.9 | |
| 0.50 to <0.75 | 2.5 | 21.7 | 2.5 | 0.63 | 8 | 45.0 | 1.0 | 1.7 | 65.9 | |
| 0.75 to <2.50 | 7.1 | 0.1 | 35.5 | 6.8 | 1.57 | 100 | 44.9 | 1.2 | 6.7 | 98.9 | 0.1 |
| 0.75 to <1.75 | 3.9 | 0.1 | 44.0 | 3.9 | 1.06 | 93 | 44.9 | 1.2 | 3.4 | 87.2 | |
| 1.75 to <2.5 | 3.2 | 30.0 | 2.9 | 2.25 | 7 | 45.0 | 1.2 | 3.3 | 114.3 | 0.1 |
| 2.50 to <10.00 | 1.5 | 0.8 | 73.2 | 1.4 | 4.78 | 16 | 42.7 | 1.2 | 1.9 | 136.6 | 0.1 |
| 2.5 to <5 | 0.8 | 0.5 | 73.3 | 0.9 | 3.26 | 11 | 41.6 | 1.3 | 1.1 | 115.6 | |
| 5 to <10 | 0.7 | 0.3 | 71.5 | 0.5 | 7.85 | 5 | 45.0 | 1.1 | 0.8 | 178.9 | |
| 10.00 to 100.00 | | | | 13.00 | 1 | 45.0 | 1.0 | | 218.1 | |
| 10 to <20 | | | | 13.00 | 1 | 45.0 | 1.0 | | 218.1 | |
| 30.00 to <100.00 | | | | | | | | | | | |
| 100.00 (Default) | 0.1 | | 0.1 | 100.00 | 3 | 7.0 | 4.1 | 61.5 | |
| **Sub-total at 30 Jun 2025** | **494.7** | **4.0** | **24.4** | **0.07** | **495.0** | **469** | **43.4** | **2.1** | **51.7** | **10.4** | **0.1** |
| 0.00 to <0.15 | 447.6 | 2.0 | 31.0 | 0.02 | 448.6 | 295 | 43.3 | 2.1 | 36.7 | 8.2 | |
| 0.00 to <0.10 | 436.6 | 1.5 | 33.5 | 0.01 | 439.0 | 172 | 43.3 | 2.1 | 33.0 | 7.5 | |
| 0.10 to <0.15 | 11.0 | 0.5 | 16.1 | 0.13 | 9.6 | 123 | 45.0 | 2.2 | 3.7 | 38.0 | |
| 0.15 to <0.25 | 1.1 | 0.5 | 1.7 | 1.1 | 0.22 | 10 | 45.1 | 1.1 | 0.4 | 37.4 | |
| 0.25 to <0.50 | 1.5 | 0.2 | 67.7 | 1.3 | 0.37 | 14 | 45.3 | 1.3 | 0.7 | 53.4 | |
| 0.50 to <0.75 | 2.2 | 45.0 | 2.2 | 0.63 | 8 | 45.0 | 1.0 | 1.5 | 65.8 | |
| 0.75 to <2.50 | 6.0 | 0.5 | 84.3 | 6.0 | 1.57 | 103 | 45.0 | 1.2 | 5.9 | 98.2 | 0.1 |
| 0.75 to <1.75 | 3.1 | 0.1 | 49.6 | 3.1 | 0.92 | 92 | 45.0 | 1.3 | 2.6 | 83.6 | 0.1 |
| 1.75 to <2.5 | 2.9 | 0.4 | 89.0 | 2.9 | 2.25 | 11 | 45.0 | 1.2 | 3.3 | 113.6 | |
| 2.50 to <10.00 | 1.4 | 0.3 | 38.9 | 1.2 | 3.65 | 12 | 42.2 | 1.3 | 1.4 | 123.3 | |
| 2.5 to <5 | 1.1 | 0.1 | 23.3 | 1.0 | 3.07 | 9 | 41.8 | 1.3 | 1.2 | 114.9 | |
| 5 to <10 | 0.3 | 0.2 | 73.5 | 0.2 | 7.85 | 3 | 45.0 | 1.5 | 0.2 | 184.1 | |
| 10.00 to <100.00 | 0.9 | 0.1 | 58.6 | 0.3 | 23.01 | 4 | 45.0 | 1.0 | 0.7 | 216.9 | |
| 10 to <20 | 0.3 | 0.3 | 13.00 | 0.3 | 13.01 | 3 | 45.0 | 1.0 | 0.7 | 216.8 | |
| 30.00 to <100.00 | | | | | | | | | | | |
| 100.00 (Default) | 0.2 | 0.1 | 100.00 | 0.2 | 100.00 | 2 | 6.4 | 4.2 | 0.1 | 57.9 | |
| **Sub-total at 31 Dec 2024** | **460.3** | **3.5** | **30.3** | **0.08** | **460.8** | **448** | **43.3** | **2.1** | **47.4** | **10.3** | **0.1** |

