HSBC UK Bank plc
Annual Report and Accounts 2025
HSBC UK Bank plc Annual Report and Accounts 2025 |
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Contents |
Strategic report | |
Financial review | |
Report of the Directors | |
Risk review | |
Corporate Governance Report | |
Directors' Report Disclosures table | |
Statement of Directors’ Responsibilities in respect of the financial statements | |
Independent auditors' report to the member of HSBC UK Bank plc | |
Financial statements | |
Other information | |
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Profit before tax £5.6 bn (2024: £5.6 bn) | Revenue £10.5bn (2024: £ 10.0bn) | Expected credit losses and other credit impairment charges £539m (2024: £315m) | ||
Operating Expenses £ 4.3bn (2024: £4.0bn) | Loans and advances to customers £ 231.2bn (2024: £217.6bn) | Customer accounts1 £ 288.8bn (2024: £280.4bn) | ||
Risk-weighted assets £117.5bn (2024: £110.4bn) | Common equity tier 1 capital ratio 13.2% (2024: 13.6%) | Return on average tangible equity 19.2% (2024: 20.2%) |
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Risk | Description | |
Externally driven | ||
Geopolitical and macroeconomic risk | ~ | Our operations and portfolios are exposed to risks arising from political instability, civil unrest and military conflict, which could lead to disruption of our operations, physical risk to our staff and/or physical damage to our assets. We are also subject to macroeconomic risks, which may drive changes to our income growth and asset quality. Heightened geopolitical and macroeconomic risk globally, including uncertainty in international trade policy, is subject to close monitoring and review. |
Credit risk | } | Our lending portfolios continue to be exposed to the potential impacts of ongoing geopolitical and macroeconomic risks, such as volatile tariffs, interruptions in trade flows and decreased demand owing to increased costs. Our credit portfolios remain resilient despite the volatility in the credit risk environment. As the UK labour market weakens, we continue to support customers who may experience financial vulnerability. |
Evolving regulatory environment risk | ~ | The regulatory risk environment is increasingly complex, with ongoing focus by regulators to improve outcomes for banks’ customers, particularly vulnerable ones, as well as the orderly and transparent operation of financial markets. Other regulatory priorities include operational resilience (which includes cyber risk and AI, resolvability, prudential requirements, financial reporting and data, ESG, conduct, as well as sound risk and financial crime risk management practices. We continue to monitor regulatory and wider industry developments closely, engaging with regulators as appropriate. |
Financial crime risk | ~ | We are exposed to financial crime risk from our customers, staff and third-parties engaging in criminal activity. The financial crime risk environment is heightened due to increasingly complex geopolitical challenges, the macroeconomic outlook, the complex and dynamic nature of sanctions and export control compliance, evolving financial crime regulations, rapid technological developments, an increasing number of national data privacy requirements and the increasing sophistication of fraud. As a result, we will continue to face the possibility of regulatory enforcement and reputational risk. |
Cyber threat and unauthorised access to systems | ~ | We face increased risks of service disruption and data loss arising from technology failures and increased malicious activities, including both internal or external cyber threats. We continue to monitor changes to the technology and threat landscape. This includes those arising from ongoing geopolitical and macroeconomic developments, as well as potential vulnerabilities within our technology supply chains. We operate a continuous improvement programme to help support the resilience and stability of technology operations and counter a fast-evolving and heightened cyber threat environment. |
Environmental, social and governance risks | ~ | We are subject to ESG risks, including in relation to climate change, nature and human rights. These risks have increased due to diverging national and political agendas, a more complex and prescriptive regulatory environment, as well as increasing frequency of severe weather events across the globe. Financial institutions’ actions and investment decisions in respect of ESG matters continue to be subject to heightened scrutiny by stakeholders. Failure to meet these evolving expectations may have financial and non- financial impacts, including reputational, legal and regulatory compliance risks. |
Digital currencies and disintermediation risk | } | There remains increased focus on Central Bank Digital Currency ('CBDC') and decentralised finance, as organisations around the world consult, issue design studies and pilots. All economies developing a CBDC are doing so by using the existing banking intermediary networks and infrastructure. The cryptocurrency and stablecoin ecosystems have seen extremely volatile prices with signs of contagion beyond these markets. While we do not expect cryptocurrencies to move from being a speculative asset, stablecoins have, however, seen significant and rapid developments and will continue to evolve globally over the next 12 months. This may circumvent a range of services the bank provides. |
Internally driven | ||
People risk | ~ | We are exposed to risks associated with employee retention and talent availability, the evolving skills requirements of our workforce, and compliance with employment laws and regulations. Voluntary attrition rates are stable, but failure to manage these risks may impact the delivery of our strategic objectives or lead to regulatory sanctions or legal claims, and the risks are heightened during the implementation of organisational change. |
IT systems infrastructure and service resilience | } | Enhancing operation resilience across the complex HSBC UK IT estate remains a strategic priority. Efforts to modernise and simplify technology architecture are central to help mitigate resilience vulnerabilities and minimise risk to critical business services. The ongoing adoption of cloud infrastructure helps to further support compliance objectives by seeking to improve scalability and resilience in line with regulatory expectations. Developments in technology, including Generative Artificial Intelligence ('GenAI'), challenge us to continue to innovate with new digital capabilities and evolve our products, to attract, retain and best serve our customers. Along with opportunities, new technology can introduce risks and disruption. |
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Risk | Description | |
Internally driven (continued) | ||
Model risk | } | Model risk arises whenever business decision making includes reliance on models. We use models in both financial and non- financial contexts, and across various business applications. Evolving regulatory requirements and enhanced expectations continue to drive changes in how model risk is managed throughout the banking industry, with particular focus on capital and credit loss models. New technologies, including GenAI, drive the need for enhanced model risk controls. |
Conduct and customer detriment | } | Whilst Consumer Duty is now integrated into our policies and practices to help support good customer outcomes, inadequate management of our Conduct agenda could result in poor customer outcomes and expose HSBC UK to reputational and compliance risks. We continue to seek to improve our reporting MI across products and customer journeys, particularly for our vulnerable customers. |
