Half year to
Year
€m
31 Dec 2024
31 Dec 20239
2024
20239
Continuing operations
Net interest income
667
1,147
1,498
2,191
Net fee income
613
563
1,214
1,194
Net income/(expense) from financial instruments held for trading or managed on a fair value basis
423
122
484
259
Other operating income/(expense)
47
49
153
76
Net operating income before change in expected credit losses and other credit impairment charges
1,750
1,881
3,349
3,720
Change in expected credit losses and other credit impairment charges
(79)
(125)
(97)
(145)
Total operating expenses
(1,184)
(1,111)
(2,322)
(2,250)
Profit/(loss) before tax
487
645
930
1,325
Tax expense
(289)
(176)
(406)
(346)
Profit/(loss) after tax in respect of continuing operations
198
469
524
979
Profit/(loss) after tax in respect of discontinued operations
34
(1,505)
79
(71)
Profit/(loss) after tax for the period
232
(1,036)
603
908
Profit/(loss) attributable to shareholders of the parent company
217
(1,050)
568
883
Profit/(loss) attributable to non-controlling interests
15
14
35
25
Profit/(loss) for the period by global business
Continuing Operations
Wealth and Personal Banking
Commercial Banking
Markets and Securities Services
Global Banking
Global Banking and Markets Other
Corporate Centre
Total
€m
Year 2024
Net operating income before change in expected credit losses and other credit impairment charges
445
1,363
801
774
31
(65)
3,349
o/w net interest income/(expense)
175
946
225
412
(12)
(248)
1,498
Change in expected credit losses and other credit impairment charges
7
(113)
—
14
—
(5)
(97)
Total operating expenses
(389)
(665)
(714)
(428)
(61)
(65)
(2,322)
Profit/(loss) before tax
63
585
87
360
(30)
(135)
930
Year 20239
Net operating income before change in expected credit losses and other credit impairment charges
615
1,444
803
764
33
61
3,720
o/w net interest income/(expense)
383
1,049
183
453
19
104
2,191
Change in expected credit losses and other credit impairment charges
5
(88)
1
(63)
(1)
1
(145)
Total operating expenses
(435)
(594)
(730)
(380)
(23)
(88)
(2,250)
Profit/(loss) before tax
185
762
74
321
9
(26)
1,325
Business disposals
On 23 September 2024, HSBC Continental Europe reached an agreement to sell its private banking business in Germany to BNP Paribas. The planned sale, which remains subject to governmental approvals and works council consultation, is expected to be completed in the second half of 2025.
On 20 December 2024, HSBC Continental Europe signed a Memorandum of Understanding regarding the potential sale of its life insurance business in France, HSBC Assurances Vie (France), to Matmut Société d’Assurance Mutuelle. The completion of the transaction, which remains subject to consultation processes with respective works councils and regulatory and competition approvals, is expected to take place in the second half of 2025.
Accounting policy for classifying non-current assets or disposal groups as ‘held for sale’
HSBC Continental Europe classifies non-current assets or disposal groups (including assets and liabilities) as held for sale when their carrying amounts will be recovered principally through sale rather than through continuing use. To be classified as held for sale, the asset or disposal group must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets or disposal groups, and the sale must be highly probable.
At 31 December 2024, HSBC Continental Europe judged that the sale of its private banking business in Germany and the sale of its life insurance business in France were highly probable to complete in the second half of 2025. As such, and in accordance with IFRS 5, the disposal groups that included €25.5bn of assets and €24.7bn of liabilities were classified as held for sale and re-measured at the lower of the carrying amount and fair value less costs to sell.
The life insurance business in France also met the criteria of discontinued operations classification and presentation under IFRS 5, and accordingly, the profit/(loss) of the discontinued operations has been reported separately in the income statement.
Upon being classified as held for sale in 2023, retail banking operations in France (sold on 1 January 2024) were judged to have met the criteria of discontinued operations classification and presentation under IFRS 5 for the 2023 comparatives.
HSBC Continental Europe
Headquartered in Paris, HSBC Continental Europe is an indirectly held subsidiary of HSBC Holdings plc. HSBC Continental Europe principally comprises, in addition to its banking, insurance and asset management activities based in France, the business activities of 10 European branches (in Belgium, Czech Republic, Germany, Ireland, Italy, Luxembourg, Netherlands, Poland, Spain and Sweden) and two banking subsidiaries in Continental Europe (in Luxembourg and Malta). HSBC Continental Europe’s mission is to serve both customers in Continental Europe for their needs worldwide and customers in other Group countries for their needs in Continental Europe.
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 58 countries and territories. With assets of US$3,017bn at 31 December 2024, HSBC is one of the world’s largest banking and financial services organisations.
1 See appendix for details on business disposals
2 In respect of continuing operations in accordance with IFRS 5 (see appendix)
3 Change in expected credit losses and other credit impairment charges divided by customer loans outstanding at the end of the period.
4 Computed in respect of the EU Delegated act
5 Computed in respect of CRR II (Regulation EU 2019/876)
6 LCR, NSFR and the solvency ratio of the life insurance subsidiary are unaudited
7 In 2024, HSBC Continental Europe served its customers through the following business lines: ‘Commercial Banking’, ‘Global Banking’, ‘Markets and Securities Services’ and ‘Wealth and Personal Banking’. The 2024 results per business line are presented on this basis. Following the announcement by the HSBC Group of a new organisational structure in October 2024, and effective 1 January 2025, HSBC Continental Europe will operate through two new business lines: ‘Corporate and Institutional Banking’ covering the clients and products previously served by Commercial Banking, Global Banking, Markets and Securities Services, and ‘International Wealth and Premier Banking’ replacing Wealth and Personal Banking.
8 See appendix
9 In compliance with IFRS 5 standards, the comparatives have been represented to reflect discontinued operations related to the planned sale of the life insurance business in France. This also includes discontinued operations related the sale of the retail banking operations in France.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250219980634/en/
Sophie Ricord [email protected] +33 (0) 6 89 10 17 62
Raphaële-Marie Hirsch [email protected] +33 (0) 7 64 57 35 55
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Publish date : 2025-02-19 09:59:00
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