HSBC Continental Europe, a subsidiary of HSBC Holdings PLC (“HSBC Group”), today signed a Memorandum of Understanding Business Business in France.
On December 31, 2024, the portfolio had an excellent balance of € 6.7 billion.
On January 1, 2025, the portfolio was rebuilt by the Hold-To-Collect to hold-To-Collect-and-sell, and in the first quarter of 2025, the HSBC Group recognized a profit of 1.2 billion euros. The loss of fair value in the paperwork resulted in a decrease of approximately 0.2 points. CET1 of the HSBC team, which amounted to 14.7% on March 31, 20253.
When completing the possible transaction:
- The damage recognized in other total income will be recycled in the results of no further impact on the HSBC CET1 ratio.
- The weighted risk assets (“RWAS”) of the portfolio will be restored, resulting in an intangible benefit to the HSBC CET1 ratio.
The possible transaction is expected to be completed in the fourth quarter of 2025, without prejudice to appropriate information and consultation procedures with corresponding project councils. HSBC Continental Europe will work closely with the consortium buyer to allow a smooth transition.
Economic impact of transaction on HSBC Continental Europe:
- From the reconstruction of the portfolio on January 1, 2025 by Hold-To-Collect to keep the Continental Europe, the Continental Europe recognized in the first trimester of 2025, a fair value of € 1.2 billion in fair value was about 2 billion value. Units Reduction of HSBC Continental Europe, which amounted to 18.8% in December 31, 20245.
- Upon completion of the possible transaction, the damage recognized in other total income will be recycled in the state of effect without a further impact on the HSBC Continental Europe CET1 ratio. The portfolio RWAS6 will be excluded and it is estimated that the HSBC Continental Europe CET1 index will increase by approximately 0.3 percentage points.