## IRB - Credit risk exposures by portfolio and PD range (CR6) (continued)

| PD scale | On-balance sheet \$bn | Off-balance sheet \$bn | Exposure average pre-CCF % | Exposure average CCF and CRM % | Exposure weighted average post-CCF \$bn | Number of obligors | Exposure average LGD % | Exposure weighted average maturity years | Risk weighted supporting factors | Density of risk exposure amount % | Value adjustments and loss provisions \$bn |
|---|---|---|---|---|---|---|---|---|---|---|---|
| **AIRB - Institutions** | | | | | | | | | | | |
| 0.00 to <0.15 | 72.3 | 14.3 | 26.6 | 77.3 | 0.05 | 2,472 | 38.2 | 1.3 | 11.2 | 14.5 | |
| 0.00 to <0.10 | 65.9 | 11.0 | 29.4 | 70.3 | 0.04 | 1,626 | 38.0 | 1.3 | 8.6 | 12.3 | |
| 0.10 to <0.15 | 6.4 | 3.3 | 16.6 | 7.0 | 0.13 | 846 | 40.4 | 1.7 | 2.6 | 37.0 | |
| 0.15 to <0.25 | 1.7 | 1 | 34.0 | 2.0 | 0.22 | 279 | 24.4 | 1.2 | 0.5 | 25.0 | |
| 0.25 to <0.50 | 0.9 | 0.9 | 14.0 | 0.8 | 0.37 | 91 | 49.5 | 1.9 | 0.5 | 66.6 | |
| 0.50 to <0.75 | 1.7 | 0.1 | 19.0 | 1.5 | 0.63 | 73 | 45.2 | 0.6 | 1.0 | 66.6 | |
| 0.75 to <2.50 | 2.2 | 1.8 | 18.1 | 2.4 | 1.14 | 158 | 47.1 | 1.9 | 0.4 | 95.5 | |
| 0.75 to <1.75 | 0.4 | 0.4 | 18.1 | 0.4 | 1.14 | 126 | 47.1 | 1.9 | 0.4 | 95.6 | |
| 1.75 to <2.5 | 1.8 | 1.4 | 2.25 | 32 | 45.0 | 1.0 | 58.2 | |
| 2.50 to 10.00 | 0.3 | 0.1 | 21.7 | 0.3 | 3.13 | 15 | 45.0 | 1.1 | 0.4 | 119.9 | |
| 2.5 to <5 | 0.3 | 0.1 | 34.9 | 0.3 | 3.05 | 13 | 45.0 | 1.0 | 0.4 | 117.1 | |
| 5 to <10 | 0.1 | 0.1 | 21.1 | 0.1 | 7.85 | 2 | 45.0 | 5.0 | 291.2 | |
| 10.00 to 100.00 | | | | 11.19 | 3 | 45.0 | 0.6 | 209.1 | |
| 10 to <20 | | | | 11.19 | 2 | 45.0 | 0.6 | 208.0 | |
| 30.00 to <100.00 | | | | | | | | | | | |
| 100.00 (Default) | 0.1 | | 0.1 | 100.00 | 3 | 45.0 | 1.0 | 248.1 | |
| **Sub-total at 30 Jun 2025** | **79.1** | **18.2** | **26.5** | **82.3** | **0.10** | **3,094** | **38.2** | **1.3** | **14.0** | **17.0** | |
| 0.00 to <0.15 | 66.1 | 14.7 | 26.6 | 71.2 | 0.05 | 2,790 | 38.7 | 1.4 | 11.3 | 15.8 | |
| 0.00 to <0.10 | 58.4 | 10.9 | 25.8 | 62.1 | 0.04 | 1,720 | 38.3 | 1.4 | 8.3 | 13.3 | |
| 0.10 to <0.15 | 7.7 | 3.8 | 28.6 | 9.1 | 0.13 | 1,070 | 41.8 | 1.6 | 3.0 | 33.2 | |
| 0.15 to <0.25 | 1.5 | 1.5 | 25.0 | 2.0 | 0.22 | 145 | 32.0 | 1.4 | 0.5 | 24.3 | |
| 0.25 to <0.50 | 0.4 | 0.5 | 21.9 | 0.4 | 0.37 | 76 | 37.9 | 1.8 | 0.2 | 49.5 | |
| 0.50 to <0.75 | 1.3 | 0.4 | 32.5 | 1.3 | 0.63 | 102 | 44.4 | 0.9 | 0.9 | 73.8 | |
| 0.75 to <2.50 | 2.1 | 2.0 | 25.3 | 2.4 | 1.29 | 153 | 45.3 | 1.6 | 0.4 | 98.2 | |
| 0.75 to <1.75 | 1.8 | 2.0 | 25.4 | 2.3 | 1.05 | 116 | 45.5 | 1.5 | 0.4 | 93.9 | |
| 1.75 to <2.5 | 1.5 | 0.8 | 25.5 | 1.6 | 2.25 | 37 | 41.7 | 4.7 | 211.7 | |
| 2.50 to <10.00 | 1.3 | 0.9 | 26.7 | 1.4 | 4.01 | 786 | 40.8 | 1.7 | 1.2 | 114.9 | |
| 2.5 to <5 | 1.1 | 0.7 | 26.5 | 1.2 | 3.58 | 631 | 39.7 | 1.7 | 1.0 | 83.7 | |
| 5 to <10 | 0.7 | 0.2 | 27.9 | 0.2 | 6.44 | 155 | 47.0 | 1.5 | 0.2 | 117.7 | |
| 10.00 to <100.00 | 0.9 | 0.1 | 24.7 | 0.2 | 22.38 | 101 | 34.7 | 1.1 | 0.2 | 131.3 | |
| 10 to <20 | 0.6 | 0.1 | 25.2 | 0.1 | 14.53 | 87 | 41.7 | 1.0 | 0.1 | 145.2 | |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.1 | | 3.8 | 0.1 | 36.02 | 13 | 22.5 | 1.3 | 0.1 | 106.9 | |
| 100.00 (Default) | 0.2 | | 29.4 | 0.2 | 100.00 | 44 | 38.6 | 1.8 | 0.4 | 197.5 | 0.1 |
| **Sub-total at 31 Dec 2024** | **279.0** | **7.9** | **25.0** | **9.9** | **3.83** | **5,786** | **36.7** | **1.8** | **5.0** | **49.6** | **0.1** |