Data risk | } | We use data to serve our customers and run our operations, often in real-time within digital experiences and processes. If our data is not accurate and timely, our ability to serve customers, operate with resilience or meet regulatory requirements could be impacted. We seek to ensure that non-public data is kept confidential, and that we comply with the growing number of regulations that govern data privacy and cross-border movement of data. |
Third-party risk | ~ | We procure goods and services from a range of third parties. In the current macroeconomic and geopolitical climate, the risk of service disruption in our supply chains is elevated, driven by an industry-wide increase in supply chain cyber threats. We continue to seek to strengthen our controls, oversight and risk management policies and processes to select and manage third parties, including our third parties’ own supply chains, particularly for key activities that could affect our operational resilience. |
Strategic Execution risk | ~ | Successful execution of our strategy enables us to help address the swiftly changing needs of our customers and stakeholders. We are committed to enhancing the effectiveness of strategic execution risk controls and monitoring. This will help us minimise disruptions during a period of heightened execution risk, driven by the complexity and scale of ongoing strategic, regulatory and technological change. |
~ | Risk heightened during 2025 |
} | Risk remained at the same level as 2024 |
Ä | Risk decreased during 2025 |
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Year ended | ||
31 Dec 2025 | 31 Dec 2024 | |
Reported results | ||
Revenue (£m)1 | 10,468 | 9,979 |
Profit before tax (£m)2 | 5,619 | 5,647 |
Profit after tax (£m) | 4,102 | 4,139 |
Profit attributable to the shareholder (£m) | 4,097 | 4,134 |
Net interest margin (%) | 2.63 | 2.56 |
Cost efficiency ratio (%)2 | 41.2 | 40.3 |
Alternative performance measures | ||
Expected credit losses and other credit impairment charges as % of average gross loans and advances to customers (%) | 0.24 | 0.15 |
Return on average ordinary shareholder's equity2 (%) | 15.8 | 16.5 |
Return on average tangible equity 2,6 (%) | 19.2 | 20.2 |
At | ||
31 Dec 2025 | 31 Dec 2024 | |
Balance sheet | ||
Total assets (£m) | 355,930 | 340,877 |
Net loans and advances to customers (£m) | 231,223 | 217,604 |
Customer accounts (£m) | 288,756 | 280,366 |
Average interest-earning assets (£m) | 328,837 | 316,007 |
Loans and advances to customers as % of customer accounts (%) | 80.1 | 77.6 |
Total shareholders' equity (£m) | 28,241 | 25,911 |
Tangible ordinary shareholders equity (£m) | 21,149 | 19,351 |
Capital, leverage and liquidity | ||
Common equity tier 1 capital ratio (%)2,3,4 | 13.2 | 13.6 |
Total capital ratio (%)3,4 | 18.6 | 18.6 |
Risk-weighted assets3,4 (£m) | 117,463 | 110,423 |
Leverage ratio3,4 (%) | 5.6 | 5.8 |
High-quality liquid assets (liquidity value) (£m)4 | 93,670 | 91,348 |
Liquidity coverage ratio (%)4,5 | 175 | 190 |
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Summary consolidated income statement for the year ended | ||
Audited | Year ended | |
31 Dec 2025 | 31 Dec 2024 | |
£m | £m | |
Net interest income | 8,650 | 8,084 |
Net fee income | 1,286 | 1,308 |
Net income from financial instruments held for trading or managed on a fair value basis | 430 | 454 |
Other operating income | 102 | 133 |
Net operating income before change in expected credit losses and other credit impairment charges | 10,468 | 9,979 |
Change in expected credit losses and other credit impairment charges | (539) | (315) |
Net operating income | 9,929 | 9,664 |
Total operating expenses | (4,310) | (4,017) |
Operating profit | 5,619 | 5,647 |
Profit before tax | 5,619 | 5,647 |
Tax expense | (1,517) | (1,508) |
Profit for the year | 4,102 | 4,139 |
Profit attributable to shareholder | 4,097 | 4,134 |
Profit attributable to non-controlling interests | 5 | 5 |
Net interest income | ||
Year ended | ||
31 Dec 2025 | 31 Dec 2024 | |
£m | £m | |
Interest income | 14,860 | 14,789 |
Interest expense | (6,210) | (6,705) |
Net interest income | 8,650 | 8,084 |
Average interest-earning assets (AIEA) | 328,837 | 316,007 |
% | % | |
Gross interest yield1 | 4.52 | 4.68 |
Less: Gross interest payable1 | (2.36) | (2.69) |
Net interest spread 2 | 2.16 | 1.99 |
Net interest margin 3 | 2.63 | 2.56 |
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Reported profit before tax and balance sheet data for the year ended | ||||||
At 31 Dec 2025 | Retail Banking and Wealth | Commercial Banking | Corporate and Institutional Banking | Private Bank | Corporate Centre | Total |
£m | £m | £m | £m | £m | £m | |
Net operating income/(expense) before change in expected credit losses and other credit impairment charges | 4,740 | 5,315 | 162 | 275 | (24) | 10,468 |
– external | 4,584 | 4,946 | 374 | 186 | 378 | 10,468 |
– inter-segment | 156 | 369 | (212) | 89 | (402) | — |
– of which: net interest income | 4,263 | 4,373 | 5 | 142 | (133) | 8,650 |
Change in expected credit losses and other credit impairment charges | (258) | (269) | — | (12) | — | (539) |
Net operating income/(expense) | 4,482 | 5,046 | 162 | 263 | (24) | 9,929 |
Total operating income/(expenses) | (2,563) | (1,622) | (39) | (161) | 75 | (4,310) |
Operating profit | 1,919 | 3,424 | 123 | 102 | 51 | 5,619 |
Profit before tax | 1,919 | 3,424 | 123 | 102 | 51 | 5,619 |
% | % | % | % | % | % | |
Cost efficiency ratio | 54.1 | 30.5 | 24.1 | 58.5 | 312.5 | 41.2 |
Balance sheet information | £m | £m | £m | £m | £m | £m |
Loans and advances to customers (net) | 150,400 | 76,239 | — | 4,785 | (201) | 231,223 |
Customer accounts | 173,847 | 106,348 | — | 9,307 | (746) | 288,756 |
At 31 Dec 2024 | ||||||
Net operating income/(expense) before change in expected credit losses and other credit impairment charges | 4,389 | 5,199 | 159 | 252 | (20) | 9,979 |
– external | 4,083 | 4,974 | 389 | 132 | 401 | 9,979 |
– inter-segment | 306 | 225 | (230) | 120 | (421) | — |
– of which: net interest income | 3,810 | 4,250 | (2) | 141 | (115) | 8,084 |
Change in expected credit losses and other credit impairment charges | (44) | (269) | — | (2) | — | (315) |
Net operating income/(expense) | 4,345 | 4,930 | 159 | 250 | (20) | 9,664 |
Total operating expenses | (2,369) | (1,512) | (45) | (167) | 76 | (4,017) |
Operating profit | 1,976 | 3,418 | 114 | 83 | 56 | 5,647 |
Profit before tax | 1,976 | 3,418 | 114 | 83 | 56 | 5,647 |
% | % | % | % | % | % | |
Cost efficiency ratio | 54.0 | 29.1 | 28.3 | 66.3 | 380.0 | 40.3 |
Balance sheet information | £m | £m | £m | £m | £m | £m |
Loans and advances to customers (net) | 143,228 | 70,025 | — | 4,528 | (177) | 217,604 |
Customer accounts | 170,773 | 101,853 | — | 8,100 | (360) | 280,366 |
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Summary consolidated balance sheet as at | ||
31 Dec 2025 | 31 Dec 2024 | |
£m | £m | |
Total assets | 355,930 | 340,877 |
– cash and balances at central banks | 40,369 | 52,276 |
– financial assets mandatory measured at fair value through profit and loss | 175 | 174 |
– derivatives | 167 | 298 |
– loans and advances to banks | 6,636 | 7,263 |
– loans and advances to customers | 231,223 | 217,604 |
– reverse repurchase agreements – non-trading | 21,560 | 11,776 |
– financial investments | 41,638 | 37,801 |
– other assets | 14,162 | 13,685 |
Total liabilities | 327,669 | 314,906 |
– deposits by banks | 7,709 | 11,144 |
– customer accounts | 288,756 | 280,366 |
– repurchase agreements – non-trading | 6,276 | 420 |
– derivatives | 162 | 107 |
– debt securities in issue | 3,019 | 2,044 |
– other liabilities | 21,747 | 20,825 |
Total equity | 28,261 | 25,971 |
– total shareholders’ equity1 | 28,241 | 25,911 |