## IRB - Credit risk exposures by portfolio and PD range (CR6) (continued)

| PD scale | On-balance sheet \$bn | Off-balance sheet \$bn | Exposure average pre-CCF % | Exposure average CCF and CRM % | Exposure weighted average post-CCF \$bn | Number of obligors | Exposure average LGD % | Exposure weighted average maturity years | Risk weighted supporting factors | Density of risk exposure amount % | Value adjustments and loss provisions \$bn |
|---|---|---|---|---|---|---|---|---|---|---|---|
| **AIRB - Corporate - SME** | | | | | | | | | | | |
| 0.00 to <0.15 | 0.1 | 0.3 | 23.8 | 0.2 | 0.10 | 200 | 46.4 | 1.7 | 19.4 | | |
| 0.00 to <0.10 | 0.1 | 0.1 | 26.1 | 0.1 | 0.06 | 46 | 54.7 | 2.1 | 20.4 | | |
| 0.10 to <0.15 | 0.2 | 22.8 | 0.1 | 0.13 | 154 | 40.4 | 1.3 | 18.8 | | |
| 0.15 to <0.25 | 0.2 | 0.8 | 25.0 | 0.6 | 0.22 | 466 | 38.9 | 1.8 | 0.2 | 26.0 | |
| 0.25 to <0.50 | 0.4 | 1.0 | 22.4 | 0.6 | 0.37 | 587 | 42.8 | 1.4 | 0.2 | 36.3 | |
| 0.50 to <0.75 | 0.6 | 0.9 | 23.9 | 0.9 | 0.63 | 532 | 38.8 | 1.9 | 0.4 | 47.0 | |
| 0.75 to <2.50 | 3.8 | 2.9 | 25.5 | 4.5 | 1.56 | 2,087 | 34.0 | 1.9 | 2.6 | 57.5 | |
| 0.75 to <1.75 | 2.6 | 2.2 | 25.3 | 3.3 | 1.31 | 1,544 | 34.5 | 2.0 | 1.9 | 56.2 | |
| 1.75 to <2.5 | 1.2 | 0.7 | 26.2 | 1.2 | 2.25 | 543 | 32.6 | 1.7 | 0.7 | 61.1 | |
| 2.50 to <10.00 | 1.2 | 0.8 | 26.6 | 1.2 | 4.16 | 668 | 43.8 | 1.6 | 1.3 | 101.4 | |
| 2.5 to <5 | 1.0 | 0.6 | 25.9 | 1.0 | 3.65 | 503 | 42.2 | 1.6 | 1.0 | 93.8 | |
| 5 to <10 | 0.2 | 0.2 | 29.2 | 0.2 | 6.46 | 165 | 51.0 | 1.8 | 0.3 | 135.3 | |
| 10.00 to <100.00 | 0.2 | 0.1 | 45.2 | 0.2 | 32.53 | 86 | 33.0 | 1.8 | 0.2 | 117.5 | |
| 10 to <20 | 0.1 | 0.1 | 32.2 | 0.1 | 12.35 | 73 | 41.1 | 2.2 | 0.2 | 152.9 | |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.1 | | 73.3 | 0.1 | 66.26 | 13 | 19.6 | 1.0 | 58.4 | |
| 100.00 (Default) | 0.2 | | 23.9 | 0.2 | 100.00 | 22 | 34.5 | 2.9 | 0.3 | 159.7 | |
| **Sub-total at 30 Jun 2025** | **6.7** | **6.8** | **24.9** | **8.4** | **4.46** | **4,648** | **37.3** | **1.8** | **5.2** | **61.7** | **0.1** |
| 0.00 to <0.15 | 0.1 | 0.4 | 26.4 | 0.3 | 0.09 | 240 | 50.1 | 1.4 | 0.1 | 19.7 | |
| 0.00 to <0.10 | 0.1 | 31.4 | 0.2 | 0.06 | 40 | 59.0 | 1.6 | 0.1 | 22.0 | |
| 0.10 to <0.15 | 0.3 | 24.0 | 0.1 | 0.13 | 200 | 40.2 | 1.3 | 17.0 | |
| 0.15 to <0.25 | 0.4 | 0.9 | 26.1 | 0.6 | 0.22 | 551 | 38.2 | 1.6 | 0.1 | 23.8 | |
| 0.25 to <0.50 | 1.1 | 23.9 | 0.8 | 0.37 | 698 | 40.6 | 1.6 | 0.3 | 35.3 | |
| 0.50 to <0.75 | 0.9 | 23.7 | 0.9 | 0.63 | 645 | 36.3 | 2.0 | 0.3 | 44.0 | |
| 0.75 to <2.50 | 4.7 | 0.1 | 49.7 | 5.5 | 1.56 | 2,721 | 34.3 | 1.9 | 3.2 | 57.3 | |
| 0.75 to <1.75 | 3.9 | 0.1 | 49.7 | 4.8 | 1.28 | 2,008 | 35.0 | 2.0 | 2.2 | 55.2 | |
| 1.75 to <2.5 | 0.8 | 0.1 | 55.1 | 0.2 | 2.25 | 55 | 24.9 | 4.7 | 43.2 | |
| 2.50 to <10.00 | 0.9 | 0.1 | 27.1 | 1.4 | 4.01 | 6,538 | 40.8 | 1.7 | 1.2 | 88.7 | |
| 2.5 to <5 | 0.7 | 0.1 | 28.5 | 1.2 | 3.58 | 631 | 39.7 | 1.7 | 1.0 | 83.7 | |
| 5 to <10 | 0.2 | 0.1 | 29.6 | 0.3 | 6.83 | 155 | 47.0 | 1.5 | 0.2 | 117.7 | |
| 10.00 to <100.00 | 0.1 | 0.1 | 24.7 | 0.2 | 22.38 | 101 | 34.7 | 1.1 | 0.2 | 131.3 | |
| 10 to <20 | 0.1 | 0.1 | 25.2 | 0.1 | 14.53 | 87 | 41.7 | 1.0 | 0.1 | 145.2 | |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.1 | | 3.8 | 0.1 | 36.02 | 13 | 22.5 | 1.3 | 0.1 | 106.9 | |
| 100.00 (Default) | 0.1 | | 16.2 | 0.1 | 100.00 | 44 | 38.6 | 1.8 | 0.4 | 197.5 | 0.1 |
| **Sub-total at 31 Dec 2024** | **23.9** | **7.9** | **25.0** | **9.9** | **3.83** | **5,786** | **36.7** | **1.8** | **5.8** | **59.3** | **0.1** |