– non-controlling interests | 20 | 60 |
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Description of risks – banking operations | ||
Risks | Arising from | Measurement, monitoring and management of risk |
Credit risk (see page 23) | ||
Credit risk is the risk of financial loss if a customer or counterparty fails to meet an obligation under a contract. | Credit risk arises principally from direct lending, trade finance and leasing business, but also from certain other products such as guarantees and derivatives. | Credit risk is: – measured as the amount that could be lost if a customer or counterparty fails to make repayments; – monitored using various internal risk management measures and within limits approved by individuals within a framework of delegated authorities; and – managed through a risk control framework that seeks to outline clear and consistent policies, principles and guidance for risk managers; and by setting limits and appetite across our businesses, portfolios or sectors. |
Treasury risk (see page 53) | ||
Treasury Risk is the risk of having insufficient capital, liquidity or funding resources to meet financial obligations and satisfy regulatory requirements, including the risk of adverse impact on earnings or capital due to structural and transactional foreign exchange exposures and changes in market interest rates, and including the financial risks arising from historic and current provision of pensions and other post-employment benefits to staff and their dependants. | Treasury risk arises from changes to the respective resources and risk profiles driven by customer behaviour, management decisions or the external environment. | Treasury risk is: – measured through risk appetite and more granular limits, set to provide an early warning of increasing risk, minimum ratios of relevant regulatory metrics, and metrics to monitor the key risk drivers impacting treasury resources; – monitored and projected against appetites and by using operating plans based on strategic objectives together with stress and scenario testing; and – managed through control of resources in conjunction with risk profiles, strategic objectives and cashflows. |
Market risk (see page 58) | ||
Market risk is the risk of an adverse financial impact on trading activities arising from changes in market parameters such as interest rates, foreign exchange rates, asset prices, volatilities, correlations and credit spreads. | Market risk arises from both trading portfolios and non-trading portfolios. Market risk for trading portfolios is discussed in the Market risk section on page 58. Market risk for non-trading portfolios is discussed in the Treasury risk section on page 54. | Market risk is: – measured using sensitivities, value at risk ('VaR') and stress testing, giving a detailed picture of potential gains and losses for a range of market movements and scenarios, as well as tail risks over specified time horizons; – monitored using VaR, stress testing and other measures; and – managed using risk limits approved by the RMM. |
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Description of risks – banking operations (continued) | ||
Risks | Arising from | Measurement, monitoring and management of risk |
Climate risk (see page 59) | ||
Climate risk relates to the financial and non-financial impacts that may arise as a result of climate change and the move to a net zero economy. | Climate risk can materialise through: – physical risk, which arises from the increased frequency and severity of extreme weather events, such as hurricanes and floods, or chronic gradual shifts in weather patterns or rises in the sea level; – transition risk, which arises from the process of moving to a net zero economy, including changes in government policy and legislation, technology, market demand, and reputational implications triggered by a change in stakeholder expectations, action or inaction; and – the risk of greenwashing, which arises from the act of knowingly or unknowingly making inaccurate, unclear, misleading, or unsubstantiated claims regarding sustainability to stakeholders. | Climate risk is: – measured using risk metrics and scenario testing; – monitored using risk appetite statements; – managed through adherence to risk appetite thresholds, through specific policies, and through enhancements to processes and development of tools; and – this includes the development of product controls to manage the risk of greenwashing and the development of portfolio steering capabilities to manage our net zero ambitions. |
Resilience risk (see page 59) | ||
Resilience risk is the risk of sustained and significant business disruption, causing the inability to provide critical services to our customers, affiliates, and counterparties. | Resilience risk arises from failures or inadequacies in processes, people, systems or external events. | Resilience risk is: – measured using a range of metrics and against our agreed risk appetite; – monitored through oversight of enterprise processes, risks, controls and strategic change programmes; and – managed by continuous monitoring and thematic reviews. |
Regulatory compliance risk (see page 60) | ||
Regulatory compliance risk is the risk associated with breaching our duty to clients and other counterparties, inappropriate market conduct (including unauthorised trading) and breaching related financial services regulatory standards. | Regulatory compliance risk arises from the failure to observe relevant laws, codes, rules and regulations, potentially resulting in adverse market or customer outcomes, fines, penalties and reputational harm. | Regulatory compliance risk is: – assessed and measured with reference to risk appetite, identified metrics, incident assessments, regulatory feedback and the judgement of our Regulatory Compliance teams; – monitored against the first line of defence risk and control assessments and testing, alongside the outcome of the second line of defence monitoring and control assurance activities, as well as internal and external audits and regulatory inspections; – managed by establishing and communicating appropriate policies and procedures, training employees accordingly and monitoring activities to help ensure compliance; and – proactive risk and control remediation efforts are undertaken when necessary. |
Financial crime risk (see page 60) | ||
Financial crime risk is the risk that HSBC UK’s products and services will be exploited for criminal activity. This includes fraud, bribery and corruption, tax evasion and the facilitation of tax evasion, sanctions and export control violations and evasion, money laundering, terrorist financing and proliferation financing. | Financial crime risk arises from day-to- day banking operations involving customers, third parties and employees. | Financial crime risk is: – measured by reference to risk appetite, identified metrics, incident assessments, regulatory feedback and the judgement of, and assessment by, our financial crime teams; – monitored against the first line of defence risk and control assessments, and the results of the monitoring and control assurance activities of the second line of defence functions and the results of internal and external audits and regulatory inspections; and – managed by seeking to establish and communicate appropriate policies and procedures, training employees and monitoring activity to help embed them. Proactive risk control and/or remediation work is undertaken where required. |
Model risk (see page 61) | ||
Model risk is the risk of the potential for adverse consequences from model errors or the inappropriate use of modelled outputs to inform business decisions. | Model risk arises in both financial and non-financial contexts whenever business decision making includes reliance on models. | Model risk is: – measured by reference to model performance tracking and the output of detailed technical reviews and regulatory feedback, with key metrics including model review statuses and findings; – monitored against model risk appetite statements, insight from the independent validations completed by the MRM team; and – managed by creating and communicating appropriate policies, procedures and guidance, training colleagues in their application, and supervising their adoption to help ensure operational effectiveness. |
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Credit quality classification | |||||
Debt securities and other bills | Wholesale lending | Retail lending | |||
External credit rating | Internal credit rating1 | 12-month Regulatory probability of default % | Internal credit rating | 12-month probability- weighted PD %2 | |
Quality classification | |||||
Strong | A- and above | CRR1 to CRR2 | 0 – 0.169 | Band 1 and 2 | 0 – <=0.5 |
Good | BBB+ to BBB- | CRR3 | 0.170–0.740 | Band 3 | >0.5 – <=1.5 |
Satisfactory | BB+ to B and unrated | CRR4 to CRR5 | 0.741–4.914 | Band 4 and 5 | >1.5 – <=20 |
Sub-standard | B- to C | CRR6 to CRR8 | 4.915–99.999 | Band 6 | >20 – <100 |
Credit-impaired | Default | CRR9 to CRR10 | 100 | Band 7 | 100 |
Quality classification definitions – ‘Strong’ exposures demonstrate a strong capacity to meet financial commitments, with negligible or low PD. – ‘Good’ exposures demonstrate a good capacity to meet financial commitments, with low default risk. – ‘Satisfactory’ exposures require closer monitoring and demonstrate an average to fair capacity to meet financial commitments, with moderate default risk. – ‘Sub-standard’ exposures require varying degrees of special attention and default risk is of greater concern. – ‘Credit-impaired’ exposures have been assessed as described on Note 1.2(h) on the financial statements. |
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Summary of financial instruments to which the impairment requirements in IFRS 9 are applied | ||||
The group | At 31 Dec 2025 | At 31 Dec 2024 | ||
Gross carrying/ nominal amount | Allowance for ECL1 | Gross carrying/ nominal amount | Allowance for ECL1 | |
£m | £m | £m | £m | |
Loans and advances to customers at amortised cost | 232,736 | (1,513) | 219,092 | (1,488) |
Loans and advances to banks at amortised cost | 6,636 | — | 7,265 | (2) |
Other financial assets measured at amortised cost | 84,064 | (8) | 83,327 | (8) |
– cash and balances at central banks | 40,369 | — | 52,276 | — |
– reverse repurchase agreements – non-trading | 21,560 | — | 11,776 | — |
– financial investments | 19,112 | (1) | 16,323 | (1) |
– prepayments, accrued income and other assets2 | 3,023 | (7) | 2,952 | (7) |
Total gross carrying amount on-balance sheet | 323,436 | (1,521) | 309,684 | (1,498) |
Loans and other credit related commitments | 79,771 | (69) | 74,475 | (99) |
Financial guarantees | 1,197 | (11) | 1,046 | (3) |
Total nominal amount off-balance sheet3 | 80,968 | (80) | 75,521 | (102) |
404,404 | (1,601) | 385,205 | (1,600) | |
Fair value | Memorandum allowance for ECL4 | Fair value | Memorandum allowance for ECL4 | |
£m | £m | £m | £m | |
Debt instruments measured at 'FVOCI' | 22,526 | — | 21,478 | (1) |
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Summary of financial instruments to which the impairment requirements in IFRS 9 are applied | ||||
(Audited) | ||||
At 31 Dec 2025 | At 31 Dec 2024 | |||
Gross carrying/ nominal amount | Allowance for ECL1 | Gross carrying/ nominal amount | Allowance for ECL1 | |
The bank | £m | £m | £m | £m |
Loans and advances to customers at amortised cost | 220,405 | (1,335) | 207,469 | (1,282) |
Loans and advances to banks at amortised cost | 13,325 | — | 13,072 | (2) |
Other financial assets measured at amortised cost | 83,822 | (5) | 83,236 | (6) |
– cash and balances at central banks | 40,368 | — | 52,275 | — |
– reverse repurchase agreements – non-trading | 21,560 | — | 11,776 | — |
– financial investments | 18,923 | (1) | 16,119 | (1) |
– prepayments, accrued income and other assets2 | 2,971 | (4) | 3,066 | (5) |
Total gross carrying amount on-balance sheet | 317,552 | (1,340) | 303,777 | (1,290) |
Loans and other credit related commitments | 62,842 | (62) | 57,254 | (94) |
Financial guarantees | 1,194 | (12) | 1,038 | (3) |
Total nominal amount off-balance sheet3 | 64,036 | (74) | 58,292 | (97) |
381,588 | (1,414) | 362,069 | (1,387) | |
Fair value | Memorandum allowance for ECL4 | Fair value | Memorandum allowance for ECL4 | |
£m | £m | £m | £m | |
Debt instruments measured at 'FVOCI' | 22,526 | — | 21,478 | (1) |
Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 31 December 2025 | ||||||||||||
Gross carrying/nominal amount1 | Allowance for ECL | ECL coverage % | ||||||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | % | % | % | % | |
Loans and advances to customers at amortised cost | 210,641 | 18,642 | 3,453 | 232,736 | (284) | (477) | (752) | (1,513) | 0.1 | 2.6 | 21.8 | 0.7 |
– personal | 142,951 | 10,823 | 895 | 154,669 | (149) | (235) | (191) | (575) | 0.1 | 2.2 | 21.3 | 0.4 |
– corporate and commercial | 59,346 | 7,633 | 2,500 | 69,479 | (127) | (240) | (508) | (875) | 0.2 | 3.1 | 20.3 | 1.3 |
– non-bank financial institutions | 8,344 | 186 | 58 | 8,588 | (8) | (2) | (53) | (63) | 0.1 | 1.1 | 91.4 | 0.7 |
Loans and advances to banks at amortised cost | 6,636 | — | — | 6,636 | — | — | — | — | — | — | — | — |
Other financial assets measured at amortised cost | 83,957 | 78 | 29 | 84,064 | (1) | (3) | (4) | (8) | — | 3.8 | 13.8 | — |
Loan and other credit-related commitments | 77,089 | 2,480 | 202 | 79,771 | (33) | (16) | (20) | (69) | — | 0.6 | 9.9 | 0.1 |
– personal | 41,165 | 600 | 32 | 41,797 | (11) | (4) | — | (15) | — | 0.7 | — | — |
– corporate and commercial | 31,687 | 1,763 | 170 | 33,620 | (20) | (12) | (20) | (52) | 0.1 | 0.7 | 11.8 | 0.2 |
– financial | 4,237 | 117 | — | 4,354 | (2) | — | — | (2) | — | — | — | — |
Financial guarantee and similar contracts | 1,127 | 33 | 37 | 1,197 | — | — | (11) | (11) | — | — | 29.7 | 0.9 |
– personal | 303 | — | — | 303 | — | — | — | — | — | — | — | — |
– corporate and commercial | 563 | 33 | 37 | 633 | — | — | (11) | (11) | — | — | 29.7 | 1.7 |
– financial | 261 | — | — | 261 | — | — | — | — | — | — | — | — |
31 Dec 2025 | 379,450 | 21,233 | 3,721 | 404,404 | (318) | (496) | (787) | (1,601) | 0.1 | 2.3 | 21.2 | 0.4 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
27 |
Stage 2 days past due analysis at 31 December 2025 | ||||||||||||
(Audited) | ||||||||||||
Gross carrying amount | Allowance for ECL | ECL coverage % | ||||||||||
Stage 2 | of which: | of which: | of which: | Stage 2 | of which: | of which: | of which: | Stage 2 | of which: | of which: | of which: | |
Up-to- date | 1 to 29 DPD1 | 30 and > DPD1 | Up-to- date | 1 to 29 DPD1 | 30 and > DPD1 | Up-to- date | 1 to 29 DPD1 | 30 and > DPD1 | ||||
£m | £m | £m | £m | £m | £m | £m | £m | % | % | % | % | |
Loans and advances to customers at amortised cost: | 18,642 | 18,208 | 274 | 160 | (477) | (412) | (35) | (30) | 2.6 | 2.3 | 12.8 | 18.8 |
– personal | 10,823 | 10,534 | 176 | 113 | (235) | (181) | (28) | (26) | 2.2 | 1.7 | 15.9 | 23.0 |
– corporate and commercial | 7,633 | 7,488 | 98 | 47 | (240) | (229) | (7) | (4) | 3.1 | 3.1 | 7.1 | 8.5 |
– non-bank financial institutions | 186 | 186 | — | — | (2) | (2) | — | — | 1.1 | 1.1 | — | — |
Other financial assets measured at amortised cost | 78 | 78 | — | — | (3) | (3) | — | — | 3.8 | 3.8 | — | — |
Summary of credit risk (excluding debt instruments measured at FVOCI) by stage distribution and ECL coverage by industry sector at 31 December 2024 | ||||||||||||