## IRB - Credit risk exposures by portfolio and PD range (CR6) (continued)

| PD scale | On-balance sheet \$bn | Off-balance sheet \$bn | Exposure average pre-CCF % | Exposure average CCF and CRM % | Exposure weighted average post-CCF \$bn | Number of obligors | Exposure average LGD % | Exposure weighted average maturity years | Risk weighted supporting factors | Density of risk exposure amount % | Value adjustments and loss provisions \$bn |
|---|---|---|---|---|---|---|---|---|---|---|---|
| **FIRB - Corporate - SME** | | | | | | | | | | | |
| 0.00 to <0.15 | 0.4 | 0.2 | 11.4 | 0.4 | 0.13 | 669 | 40.0 | 2.6 | 0.1 | 27.9 | |
| 0.00 to <0.10 | 0.1 | 0.1 | 26.1 | 0.1 | 0.06 | 2 | 28.4 | 1.7 | 10.5 | | |
| 0.10 to <0.15 | 0.4 | 0.2 | 11.4 | 0.4 | 0.13 | 667 | 40.0 | 2.6 | 0.1 | 28.0 | |
| 0.15 to <0.25 | 1.0 | 0.3 | 9.4 | 1.1 | 0.22 | 1,394 | 38.4 | 2.9 | 0.4 | 36.9 | |
| 0.25 to <0.50 | 1.2 | 0.3 | 6.2 | 1.2 | 0.37 | 1,435 | 38.3 | 2.7 | 0.5 | 45.9 | |
| 0.50 to <0.75 | 1.0 | 0.3 | 16.3 | 1.0 | 0.63 | 1,134 | 38.6 | 2.8 | 0.6 | 60.2 | |
| 0.75 to <2.50 | 2.2 | 0.6 | 8.3 | 2.2 | 1.34 | 2,183 | 38.6 | 2.7 | 1.6 | 74.9 | |
| 0.75 to <1.75 | 1.9 | 0.5 | 7.5 | 1.8 | 1.17 | 1,815 | 38.6 | 2.7 | 1.3 | 72.7 | |
| 1.75 to <2.5 | 0.3 | 0.1 | 12.0 | 0.4 | 2.25 | 368 | 38.4 | 2.8 | 0.3 | 87.0 | |
| 2.50 to <10.00 | 0.6 | 0.1 | 12.6 | 0.6 | 4.57 | 736 | 39.3 | 2.2 | 0.6 | 104.2 | |
| 2.5 to <5 | 0.4 | 0.1 | 13.9 | 0.4 | 3.71 | 448 | 39.4 | 2.2 | 0.4 | 98.7 | |
| 5 to <10 | 0.2 | 0.1 | 40.4 | 0.2 | 6.59 | 155 | 41.6 | 1.9 | 0.2 | 117.2 | |
| 10.00 to <100.00 | 0.3 | 0.1 | 17.7 | 0.2 | 21.05 | 101 | 34.7 | 1.1 | 0.4 | 145.3 | |
| 10 to <20 | 0.2 | 0.1 | 4.1 | 0.2 | 12.53 | 87 | 42.1 | 1.9 | 0.3 | 149.5 | |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.1 | | 3.8 | 0.1 | 36.02 | 13 | 22.5 | 1.3 | 0.1 | 106.9 | |
| 100.00 (Default) | 0.4 | | 19.3 | 0.4 | 100.00 | 274 | 39.5 | 2.2 | 0.1 | 124.4 | |
| **Sub-total at 30 Jun 2025** | **7.1** | **1.8** | **10.1** | **7.1** | **6.99** | **8,046** | **38.7** | **2.7** | **4.3** | **60.8** | **0.2** |
| 0.00 to <0.15 | 0.1 | 0.4 | 26.4 | 0.3 | 0.09 | 240 | 50.1 | 1.4 | 0.1 | 19.7 | |
| 0.00 to <0.10 | 0.1 | 31.4 | 0.2 | 0.06 | 40 | 59.0 | 1.6 | 0.1 | 22.0 | |
| 0.10 to <0.15 | 0.3 | 24.0 | 0.1 | 0.13 | 200 | 40.2 | 1.3 | 17.0 | |
| 0.15 to <0.25 | 0.9 | 26.1 | 0.6 | 0.22 | 551 | 38.2 | 1.6 | 0.1 | 23.8 | |
| 0.25 to <0.50 | 1.1 | 23.9 | 0.8 | 0.37 | 698 | 40.6 | 1.6 | 0.3 | 35.3 | |
| 0.50 to <0.75 | 0.9 | 23.7 | 0.9 | 0.63 | 645 | 36.3 | 2.0 | 0.3 | 44.0 | |
| 0.75 to <2.50 | 1.9 | 0.6 | 18.1 | 1.9 | 1.36 | 2,281 | 38.4 | 2.6 | 1.4 | 73.8 | |
| 0.75 to <1.75 | 1.6 | 0.5 | 18.6 | 1.6 | 1.19 | 2,008 | 38.4 | 2.6 | 1.2 | 71.2 | |
| 1.75 to <2.5 | 0.3 | 0.1 | 22.9 | 0.3 | 2.25 | 465 | 38.2 | 2.9 | 0.2 | 87.5 | |
| 2.50 to <10.00 | 0.7 | 0.2 | 20.6 | 0.6 | 4.09 | 812 | 39.0 | 2.3 | 0.6 | 103.0 | |
| 2.5 to <5 | 0.4 | 0.1 | 22.1 | 0.4 | 3.58 | 495 | 39.5 | 2.4 | 0.4 | 98.2 | |
| 5 to <10 | 0.2 | 0.1 | 41.7 | 0.2 | 6.83 | 317 | 38.2 | 1.9 | 0.2 | 111.4 | |
| 10.00 to <100.00 | 0.9 | 0.1 | 35.9 | 0.2 | 26.17 | 244 | 38.5 | 2.0 | 0.3 | 139.5 | |
| 10 to <20 | 0.7 | 0.1 | 35.9 | 0.1 | 12.33 | 198 | 38.4 | 1.9 | 0.2 | 144.6 | |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.1 | | 3.8 | 0.1 | 36.02 | 13 | 22.5 | 1.3 | 0.1 | 106.9 | |
| 100.00 (Default) | 0.4 | | 28.6 | 0.4 | 100.00 | 297 | 41.8 | 1.8 | 0.2 | 182.1 | |
| **Sub-total at 31 Dec 2024** | **23.9** | **5.0** | **11.5** | **9.9** | **3.83** | **8,498** | **38.6** | **2.7** | **4.0** | **59.3** | **0.2** |