(Audited) | ||||||||||||
Gross carrying/nominal amount1 | Allowance for ECL | ECL coverage % | ||||||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | % | % | % | % | |
Loans and advances to customers at amortised cost | 180,408 | 35,152 | 3,532 | 219,092 | (275) | (565) | (648) | (1,488) | 0.2 | 1.6 | 18.3 | 0.7 |
– personal | 121,438 | 24,971 | 857 | 147,266 | (117) | (245) | (169) | (531) | 0.1 | 1.0 | 19.7 | 0.4 |
– corporate and commercial | 51,144 | 9,858 | 2,638 | 63,640 | (150) | (315) | (448) | (913) | 0.3 | 3.2 | 17.0 | 1.4 |
– non-bank financial institutions | 7,826 | 323 | 37 | 8,186 | (8) | (5) | (31) | (44) | 0.1 | 1.5 | 83.8 | 0.5 |
Loans and advances to banks at amortised cost | 7,263 | — | 2 | 7,265 | — | — | (2) | (2) | — | — | 100.0 | — |
Other financial assets measured at amortised cost | 83,160 | 136 | 31 | 83,327 | (4) | (2) | (2) | (8) | — | 1.5 | 6.5 | — |
Loan and other credit-related commitments | 70,280 | 3,810 | 385 | 74,475 | (26) | (28) | (45) | (99) | — | 0.7 | 11.7 | 0.1 |
– personal | 40,412 | 345 | 38 | 40,795 | (5) | — | (2) | (7) | — | — | 5.3 | — |
– corporate and commercial | 24,866 | 3,249 | 334 | 28,449 | (20) | (28) | (42) | (90) | 0.1 | 0.9 | 12.6 | 0.3 |
– financial | 5,002 | 216 | 13 | 5,231 | (1) | — | (1) | (2) | — | — | 7.7 | — |
Financial guarantee and similar contracts | 877 | 161 | 8 | 1,046 | — | — | (3) | (3) | — | — | 37.5 | 0.3 |
– personal | 306 | 7 | — | 313 | — | — | — | — | — | — | — | — |
– corporate and commercial | 380 | 121 | 8 | 509 | — | — | (3) | (3) | — | — | 37.5 | 0.6 |
– financial | 191 | 33 | — | 224 | — | — | — | — | — | — | — | — |
At 31 Dec 2024 | 341,988 | 39,259 | 3,958 | 385,205 | (305) | (595) | (700) | (1,600) | 0.1 | 1.5 | 17.7 | 0.4 |
Stage 2 days past due analysis at 31 December 2024 | ||||||||||||
Gross carrying amount | Allowance for ECL | ECL coverage % | ||||||||||
Stage 2 | of which: | of which: | of which: | Stage 2 | of which: | of which: | of which: | Stage 2 | of which: | of which: | of which: | |
Up-to- date | 1 to 29 DPD1 | 30 and > DPD1 | Up-to- date | 1 to 29 DPD1 | 30 and > DPD1 | Up-to- date | 1 to 29 DPD1 | 30 and > DPD1 | ||||
£m | £m | £m | £m | £m | £m | £m | £m | % | % | % | % | |
Loans and advances to customers at amortised cost: | 35,152 | 34,612 | 363 | 177 | (565) | (509) | (30) | (26) | 1.6 | 1.5 | 8.3 | 14.7 |
– personal | 24,971 | 24,640 | 214 | 117 | (245) | (201) | (23) | (21) | 1.0 | 0.8 | 10.7 | 17.9 |
– corporate and commercial | 9,858 | 9,649 | 149 | 60 | (315) | (303) | (7) | (5) | 3.2 | 3.1 | 4.7 | 8.3 |
– non-bank financial institutions | 323 | 323 | — | — | (5) | (5) | — | — | 1.5 | 1.5 | — | — |
Other financial assets measured at amortised cost | 136 | 136 | — | — | (2) | (2) | — | — | 1.5 | 1.5 | — | — |
HSBC UK Bank plc Annual Report and Accounts 2025 |
28 |
Loans and advances to customers and banks1 | ||||||||
At 31 Dec 2025 | ||||||||
Loans and advances to customers | Loans and advances to banks at amortised cost | Total stage 2 | ||||||
Personal | of which: | Corporate and commercial | Non-bank financial institutions | |||||
first lien mortgage | credit cards | other personal lending | ||||||
£m | £m | £m | £m | £m | £m | £m | £m | |
Quantitative | 10,672 | 9,240 | 898 | 534 | 3,405 | 137 | — | 14,214 |
Qualitative | 143 | 28 | 82 | 33 | 4,181 | 49 | — | 4,373 |
of which: forbearance | 73 | 28 | 15 | 30 | 275 | — | — | 348 |
30 DPD backstop | 8 | 4 | 2 | 2 | 47 | — | — | 55 |
Total gross carrying amount | 10,823 | 9,272 | 982 | 569 | 7,633 | 186 | — | 18,642 |
Quantitative | (224) | (25) | (137) | (62) | (152) | (1) | — | (377) |
Qualitative | (9) | — | (8) | (1) | (87) | — | — | (96) |
of which: forbearance | (1) | — | — | (1) | (6) | — | — | (7) |
30 DPD backstop | (2) | — | (1) | (1) | (1) | (1) | — | (4) |
Total allowance for ECL | (235) | (25) | (146) | (64) | (240) | (2) | — | (477) |
ECL coverage % | 2.2 | 0.3 | 14.9 | 11.2 | 3.1 | 1.1 | — | 2.6 |
At 31 Dec 2024 | ||||||||
Quantitative | 23,222 | 21,991 | 615 | 616 | 7,320 | 304 | — | 30,846 |
Qualitative | 1,748 | 1,690 | 29 | 29 | 2,479 | 19 | — | 4,246 |
of which: forbearance | 65 | 10 | 28 | 27 | 184 | 3 | — | 252 |
30 DPD backstop | 1 | — | 1 | — | 59 | — | — | 60 |
Total gross carrying amount | 24,971 | 23,681 | 645 | 645 | 9,858 | 323 | — | 35,152 |
Quantitative | (239) | (38) | (136) | (65) | (240) | (5) | — | (484) |
Qualitative | (6) | (4) | (1) | (1) | (71) | — | — | (77) |
of which: forbearance | (1) | — | — | (1) | (4) | — | — | (5) |
30 DPD backstop | — | — | — | — | (4) | — | — | (4) |
Total allowance for ECL | (245) | (42) | (137) | (66) | (315) | (5) | — | (565) |
ECL coverage % | 1.0 | 0.2 | 21.2 | 10.2 | 3.2 | 1.5 | — | 1.6 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
29 |
‘Maximum exposure to credit risk’ table The following table presents our maximum exposure before taking account of any collateral held or other credit enhancements (unless such enhancements meet accounting offsetting requirements). The table excludes financial instruments whose carrying amount best represents the net exposure to credit risk; and it excludes equity securities as they are not subject to credit risk. For the financial assets recognised on the balance sheet, the maximum exposure to credit risk equals their carrying amount and is net of the allowance for ECL; for financial guarantees and similar contracts granted, it is the maximum amount that we would have to pay if the guarantees were called upon. For loan commitments and other credit-related commitments, it is generally the full amount of the committed facilities. The offset in the table relates to amounts where there is a legally enforceable right of offset in the event of counterparty default and where, as a result, there is a net exposure for credit risk purposes. However, as there is no intention to settle these balances on a net basis under normal circumstances, they do not qualify for net presentation for accounting purposes. No offset has been applied to off-balance sheet collateral. In the case of derivatives, the offset column also includes collateral received in cash and other financial assets. |
Maximum exposure to credit risk | ||||||
At 31 Dec 2025 | At 31 Dec 2024 | |||||
Maximum exposure | Offset | Net | Maximum exposure | Offset | Net | |
The group | £m | £m | £m | £m | £m | £m |
Loans and advances to customers held at amortised cost | 231,223 | (4,505) | 226,718 | 217,604 | (3,310) | 214,294 |
– personal | 154,094 | — | 154,094 | 146,735 | — | 146,735 |
– corporate and commercial | 68,604 | (4,425) | 64,179 | 62,727 | (3,231) | 59,496 |
– non-bank financial institutions | 8,525 | (80) | 8,445 | 8,142 | (79) | 8,063 |
Loans and advances to banks at amortised cost | 6,636 | — | 6,636 | 7,263 | — | 7,263 |
Other financial assets held at amortised cost | 84,205 | — | 84,205 | 83,458 | — | 83,458 |
– cash and balances at central banks | 40,369 | — | 40,369 | 52,276 | — | 52,276 |
– reverse repurchase agreements – non-trading | 21,560 | — | 21,560 | 11,776 | — | 11,776 |
– financial investments | 19,111 | — | 19,111 | 16,322 | — | 16,322 |
– other assets | 3,165 | — | 3,165 | 3,084 | — | 3,084 |
Derivatives | 167 | (124) | 43 | 298 | (295) | 3 |
Total on-balance sheet exposure to credit risk | 322,231 | (4,629) | 317,602 | 308,623 | (3,605) | 305,018 |
Total off-balance sheet | 86,117 | — | 86,117 | 80,900 | — | 80,900 |
– financial guarantees and similar contracts | 3,980 | — | 3,980 | 3,440 | — | 3,440 |
– loan and other credit-related commitments | 82,137 | — | 82,137 | 77,460 | — | 77,460 |
Total | 408,348 | (4,629) | 403,719 | 389,523 | (3,605) | 385,918 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
30 |
Central scenario | ||
Average 2026–20301 | Average 2025–20291 | |
UK% | UK% | |
GDP growth rate (annual average growth rate, %) | 1.4 | 1.5 |
Unemployment rate (%) | 4.7 | 4.5 |
House price index (annual average growth rate, %) | 2.5 | 3.2 |
Inflation rate (annual average growth rate, %) | 2.2 | 2.1 |
Central bank policy rate (annual average, %) | 3.6 | 3.9 |
Consensus Upside scenario best outcome | ||
2026 Q1- 2030 Q4 | 2025 Q1- 2029 Q4 | |
GDP growth rate (%, start-to-peak)1 | 11.0 (4Q30) | 11.3 (4Q29) |
Unemployment rate (%, min)2 | 3.2 (4Q27) | 3.5 (3Q26) |
House price index (%, start-to-peak)1 | 20.0 (4Q30) | 24.2 (4Q29) |
Inflation rate (YoY % change)3 | 3.5 (1Q26) | 1.4 (1Q26) |
Central bank policy rate (%)3 | 3.9 (1Q26) | 3.6 (4Q25) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
31 |
Consensus Downside scenario | ||
2026 Q1- 2030 Q4 | 2025 Q1- 2029 Q4 | |
GDP growth rate (%, start-to-trough)1 | (0.2) (2Q27) | (1.0) (4Q26) |
Unemployment rate (%, max)2 | 6.2 (4Q26) | 6.1 (4Q25) |
House price index (%, start-to-trough)1 | (4.1) (1Q27) | (4.5) (1Q26) |
Inflation rate (YoY % change)3 | 1.3 (3Q26) | 3.4 (4Q25) |
Central bank policy rate (%)3 | 2.2 (3Q28) | 5.0 (1Q25) |
Downside 2 scenario worst outcome | ||
2026 Q1- 2030 Q4 | 2025 Q1- 2029 Q4 | |
GDP growth rate (%, start-to-trough)1 | (5.3) (2Q27) | (9.1) (2Q26) |
Unemployment rate (%, max)2 | 8.9 (2Q27) | 8.4 (2Q26) |
House price index (%, start-to-trough)1 | (24.2) (4Q27) | (27.2) (4Q26) |
Inflation rate (YoY % change) 3 | (1.9) (4Q26) | 10.1 (2Q25) |
Central bank policy rate (%)3 | 1.4 (1Q27) | 5.5 (1Q25) |
Scenario weights % | ||
4Q25 | 4Q24 | |
Upside | 10.0 | 10.0 |
Central | 75.0 | 75.0 |
Downside | 10.0 | 10.0 |
Downside 2 | 5.0 | 5.0 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
32 |
Retail | Wholesale2 | Total | |
£m | £m | £m | |
Modelled ECL (A)3 | 585 | 385 | 970 |
Corporate lending adjustments | — | 9 | 9 |
Inflation related adjustments | — | — | — |
Other credit judgements | 23 | — | 23 |
Total management judgemental adjustments (B)4 | 23 | 9 | 32 |
Other adjustments (C)5 | (16) | 29 | 13 |
Final ECL (A + B + C)6 | 592 | 423 | 1,015 |
Retail | Wholesale2 | Total | |
£m | £m | £m | |
Modelled ECL (A)3 | 582 | 512 | 1,094 |
Corporate lending adjustments | — | — | — |
Inflation related adjustments | 3 | — | 3 |
Other credit judgements | 7 | — | 7 |
Total management judgemental adjustments (B)4 | 10 | — | 10 |
Other adjustments (C)5 | (43) | 14 | (29) |
Final ECL (A + B + C)6 | 549 | 526 | 1,075 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
33 |
IFRS 9 ECL sensitivity to future economic conditions1,2,3 | ||
2025 | 2024 | |
£m | £m | |
ECL of financial instruments subject to significant measurement uncertainty at 31 Dec | ||
Reported ECL | 423 | 526 |
Consensus scenarios | ||
Central scenario | 404 | 491 |
Upside scenario | 365 | 390 |
Downside scenario | 478 | 620 |
Downside 2 scenario | 770 | 1,599 |
IFRS 9 ECL sensitivity to future economic conditions1 | ||
2025 | 2024 | |
£m | £m | |
ECL of loans and advances to customers at 31 Dec | ||
Reported ECL | 561 | 516 |
Consensus scenarios | ||
Central scenario | 551 | 498 |
Upside scenario | 517 | 470 |
Downside scenario | 573 | 520 |
Downside 2 scenario | 793 | 866 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
34 |
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | |
£m | £m | £m | £m | £m | £m | £m | £m | |
At 1 Jan 2025 | 256,122 | (301) | 39,027 | (593) | 3,927 | (698) | 299,076 | (1,592) |
Transfers of financial instruments | 8,276 | (276) | (10,013) | 353 | 1,737 | (77) | — | — |
– transfers from Stage 1 to Stage 2 | (29,764) | 92 | 29,764 | (92) | — | — | — | — |
– transfers from Stage 2 to Stage 1 | 38,340 | (348) | (38,340) | 348 | — | — | — | — |
– transfers to Stage 3 | (502) | 8 | (1,801) | 144 | 2,303 | (152) | — | — |
– transfers from Stage 3 | 202 | (28) | 364 | (47) | (566) | 75 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 241 | — | (169) | — | (6) | — | 66 |
Net new and further lending/repayments | 29,827 | (34) | (7,886) | 145 | (1,371) | 317 | 20,570 | 428 |
Changes to risk parameters – credit quality | — | 50 | — | (300) | — | (908) | — | (1,158) |
Changes to models used for ECL calculation | — | 2 | — | 71 | — | (12) | — | 61 |
Assets written off | — | — | — | — | (601) | 601 | (601) | 601 |
Foreign exchange | — | 1 | — | — | — | — | — | 1 |
Others | — | — | — | — | — | — | — | — |
At 31 Dec 2025 | 294,225 | (317) | 21,128 | (493) | 3,692 | (783) | 319,045 | (1,593) |
ECL income statement change for the period | 259 | (253) | (609) | (603) | ||||
Recoveries | 78 | |||||||
Others | (5) | |||||||
Total ECL income statement change for the period | (530) | |||||||
At 1 Jan 2024 | 240,631 | (317) | 47,362 | (780) | 4,252 | (710) | 292,245 | (1,807) |
Transfers of financial instruments: | (3,927) | (290) | 2,298 | 344 | 1,629 | (54) | — | — |
– transfers from Stage 1 to Stage 2 | (37,934) | 156 | 37,934 | (156) | — | — | — | — |
– transfers from Stage 2 to Stage 1 | 34,287 | (417) | (34,287) | 417 | — | — | — | — |
– transfers to Stage 3 | (585) | 5 | (1,833) | 145 | 2,418 | (150) | — | — |
– transfers from Stage 3 | 305 | (34) | 484 | (62) | (789) | 96 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 254 | — | (158) | — | (8) | — | 88 |
Net new and further lending/repayments | 19,372 | (67) | (10,633) | 231 | (1,349) | 298 | 7,390 | 462 |
Changes to risk parameters – credit quality | — | 99 | — | (235) | — | (811) | — | (947) |
Changes to models used for ECL calculation | — | 21 | — | 5 | — | (18) | — | 8 |
Assets written off | — | — | — | — | (605) | 605 | (605) | 605 |
Foreign exchange | — | (1) | — | — | — | — | — | (1) |
Others | 46 | — | — | — | — | — | 46 | — |
At 31 Dec 2024 | 256,122 | (301) | 39,027 | (593) | 3,927 | (698) | 299,076 | (1,592) |
ECL income statement change for the period | 307 | (157) | (539) | (389) | ||||
Recoveries | 74 | |||||||
Others | (4) | |||||||
Total ECL income statement change for the period | (319) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
35 |
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | |
£m | £m | £m | £m | £m | £m | £m | £m | |
At 1 Jan 2025 | 186,510 | (275) | 35,152 | (565) | 3,534 | (650) | 225,196 | (1,490) |
Transfers of financial instruments: | 8,153 | (257) | (9,776) | 333 | 1,623 | (76) | — | — |
– transfers from stage 1 to stage 2 | (26,152) | 89 | 26,152 | (89) | — | — | — | — |
– transfers from stage 2 to stage 1 | 34,564 | (327) | (34,564) | 327 | — | — | — | — |
– transfers to stage 3 | (427) | 8 | (1,685) | 142 | 2,112 | (150) | — | — |
– transfers from stage 3 | 168 | (27) | 321 | (47) | (489) | 74 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 227 | — | (161) | — | (6) | — | 60 |
Net new and further lending/repayments | 21,891 | (36) | (6,733) | 135 | (1,104) | 299 | 14,054 | 398 |
Changes to risk parameters – credit quality | — | 55 | — | (291) | — | (907) | — | (1,143) |
Changes to models used for ECL calculation | — | 2 | — | 71 | — | (12) | — | 61 |
Assets written off | — | — | — | — | (601) | 601 | (601) | 601 |
Foreign exchange | — | 1 | — | — | — | — | — | 1 |
Others | — | — | — | — | — | — | — | — |
At 31 Dec 2025 | 216,554 | (283) | 18,643 | (478) | 3,452 | (751) | 238,649 | (1,512) |
ECL income statement change for the period | 248 | (246) | (626) | (624) | ||||
Recoveries | 78 | |||||||
Others | (4) | |||||||
Total ECL income statement change for the period | (550) | |||||||
At 1 Jan 2024 | 174,984 | (286) | 42,286 | (755) | 3,911 | (665) | 221,181 | (1,706) |
Transfers of financial instruments: | (3,944) | (280) | 2,488 | 328 | 1,456 | (48) | — | — |
– transfers from stage 1 to stage 2 | (33,463) | 150 | 33,463 | (150) | — | — | — | — |