## IRB - Credit risk exposures by portfolio and PD range (CR6) (continued)

| PD scale | On-balance sheet \$bn | Off-balance sheet \$bn | Exposure average pre-CCF % | Exposure average CCF and CRM % | Exposure weighted average post-CCF \$bn | Number of obligors | Exposure average LGD % | Exposure weighted average maturity years | Risk weighted supporting factors | Density of risk exposure amount % | Value adjustments and loss provisions \$bn |
|---|---|---|---|---|---|---|---|---|---|---|---|
| **FIRB - Corporate - SME** | | | | | | | | | | | |
| 0.00 to <0.15 | 0.4 | 0.2 | 11.4 | 0.4 | 0.13 | 669 | 40.0 | 2.6 | 0.1 | 27.9 | |
| 0.00 to <0.10 | 0.1 | 0.1 | 26.1 | 0.1 | 0.06 | 2 | 28.4 | 1.7 | 10.5 | | |
| 0.10 to <0.15 | 0.4 | 0.2 | 11.4 | 0.4 | 0.13 | 667 | 40.0 | 2.6 | 0.1 | 28.0 | |
| 0.15 to <0.25 | 1.0 | 0.3 | 9.4 | 1.1 | 0.22 | 1,394 | 38.4 | 2.9 | 0.4 | 36.9 | |
| 0.25 to <0.50 | 1.2 | 0.3 | 6.2 | 1.2 | 0.37 | 1,435 | 38.3 | 2.7 | 0.5 | 45.9 | |
| 0.50 to <0.75 | 1.0 | 0.3 | 16.3 | 1.0 | 0.63 | 1,134 | 38.6 | 2.8 | 0.6 | 60.2 | |
| 0.75 to <2.50 | 2.2 | 0.6 | 8.3 | 2.2 | 1.34 | 2,183 | 38.6 | 2.7 | 1.6 | 74.9 | |
| 0.75 to <1.75 | 1.9 | 0.5 | 7.5 | 1.8 | 1.17 | 1,815 | 38.6 | 2.7 | 1.3 | 72.7 | |
| 1.75 to <2.5 | 0.3 | 0.1 | 12.0 | 0.4 | 2.25 | 368 | 38.4 | 2.8 | 0.3 | 87.0 | |
| 2.50 to <10.00 | 0.6 | 0.1 | 12.6 | 0.6 | 4.57 | 736 | 39.3 | 2.2 | 0.6 | 104.2 | |
| 2.5 to <5 | 0.4 | 0.1 | 13.9 | 0.4 | 3.71 | 448 | 39.4 | 2.2 | 0.4 | 98.7 | |
| 5 to <10 | 0.2 | 0.1 | 40.4 | 0.2 | 6.59 | 155 | 41.6 | 1.9 | 0.2 | 117.2 | |
| 10.00 to <100.00 | 0.3 | 0.1 | 17.7 | 0.2 | 21.05 | 101 | 34.7 | 1.1 | 0.4 | 145.3 | |
| 10 to <20 | 0.2 | 0.1 | 4.1 | 0.2 | 12.53 | 87 | 42.1 | 1.9 | 0.3 | 149.5 | |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.1 | | 3.8 | 0.1 | 36.02 | 13 | 22.5 | 1.3 | 0.1 | 106.9 | |
| 100.00 (Default) | 0.4 | | 19.3 | 0.4 | 100.00 | 274 | 39.5 | 2.2 | 0.1 | 124.4 | |
| **Sub-total at 30 Jun 2025** | **7.1** | **1.8** | **10.1** | **7.1** | **6.99** | **8,046** | **38.7** | **2.7** | **4.3** | **60.8** | **0.2** |
| 0.00 to <0.15 | 0.1 | 0.4 | 26.4 | 0.3 | 0.09 | 240 | 50.1 | 1.4 | 0.1 | 19.7 | |
| 0.00 to <0.10 | 0.1 | 31.4 | 0.2 | 0.06 | 40 | 59.0 | 1.6 | 0.1 | 22.0 | |
| 0.10 to <0.15 | 0.3 | 24.0 | 0.1 | 0.13 | 200 | 40.2 | 1.3 | 17.0 | |
| 0.15 to <0.25 | 0.9 | 26.1 | 0.6 | 0.22 | 551 | 38.2 | 1.6 | 0.1 | 23.8 | |
| 0.25 to <0.50 | 1.1 | 23.9 | 0.8 | 0.37 | 698 | 40.6 | 1.6 | 0.3 | 35.3 | |
| 0.50 to <0.75 | 0.9 | 23.7 | 0.9 | 0.63 | 645 | 36.3 | 2.0 | 0.3 | 44.0 | |
| 0.75 to <2.50 | 1.9 | 0.6 | 18.1 | 1.9 | 1.36 | 2,281 | 38.4 | 2.6 | 1.4 | 73.8 | |
| 0.75 to <1.75 | 1.6 | 0.5 | 18.6 | 1.6 | 1.19 | 2,008 | 38.4 | 2.6 | 1.2 | 71.2 | |
| 1.75 to <2.5 | 0.3 | 0.1 | 22.9 | 0.3 | 2.25 | 465 | 38.2 | 2.9 | 0.2 | 87.5 | |
| 2.50 to <10.00 | 0.7 | 0.2 | 20.6 | 0.6 | 4.09 | 812 | 39.0 | 2.3 | 0.6 | 103.0 | |
| 2.5 to <5 | 0.4 | 0.1 | 22.1 | 0.4 | 3.58 | 495 | 39.5 | 2.4 | 0.4 | 98.2 | |
| 5 to <10 | 0.2 | 0.1 | 41.7 | 0.2 | 6.83 | 317 | 38.2 | 1.9 | 0.2 | 111.4 | |
| 10.00 to <100.00 | 0.9 | 0.1 | 35.9 | 0.2 | 26.17 | 244 | 38.5 | 2.0 | 0.3 | 139.5 | |
| 10 to <20 | 0.7 | 0.1 | 35.9 | 0.1 | 12.33 | 198 | 38.4 | 1.9 | 0.2 | 144.6 | |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.1 | | 3.8 | 0.1 | 36.02 | 13 | 22.5 | 1.3 | 0.1 | 106.9 | |
| 100.00 (Default) | 0.4 | | 28.6 | 0.4 | 100.00 | 297 | 41.8 | 1.8 | 0.2 | 182.1 | |
| **Sub-total at 31 Dec 2024** | **23.9** | **5.0** | **11.5** | **9.9** | **3.83** | **8,498** | **38.6** | **2.7** | **4.0** | **59.3** | **0.2** |