– transfers from stage 2 to stage 1 | 29,766 | (401) | (29,766) | 401 | — | — | — | — |
– transfers to stage 3 | (482) | 5 | (1,647) | 139 | 2,129 | (144) | — | — |
– transfers from stage 3 | 235 | (34) | 438 | (62) | (673) | 96 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 245 | — | (148) | — | (8) | — | 89 |
Net new and further lending/repayments | 15,424 | (70) | (9,622) | 221 | (1,228) | 249 | 4,574 | 400 |
Changes to risk parameters – credit quality | — | 96 | — | (216) | — | (765) | — | (885) |
Changes to models used for ECL calculation | — | 21 | — | 5 | — | (18) | — | 8 |
Assets written off | — | — | — | — | (605) | 605 | (605) | 605 |
Foreign exchange | — | (1) | — | — | — | — | — | (1) |
Others | 46 | — | — | — | — | — | 46 | — |
At 31 Dec 2024 | 186,510 | (275) | 35,152 | (565) | 3,534 | (650) | 225,196 | (1,490) |
ECL income statement change for the period | 292 | (138) | (542) | (388) | ||||
Recoveries | 74 | |||||||
Others | (5) | |||||||
Total ECL income statement change for the period | (319) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
36 |
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | |
£m | £m | £m | £m | £m | £m | £m | £m | |
At 1 Jan 2025 | 69,612 | (26) | 3,875 | (28) | 393 | (48) | 73,880 | (102) |
Transfers of financial instruments | 123 | (19) | (237) | 20 | 114 | (1) | — | — |
– transfers from stage 1 to stage 2 | (3,612) | 3 | 3,612 | (3) | — | — | — | — |
– transfers from stage 2 to stage 1 | 3,776 | (21) | (3,776) | 21 | — | — | — | — |
– transfers to stage 3 | (75) | — | (116) | 2 | 191 | (2) | — | — |
– transfers from stage 3 | 34 | (1) | 43 | — | (77) | 1 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 14 | — | (8) | — | — | — | 6 |
Net new and further lending/repayments | 7,936 | 2 | (1,153) | 10 | (267) | 18 | 6,516 | 30 |
Changes to risk parameters – credit quality | — | (5) | — | (9) | — | (1) | — | (15) |
At 31 Dec 2025 | 77,671 | (34) | 2,485 | (15) | 240 | (32) | 80,396 | (81) |
ECL income statement change for the period | 11 | (7) | 17 | 21 | ||||
Recoveries | — | |||||||
Others | (1) | |||||||
Total ECL income statement change for the period | 20 | |||||||
At 1 Jan 2024 | 65,647 | (31) | 5,076 | (25) | 341 | (45) | 71,064 | (101) |
Transfers of financial instruments: | 17 | (10) | (190) | 16 | 173 | (6) | — | — |
– transfers from stage 1 to stage 2 | (4,471) | 6 | 4,471 | (6) | — | — | — | — |
– transfers from stage 2 to stage 1 | 4,521 | (16) | (4,521) | 16 | — | — | — | — |
– transfers to stage 3 | (103) | — | (186) | 6 | 289 | (6) | — | — |
– transfers from stage 3 | 70 | — | 46 | — | (116) | — | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 9 | — | (10) | — | — | — | (1) |
Net new and further lending/repayments | 3,948 | 3 | (1,011) | 10 | (121) | 49 | 2,816 | 62 |
Changes to risk parameters – credit quality | — | 3 | — | (19) | — | (46) | — | (62) |
At 31 Dec 2024 | 69,612 | (26) | 3,875 | (28) | 393 | (48) | 73,880 | (102) |
ECL income statement change for the period | 15 | (19) | 3 | (1) | ||||
Recoveries | — | |||||||
Others | 1 | |||||||
Total ECL income statement change for the period | — |
HSBC UK Bank plc Annual Report and Accounts 2025 |
37 |
Distribution of financial instruments by credit quality | ||||||||
Gross carrying/notional amount | Allowance for ECL | Net | ||||||
Strong | Good | Satisfactory | Sub- standard | Credit impaired | Total | |||
£m | £m | £m | £m | £m | £m | £m | £m | |
In-scope for IFRS 9 | ||||||||
Loans and advances to customers held at amortised cost | 135,440 | 50,642 | 38,564 | 4,637 | 3,453 | 232,736 | (1,513) | 231,223 |
– personal | 124,478 | 20,919 | 7,924 | 453 | 895 | 154,669 | (575) | 154,094 |
– corporate and commercial | 8,464 | 26,244 | 28,119 | 4,152 | 2,500 | 69,479 | (875) | 68,604 |
– non-bank financial institutions | 2,498 | 3,479 | 2,521 | 32 | 58 | 8,588 | (63) | 8,525 |
Loans and advances to banks held at amortised cost | 6,636 | — | — | — | — | 6,636 | — | 6,636 |
Cash and balances at central banks | 40,369 | — | — | — | — | 40,369 | — | 40,369 |
Reverse repurchase agreements – non-trading | 21,097 | 463 | — | — | — | 21,560 | — | 21,560 |
Financial investments | 19,112 | — | — | — | — | 19,112 | (1) | 19,111 |
Other assets | 2,478 | 263 | 231 | 22 | 29 | 3,023 | (7) | 3,016 |
– endorsements and acceptances | 4 | 28 | 12 | 1 | — | 45 | — | 45 |
– accrued income and other | 2,474 | 235 | 219 | 21 | 29 | 2,978 | (7) | 2,971 |
Debt instruments measured at FVOCI1 | 22,965 | — | — | — | — | 22,965 | — | 22,965 |
Out-of-scope for IFRS 9 ECL | ||||||||
Derivatives | 158 | 6 | 3 | — | — | 167 | — | 167 |
Total gross carrying amount on balance sheet | 248,255 | 51,374 | 38,798 | 4,659 | 3,482 | 346,568 | (1,521) | 345,047 |
Percentage of total credit quality | 71.7 | 14.8 | 11.2 | 1.3 | 1.0 | 100.0 | ||
Loan and other credit related commitments | 46,043 | 19,079 | 13,600 | 847 | 202 | 79,771 | (69) | 79,702 |
Financial guarantees | 567 | 180 | 402 | 11 | 37 | 1,197 | (11) | 1,186 |
In-scope: Irrevocable loan commitments and financial guarantees | 46,610 | 19,259 | 14,002 | 858 | 239 | 80,968 | (80) | 80,888 |
Loan and other credit related commitments | 229 | 933 | 1,152 | 103 | 18 | 2,435 | — | 2,435 |
Performance and other guarantees | 460 | 1,096 | 1,070 | 123 | 73 | 2,822 | (28) | 2,794 |
Out-of-scope: Revocable loan commitments and Non- financial guarantees | 689 | 2,029 | 2,222 | 226 | 91 | 5,257 | (28) | 5,229 |
In-scope for IFRS 9 | ||||||||
Loans and advances to customers held at amortised cost | 128,253 | 44,989 | 37,009 | 5,309 | 3,532 | 219,092 | (1,488) | 217,604 |
– personal | 117,179 | 20,821 | 7,953 | 456 | 857 | 147,266 | (531) | 146,735 |
– corporate and commercial | 8,719 | 21,727 | 25,780 | 4,776 | 2,638 | 63,640 | (913) | 62,727 |
– non-bank financial institutions | 2,355 | 2,441 | 3,276 | 77 | 37 | 8,186 | (44) | 8,142 |
Loans and advances to banks held at amortised cost | 7,263 | — | — | — | 2 | 7,265 | (2) | 7,263 |
Cash and balances at central banks | 52,276 | — | — | — | — | 52,276 | — | 52,276 |
Reverse repurchase agreements – non-trading | 11,776 | — | — | — | — | 11,776 | — | 11,776 |
Financial investments | 16,323 | — | — | — | — | 16,323 | (1) | 16,322 |
Other assets | 2,451 | 203 | 261 | 6 | 31 | 2,952 | (7) | 2,945 |
– endorsements and acceptances | 3 | 28 | 6 | 4 | — | 41 | (3) | 38 |
– accrued income and other | 2,448 | 175 | 255 | 2 | 31 | 2,911 | (4) | 2,907 |
Debt instruments measured at FVOCI1 | 22,263 | — | — | — | — | 22,263 | (1) | 22,262 |
Out-of-scope for IFRS 9 | ||||||||
Derivatives | 284 | 6 | 5 | — | — | 295 | — | 295 |
Total gross carrying amount on balance sheet | 240,889 | 45,198 | 37,275 | 5,315 | 3,565 | 332,242 | (1,499) | 330,743 |
Percentage of total credit quality | 72.5 | 13.6 | 11.2 | 1.6 | 1.1 | 100.0 | ||
Loan and other credit related commitments | 45,768 | 14,077 | 13,135 | 1,110 | 385 | 74,475 | (99) | 74,376 |
Financial guarantees | 490 | 228 | 240 | 80 | 8 | 1,046 | (3) | 1,043 |
In-scope: Irrevocable loan commitments and financial guarantees | 46,258 | 14,305 | 13,375 | 1,190 | 393 | 75,521 | (102) | 75,419 |
Loan and other credit related commitments | 753 | 830 | 1,177 | 228 | 96 | 3,084 | — | 3,084 |
Performance and other guarantees | 309 | 923 | 983 | 181 | 20 | 2,416 | (19) | 2,397 |
Out-of-scope: Revocable loan commitments and Non- financial guarantees | 1,062 | 1,753 | 2,160 | 409 | 116 | 5,500 | (19) | 5,481 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
38 |
Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation | ||||||||
Gross carrying/notional amount | Allowance for ECL | Net | ||||||
Strong | Good | Satisfactory | Sub- standard | Credit impaired | Total | |||