## IRB - Credit risk exposures by portfolio and PD range (CR6) (continued)

| PD scale | On-balance sheet \$bn | Off-balance sheet \$bn | Exposure average pre-CCF % | Exposure average CCF and CRM % | Exposure weighted average post-CCF \$bn | Number of obligors | Exposure average LGD % | Exposure weighted average maturity years | Risk weighted supporting factors | Density of risk exposure amount % | Value adjustments and loss provisions \$bn |
|---|---|---|---|---|---|---|---|---|---|---|---|
| **AIRB - Corporate - Other** | | | | | | | | | | | |
| 0.00 to <0.15 | 92.5 | 165.0 | 30.5 | 165.9 | 0.07 | 8,373 | 43.2 | 1.7 | 37.3 | 22.5 | 0.1 |
| 0.00 to <0.10 | 65.9 | 112.6 | 31.1 | 116.8 | 0.05 | 4,901 | 42.5 | 1.7 | 21.3 | 18.2 | 0.1 |
| 0.10 to <0.15 | 26.6 | 52.4 | 29.0 | 49.1 | 0.13 | 3,472 | 44.9 | 1.7 | 16.0 | 32.6 | 0.1 |
| 0.15 to <0.25 | 27.6 | 53.7 | 28.6 | 47.1 | 0.22 | 4,294 | 42.8 | 1.7 | 19.4 | 41.2 | 0.1 |
| 0.25 to <0.50 | 23.5 | 43.6 | 24.4 | 35.2 | 0.37 | 4,102 | 41.8 | 1.6 | 18.2 | 51.8 | 0.1 |
| 0.50 to <0.75 | 23.4 | 34.5 | 27.0 | 34.2 | 0.63 | 4,480 | 41.7 | 1.6 | 22.9 | 66.9 | 0.1 |
| 0.75 to <2.50 | 72.5 | 90.6 | 25.7 | 72.5 | 1.34 | 23,949 | 40.5 | 1.7 | 66.4 | 91.6 | 0.4 |
| 0.75 to <1.75 | 48.2 | 58.6 | 25.7 | 60.7 | 1.17 | 17,524 | 41.1 | 1.7 | 54.9 | 90.5 | 0.3 |
| 1.75 to <2.5 | 24.3 | 32.0 | 26.1 | 11.8 | 2.23 | 6,425 | 37.6 | 1.6 | 11.5 | 97.7 | 0.1 |
| 2.50 to <10.00 | 20.6 | 23.8 | 26.2 | 15.3 | 4.20 | 5,962 | 40.9 | 1.6 | 19.7 | 128.7 | 0.3 |
| 2.5 to <5 | 13.9 | 16.8 | 26.4 | 12.1 | 3.57 | 4,400 | 40.8 | 1.5 | 14.7 | 121.1 | 0.2 |
| 5 to <10 | 6.7 | 7.0 | 25.3 | 3.2 | 6.59 | 1,562 | 41.6 | 1.9 | 5.0 | 157.4 | 0.1 |
| 10.00 to <100.00 | 7.2 | 3.6 | 31.0 | 5.6 | 19.23 | 1,002 | 37.3 | 1.9 | 10.3 | 184.1 | 0.4 |
| 10 to <20 | 6.3 | 3.5 | 31.1 | 4.8 | 13.86 | 811 | 35.1 | 2.0 | 8.1 | 171.5 | 0.1 |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.9 | 0.1 | 30.2 | 0.8 | 51.74 | 95 | 51.2 | 1.5 | 2.1 | 261.8 | 0.2 |
| 100.00 (Default) | 7.5 | 1.3 | 42.2 | 7.7 | 100.00 | 2,126 | 38.3 | 1.4 | 8.7 | 111.8 | 2.9 |
| **Sub-total at 30 Jun 2025** | **274.8** | **416.1** | **28.4** | **383.5** | **2.87** | **54,288** | **42.1** | **1.7** | **202.9** | **52.9** | **4.4** |
| 0.00 to <0.15 | 101.7 | 165.6 | 31.3 | 176.1 | 0.07 | 8,592 | 42.5 | 1.8 | 38.5 | 21.8 | 0.1 |
| 0.00 to <0.10 | 72.5 | 111.3 | 32.5 | 123.7 | 0.05 | 4,954 | 40.8 | 1.8 | 21.2 | 17.2 | 0.1 |
| 0.10 to <0.15 | 29.2 | 54.3 | 28.8 | 52.4 | 0.13 | 3,638 | 46.2 | 1.7 | 17.3 | 32.9 | 0.1 |
| 0.15 to <0.25 | 24.9 | 53.3 | 29.1 | 46.3 | 0.22 | 4,131 | 41.7 | 1.7 | 18.5 | 39.9 | |
| 0.25 to <0.50 | 24.4 | 43.5 | 25.4 | 36.3 | 0.37 | 4,126 | 41.4 | 1.6 | 18.4 | 50.7 | 0.1 |
| 0.50 to <0.75 | 25.4 | 32.3 | 25.4 | 32.7 | 0.63 | 4,601 | 41.5 | 1.5 | 21.3 | 65.3 | 0.1 |
| 0.75 to <2.50 | 67.9 | 92.5 | 26.3 | 70.2 | 1.34 | 21,421 | 40.9 | 1.7 | 63.9 | 91.0 | 0.4 |
| 0.75 to <1.75 | 46.1 | 62.4 | 26.6 | 59.7 | 1.17 | 16,390 | 41.1 | 1.7 | 53.4 | 89.3 | 0.1 |
| 1.75 to <2.5 | 21.8 | 30.1 | 24.6 | 10.5 | 2.24 | 5,031 | 39.2 | 1.6 | 10.5 | 100.2 | 0.1 |
| 2.50 to <10.00 | 21.7 | 21.9 | 27.6 | 17.2 | 4.34 | 6,538 | 39.5 | 1.7 | 21.7 | 126.1 | 0.3 |
| 2.5 to <5 | 13.0 | 16.1 | 27.1 | 12.1 | 3.57 | 4,944 | 40.5 | 1.7 | 14.5 | 120.4 | 0.1 |
| 5 to <10 | 8.7 | 5.8 | 29.3 | 5.1 | 6.83 | 1,594 | 37.4 | 1.9 | 3.4 | 132.8 | 0.1 |
| 10.00 to <100.00 | 4.7 | 3.4 | 29.8 | 3.6 | 29.65 | 1,092 | 37.3 | 1.9 | 6.8 | 187.9 | 0.4 |
| 10 to <20 | 3.4 | 3.0 | 28.3 | 2.3 | 14.76 | 874 | 36.0 | 1.7 | 4.0 | 177.0 | 0.1 |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.9 | 0.1 | 38.5 | 0.1 | 36.02 | 13 | 22.5 | 1.3 | 0.1 | 106.9 | |
| 100.00 (Default) | 3.8 | 0.6 | 47.8 | 3.9 | 100.00 | 2,103 | 37.3 | 1.4 | 8.7 | 111.8 | 2.9 |
| **Sub-total at 31 Dec 2024** | **279.0** | **414.0** | **28.9** | **390.9** | **3.02** | **52,604** | **41.6** | **1.7** | **200.0** | **51.2** | **4.4** |

## IRB - Credit risk exposures by portfolio and PD range (CR6) (continued)

| PD scale | On-balance sheet \$bn | Off-balance sheet \$bn | Exposure average pre-CCF % | Exposure average CCF and CRM % | Exposure weighted average post-CCF \$bn | Number of obligors | Exposure average LGD % | Exposure weighted average maturity years | Risk weighted supporting factors | Density of risk exposure amount % | Value adjustments and loss provisions \$bn |
|---|---|---|---|---|---|---|---|---|---|---|---|
| **FIRB - Corporate - SME** | | | | | | | | | | | |
| 0.00 to <0.15 | 0.4 | 0.2 | 11.4 | 0.4 | 0.13 | 669 | 40.0 | 2.6 | 0.1 | 27.9 | |
| 0.00 to <0.10 | 0.1 | 0.1 | 26.1 | 0.1 | 0.06 | 2 | 28.4 | 1.7 | 10.5 | | |
| 0.10 to <0.15 | 0.4 | 0.2 | 11.4 | 0.4 | 0.13 | 667 | 40.0 | 2.6 | 0.1 | 28.0 | |
| 0.15 to <0.25 | 1.0 | 0.3 | 9.4 | 1.1 | 0.22 | 1,394 | 38.4 | 2.9 | 0.4 | 36.9 | |
| 0.25 to <0.50 | 1.2 | 0.3 | 6.2 | 1.2 | 0.37 | 1,435 | 38.3 | 2.7 | 0.5 | 45.9 | |
| 0.50 to <0.75 | 1.0 | 0.3 | 16.3 | 1.0 | 0.63 | 1,134 | 38.6 | 2.8 | 0.6 | 60.2 | |
| 0.75 to <2.50 | 2.2 | 0.6 | 8.3 | 2.2 | 1.34 | 2,183 | 38.6 | 2.7 | 1.6 | 74.9 | |
| 0.75 to <1.75 | 1.9 | 0.5 | 7.5 | 1.8 | 1.17 | 1,815 | 38.6 | 2.7 | 1.3 | 72.7 | |
| 1.75 to <2.5 | 0.3 | 0.1 | 12.0 | 0.4 | 2.25 | 368 | 38.4 | 2.8 | 0.3 | 87.0 | |
| 2.50 to <10.00 | 0.6 | 0.1 | 12.6 | 0.6 | 4.57 | 736 | 39.3 | 2.2 | 0.6 | 104.2 | |
| 2.5 to <5 | 0.4 | 0.1 | 13.9 | 0.4 | 3.71 | 448 | 39.4 | 2.2 | 0.4 | 98.7 | |
| 5 to <10 | 0.2 | 0.1 | 40.4 | 0.2 | 6.59 | 155 | 41.6 | 1.9 | 0.2 | 117.2 | |
| 10.00 to <100.00 | 0.3 | 0.1 | 17.7 | 0.2 | 21.05 | 101 | 34.7 | 1.1 | 0.4 | 145.3 | |
| 10 to <20 | 0.2 | 0.1 | 4.1 | 0.2 | 12.53 | 87 | 42.1 | 1.9 | 0.3 | 149.5 | |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.1 | | 3.8 | 0.1 | 36.02 | 13 | 22.5 | 1.3 | 0.1 | 106.9 | |
| 100.00 (Default) | 0.4 | | 19.3 | 0.4 | 100.00 | 274 | 39.5 | 2.2 | 0.1 | 124.4 | |
| **Sub-total at 30 Jun 2025** | **7.1** | **1.8** | **10.1** | **7.1** | **6.99** | **8,046** | **38.7** | **2.7** | **4.3** | **60.8** | **0.2** |
| 0.00 to <0.15 | 0.1 | 0.4 | 26.4 | 0.3 | 0.09 | 240 | 50.1 | 1.4 | 0.1 | 19.7 | |
| 0.00 to <0.10 | 0.1 | 31.4 | 0.2 | 0.06 | 40 | 59.0 | 1.6 | 0.1 | 22.0 | |
| 0.10 to <0.15 | 0.3 | 24.0 | 0.1 | 0.13 | 200 | 40.2 | 1.3 | 17.0 | |
| 0.15 to <0.25 | 0.9 | 26.1 | 0.6 | 0.22 | 551 | 38.2 | 1.6 | 0.1 | 23.8 | |
| 0.25 to <0.50 | 1.1 | 23.9 | 0.8 | 0.37 | 698 | 40.6 | 1.6 | 0.3 | 35.3 | |
| 0.50 to <0.75 | 0.9 | 23.7 | 0.9 | 0.63 | 645 | 36.3 | 2.0 | 0.3 | 44.0 | |
| 0.75 to <2.50 | 1.9 | 0.6 | 18.1 | 1.9 | 1.36 | 2,281 | 38.4 | 2.6 | 1.4 | 73.8 | |
| 0.75 to <1.75 | 1.6 | 0.5 | 18.6 | 1.6 | 1.19 | 2,008 | 38.4 | 2.6 | 1.2 | 71.2 | |
| 1.75 to <2.5 | 0.3 | 0.1 | 22.9 | 0.3 | 2.25 | 465 | 38.2 | 2.9 | 0.2 | 87.5 | |
| 2.50 to <10.00 | 0.7 | 0.2 | 20.6 | 0.6 | 4.09 | 812 | 39.0 | 2.3 | 0.6 | 103.0 | |
| 2.5 to <5 | 0.4 | 0.1 | 22.1 | 0.4 | 3.58 | 495 | 39.5 | 2.4 | 0.4 | 98.2 | |
| 5 to <10 | 0.2 | 0.1 | 41.7 | 0.2 | 6.83 | 317 | 38.2 | 1.9 | 0.2 | 111.4 | |
| 10.00 to <100.00 | 0.9 | 0.1 | 35.9 | 0.2 | 26.17 | 244 | 38.5 | 2.0 | 0.3 | 139.5 | |
| 10 to <20 | 0.7 | 0.1 | 35.9 | 0.1 | 12.33 | 198 | 38.4 | 1.9 | 0.2 | 144.6 | |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.1 | | 3.8 | 0.1 | 36.02 | 13 | 22.5 | 1.3 | 0.1 | 106.9 | |
| 100.00 (Default) | 0.4 | | 28.6 | 0.4 | 100.00 | 297 | 41.8 | 1.8 | 0.2 | 182.1 | |
| **Sub-total at 31 Dec 2024** | **23.9** | **5.0** | **11.5** | **9.9** | **3.83** | **8,498** | **38.6** | **2.7** | **4.0** | **59.3** | **0.2** |

## IRB - Credit risk exposures by portfolio and PD range (CR6) (continued)

| PD scale | On-balance sheet \$bn | Off-balance sheet \$bn | Exposure average pre-CCF % | Exposure average CCF and CRM % | Exposure weighted average post-CCF \$bn | Number of obligors | Exposure average LGD % | Exposure weighted average maturity years | Risk weighted supporting factors | Density of risk exposure amount % | Value adjustments and loss provisions \$bn |
|---|---|---|---|---|---|---|---|---|---|---|---|
| **FIRB - Corporate - Other** | | | | | | | | | | | |
| 0.00 to <0.15 | 36.4 | 51.6 | 42.8 | 64.4 | 0.09 | 9,354 | 31.1 | 2.0 | 12.8 | 19.8 | |
| 0.00 to <0.10 | 19.7 | 32.1 | 42.3 | 35.8 | 0.06 | 2,979 | 33.0 | 1.9 | 5.5 | 15.5 | |
| 0.10 to <0.15 | 16.7 | 19.5 | 43.6 | 28.6 | 0.13 | 6,375 | 28.8 | 2.1 | 7.3 | 25.3 | |
| 0.15 to <0.25 | 14.1 | 16.6 | 38.3 | 20.4 | 0.22 | 6,323 | 36.7 | 2.0 | 8.2 | 40.2 | |
| 0.25 to <0.50 | 13.3 | 13.5 | 33.7 | 19.1 | 0.37 | 5,544 | 34.9 | 1.9 | 9.4 | 48.9 | |
| 0.50 to <0.75 | 11.2 | 8.1 | 34.5 | 13.5 | 0.63 | 4,856 | 36.3 | 2.1 | 9.1 | 67.2 | 0.1 |
| 0.75 to <2.50 | 32.9 | 24.5 | 38.1 | 33.2 | 1.43 | 40,233 | 36.6 | 2.1 | 30.2 | 91.1 | 0.2 |
| 0.75 to <1.75 | 22.3 | 14.2 | 36.6 | 26.3 | 1.22 | 36,653 | 36.5 | 2.0 | 22.5 | 85.5 | 0.1 |
| 1.75 to <2.5 | 10.6 | 10.3 | 44.8 | 6.9 | 2.25 | 3,580 | 36.8 | 2.4 | 7.7 | 112.5 | 0.1 |
| 2.50 to <10.00 | 9.7 | 8.8 | 49.9 | 11.8 | 4.15 | 5,778 | 39.4 | 2.3 | 16.4 | 139.3 | 0.2 |
| 2.5 to <5 | 7.0 | 7.2 | 51.4 | 9.4 | 3.55 | 4,263 | 39.9 | 2.5 | 13.0 | 137.9 | 0.1 |
| 5 to <10 | 2.7 | 1.6 | 40.4 | 2.4 | 6.52 | 1,515 | 37.3 | 1.7 | 3.4 | 145.0 | 0.1 |
| 10.00 to <100.00 | 2.3 | 0.9 | 45.7 | 2.1 | 16.34 | 1,097 | 41.8 | 1.8 | 4.4 | 208.2 | 0.2 |
| 10 to <20 | 2.0 | 0.7 | 44.8 | 1.8 | 12.34 | 811 | 35.1 | 2.0 | 3.8 | 171.5 | 0.1 |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.3 | 0.2 | 58.4 | 0.3 | 45.05 | 115 | 39.6 | 1.2 | 0.6 | 209.5 | 0.1 |
| 100.00 (Default) | 3.8 | 0.6 | 47.8 | 3.9 | 100.00 | 1,660 | 41.2 | 1.7 | 1.6 | 111.8 | 2.9 |
| **Sub-total at 30 Jun 2025** | **274.8** | **416.1** | **28.4** | **383.5** | **2.87** | **54,288** | **42.1** | **1.7** | **202.9** | **52.9** | **4.4** |
| 0.00 to <0.15 | 101.7 | 165.6 | 31.3 | 176.1 | 0.07 | 8,592 | 42.5 | 1.8 | 38.5 | 21.8 | 0.1 |
| 0.00 to <0.10 | 72.5 | 111.3 | 32.5 | 123.7 | 0.05 | 4,954 | 40.8 | 1.8 | 21.2 | 17.2 | 0.1 |
| 0.10 to <0.15 | 29.2 | 54.3 | 28.8 | 52.4 | 0.13 | 3,638 | 46.2 | 1.7 | 17.3 | 32.9 | 0.1 |
| 0.15 to <0.25 | 24.9 | 53.3 | 29.1 | 46.3 | 0.22 | 4,131 | 41.7 | 1.7 | 18.5 | 39.9 | |
| 0.25 to <0.50 | 24.4 | 43.5 | 25.4 | 36.3 | 0.37 | 4,126 | 41.4 | 1.6 | 18.4 | 50.7 | 0.1 |
| 0.50 to <0.75 | 25.4 | 32.3 | 25.4 | 32.7 | 0.63 | 4,601 | 41.5 | 1.5 | 21.3 | 65.3 | 0.1 |
| 0.75 to <2.50 | 67.9 | 92.5 | 26.3 | 70.2 | 1.34 | 21,421 | 40.9 | 1.7 | 63.9 | 91.0 | 0.4 |
| 0.75 to <1.75 | 46.1 | 62.4 | 26.6 | 59.7 | 1.17 | 16,390 | 41.1 | 1.7 | 53.4 | 89.3 | 0.1 |
| 1.75 to <2.5 | 21.8 | 30.1 | 24.6 | 10.5 | 2.24 | 5,031 | 39.2 | 1.6 | 10.5 | 100.2 | 0.1 |
| 2.50 to <10.00 | 21.7 | 21.9 | 27.6 | 17.2 | 4.34 | 6,538 | 39.5 | 1.7 | 21.7 | 126.1 | 0.3 |
| 2.5 to <5 | 13.0 | 16.1 | 27.1 | 12.1 | 3.57 | 4,944 | 40.5 | 1.7 | 14.5 | 120.4 | 0.1 |
| 5 to <10 | 8.7 | 5.8 | 29.3 | 5.1 | 6.83 | 1,594 | 37.4 | 1.9 | 3.4 | 132.8 | 0.1 |
| 10.00 to <100.00 | 4.7 | 3.4 | 29.8 | 3.6 | 29.65 | 1,092 | 37.3 | 1.9 | 6.8 | 187.9 | 0.4 |
| 10 to <20 | 3.4 | 3.0 | 28.3 | 2.3 | 14.76 | 874 | 36.0 | 1.7 | 4.0 | 177.0 | 0.1 |
| 20 to <30 | | | | | | | | | | | |
| 30.00 to <100.00 | 0.9 | 0.1 | 38.5 | 0.1 | 36.02 | 13 | 22.5 | 1.3 | 0.1 | 106.9 | |
| 100.00 (Default) | 3.8 | 0.6 | 47.8 | 3.9 | 100.00 | 2,103 | 37.3 | 1.4 | 8.7 | 111.8 | 2.9 |
| **Sub-total at 31 Dec 2024** | **279.0** | **414.0** | **28.9** | **390.9** | **3.02** | **52,604** | **41.6** | **1.7** | **200.0** | **51.2** | **4.4** |

## IRB - Credit risk exposures by portfolio and PD range (CR6) (continued)

| PD scale | On-balance sheet \$bn | Off-balance sheet \$bn | Exposure average pre-CCF % | Exposure average CCF and CRM % | Exposure weighted average post-CCF \$bn | Number of obligors | Exposure average LGD % | Exposure weighted average maturity years | Risk weighted supporting factors | Density of risk exposure amount % | Value adjustments and loss provisions \$bn |
|---|---|---|---|---|---|---|---|---|---|---|---|
| **FIRB - Corporate - Other** | | | | | | | | | | | |
| 0.00 to <0.15 | 36.4 | 51.6 | 42.8 | 64.4 | 0.09 | 9,354 | 31.1 | 2.0 | 12.8 | 19.8 | |
| 0.00 to <0.10 | 19.7 | 32.1 | 42.3 | 35.8 | 0.06 | 2,979 | 33.0 | 1.9 | 5.5 | 15.5 | |
| 0.10 to <0.15 | 16.7 | 19.5 | 43.6 | 28.6 | 0.13 | 6,375 | 28.8 | 2.1 | 7.3 | 25.3 | |
| 0.15 to <0.25 | 14.1 | 16.6 | 38.3 | 20.4 | 0.22 | 6,323 | 36.7 | 2.0 | 8.2 | 40.2 | |
| 0.25 to <0.50 | 13.3 | 13.5 | 33.7 | 19.1 | 0.37 | 5,544 | 34.9 | 1.9 | 9.4 | 48.9 | |
| 0.50 to <