£m | £m | £m | £m | £m | £m | £m | £m | |
Loans and advances to customers at amortised cost | 135,440 | 50,642 | 38,564 | 4,637 | 3,453 | 232,736 | (1,513) | 231,223 |
– Stage 1 | 133,860 | 44,134 | 31,393 | 1,254 | — | 210,641 | (284) | 210,357 |
– Stage 2 | 1,580 | 6,508 | 7,171 | 3,383 | — | 18,642 | (477) | 18,165 |
– Stage 3 | — | — | — | — | 3,453 | 3,453 | (752) | 2,701 |
Loans and advances to banks at amortised cost | 6,636 | — | — | — | — | 6,636 | — | 6,636 |
– Stage 1 | 6,636 | — | — | — | — | 6,636 | — | 6,636 |
– Stage 2 | — | — | — | — | — | — | — | — |
– Stage 3 | — | — | — | — | — | — | — | — |
Other financial assets measured at amortised cost | 83,056 | 726 | 231 | 22 | 29 | 84,064 | (8) | 84,056 |
– Stage 1 | 83,049 | 705 | 198 | 5 | — | 83,957 | (1) | 83,956 |
– Stage 2 | 7 | 21 | 33 | 17 | — | 78 | (3) | 75 |
– Stage 3 | — | — | — | — | 29 | 29 | (4) | 25 |
Loan and other credit-related commitments | 46,043 | 19,079 | 13,600 | 847 | 202 | 79,771 | (69) | 79,702 |
– Stage 1 | 45,873 | 18,978 | 12,031 | 207 | — | 77,089 | (33) | 77,056 |
– Stage 2 | 170 | 101 | 1,569 | 640 | — | 2,480 | (16) | 2,464 |
– Stage 3 | — | — | — | — | 202 | 202 | (20) | 182 |
Financial guarantees | 567 | 180 | 402 | 11 | 37 | 1,197 | (11) | 1,186 |
– Stage 1 | 567 | 179 | 379 | 2 | — | 1,127 | — | 1,127 |
– Stage 2 | — | 1 | 23 | 9 | — | 33 | — | 33 |
– Stage 3 | — | — | — | — | 37 | 37 | (11) | 26 |
At 31 Dec 2025 | 271,742 | 70,627 | 52,797 | 5,517 | 3,721 | 404,404 | (1,601) | 402,803 |
Debt instruments at FVOCI1 | 22,965 | — | — | — | — | 22,965 | — | 22,965 |
– Stage 1 | 22,965 | — | — | — | — | 22,965 | — | 22,965 |
– Stage 2 | — | — | — | — | — | — | — | — |
– Stage 3 | — | — | — | — | — | — | — | — |
At 31 Dec 2025 | 22,965 | — | — | — | — | 22,965 | — | 22,965 |
Loans and advances to customers at amortised cost | 128,253 | 44,989 | 37,009 | 5,309 | 3,532 | 219,092 | (1,488) | 217,604 |
– stage 1 | 117,139 | 32,452 | 29,282 | 1,535 | — | 180,408 | (275) | 180,133 |
– stage 2 | 11,114 | 12,537 | 7,727 | 3,774 | — | 35,152 | (565) | 34,587 |
– stage 3 | — | — | — | — | 3,532 | 3,532 | (648) | 2,884 |
Loans and advances to banks at amortised cost | 7,263 | — | — | — | 2 | 7,265 | (2) | 7,263 |
– stage 1 | 7,263 | — | — | — | — | 7,263 | — | 7,263 |
– stage 2 | — | — | — | — | — | — | — | — |
– stage 3 | — | — | — | — | 2 | 2 | (2) | — |
Other financial assets measured at amortised cost | 82,826 | 203 | 261 | 6 | 31 | 83,327 | (8) | 83,319 |
– stage 1 | 82,791 | 167 | 200 | 2 | — | 83,160 | (4) | 83,156 |
– stage 2 | 35 | 36 | 61 | 4 | — | 136 | (2) | 134 |
– stage 3 | — | — | — | — | 31 | 31 | (2) | 29 |
Loan and other credit-related commitments | 45,768 | 14,077 | 13,135 | 1,110 | 385 | 74,475 | (99) | 74,376 |
– stage 1 | 45,482 | 12,877 | 11,527 | 394 | — | 70,280 | (26) | 70,254 |
– stage 2 | 286 | 1,200 | 1,608 | 716 | — | 3,810 | (28) | 3,782 |
– stage 3 | — | — | — | — | 385 | 385 | (45) | 340 |
Financial guarantees | 490 | 228 | 240 | 80 | 8 | 1,046 | (3) | 1,043 |
– stage 1 | 490 | 217 | 167 | 3 | — | 877 | — | 877 |
– stage 2 | — | 11 | 73 | 77 | — | 161 | — | 161 |
– stage 3 | — | — | — | — | 8 | 8 | (3) | 5 |
At 31 Dec 2024 | 264,600 | 59,497 | 50,645 | 6,505 | 3,958 | 385,205 | (1,600) | 383,605 |
Debt instruments at FVOCI1 | 22,263 | — | — | — | — | 22,263 | (1) | 22,262 |
– stage 1 | 22,263 | — | — | — | — | 22,263 | (1) | 22,262 |
– stage 2 | — | — | — | — | — | — | — | — |
– stage 3 | — | — | — | — | — | — | — | — |
At 31 Dec 2024 | 22,263 | — | — | — | — | 22,263 | (1) | 22,262 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
39 |
Forborne loans and advances to customers at amortised costs by stage allocation | |||
Performing – Forborne | Non-Performing – Forborne | Total Forborne | |
Stage 2 | Stage 3 | Total | |
£m | £m | £m | |
Gross carrying amount | |||
Personal | 145 | 362 | 507 |
– first lien residential mortgages | 47 | 255 | 302 |
– credit cards | 51 | 42 | 93 |
Other personal lending | 47 | 65 | 112 |
– other personal lending which is secured | — | 8 | 8 |
– other personal lending which is unsecured | 47 | 57 | 104 |
Wholesale | 824 | 1,152 | 1,976 |
– corporate and commercial | 823 | 1,152 | 1,975 |
– non-bank financial institutions | 1 | — | 1 |
At 31 Dec 2025 | 969 | 1,514 | 2,483 |
Allowance for ECL | |||
Personal | (10) | (88) | (98) |
– first lien residential mortgages | — | (30) | (30) |
– credit cards | (6) | (28) | (34) |
Other personal lending | (4) | (30) | (34) |
– other personal lending which is secured | — | — | — |
– other personal lending which is unsecured | (4) | (30) | (34) |
Wholesale | (59) | (195) | (254) |
– corporate and commercial | (59) | (195) | (254) |
– non-bank financial institutions | — | — | — |
At 31 Dec 2025 | (69) | (283) | (352) |
Gross carrying amount | |||
Personal | 133 | 372 | 505 |
– first lien residential mortgages | 21 | 234 | 255 |
– credit cards | 52 | 52 | 104 |
Other personal lending | 60 | 86 | 146 |
– other personal lending which is secured | — | — | — |
– other personal lending which is unsecured | 60 | 86 | 146 |
Wholesale | 864 | 1,408 | 2,272 |
– corporate and commercial | 861 | 1,405 | 2,266 |
– non-bank financial institutions | 3 | 3 | 6 |
At 31 Dec 2024 | 997 | 1,780 | 2,777 |
Allowance for ECL | |||
Personal | (12) | (93) | (105) |
– first lien residential mortgages | — | (24) | (24) |
– credit cards | (6) | (25) | (31) |
Other personal lending | (6) | (44) | (50) |
– other personal lending which is secured | — | — | — |
– other personal lending which is unsecured | (6) | (44) | (50) |
Wholesale | (68) | (221) | (289) |
– corporate and commercial | (68) | (219) | (287) |
– non-bank financial institutions | — | (2) | (2) |
At 31 Dec 2024 | (80) | (314) | (394) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
40 |
Total wholesale lending for loans and advances to banks and customers by stage distribution | ||||||||
Gross carrying amount | Allowance for ECL | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | |
Corporate and commercial | 59,346 | 7,633 | 2,500 | 69,479 | (127) | (240) | (508) | (875) |
– agriculture, forestry and fishing | 3,697 | 555 | 194 | 4,446 | (7) | (17) | (27) | (51) |
– mining and quarrying | 378 | 26 | 83 | 487 | — | (1) | (43) | (44) |
– manufacturing | 7,555 | 809 | 506 | 8,870 | (9) | (22) | (68) | (99) |
– electricity, gas, steam and air-conditioning supply | 1,424 | 304 | 6 | 1,734 | (2) | (7) | (1) | (10) |
– water supply, sewerage, waste management and remediation | 856 | 34 | 32 | 922 | (2) | (1) | (9) | (12) |
– real estate and construction | 13,032 | 1,551 | 412 | 14,995 | (29) | (69) | (91) | (189) |
– of which: CRE | 11,083 | 1,458 | 264 | 12,805 | (26) | (60) | (62) | (148) |
– wholesale and retail trade, repair of motor vehicles and motorcycles | 9,249 | 1,334 | 463 | 11,046 | (13) | (28) | (124) | (165) |
– transportation and storage | 2,268 | 196 | 41 | 2,505 | (2) | (5) | (4) | (11) |
– accommodation and food | 4,617 | 927 | 282 | 5,826 | (16) | (33) | (21) | (70) |
– publishing, audiovisual and broadcasting | 3,178 | 381 | 200 | 3,759 | (20) | (13) | (61) | (94) |
– professional, scientific and technical activities | 4,336 | 315 | 79 | 4,730 | (11) | (14) | (22) | (47) |
– administrative and support services | 4,611 | 555 | 59 | 5,225 | (6) | (10) | (17) | (33) |
– education | 980 | 118 | 26 | 1,124 | (2) | (7) | (7) | (16) |
– health and care | 1,520 | 184 | 40 | 1,744 | (3) | (5) | (5) | (13) |
– arts, entertainment and recreation | 892 | 66 | 28 | 986 | (2) | (3) | (5) | (10) |
– other services | 752 | 277 | 49 | 1,078 | (3) | (5) | (3) | (11) |
– activities of households | — | — | — | — | — | — | — | — |
– government | 1 | 1 | — | 2 | — | — | — | — |
Non-bank financial institutions | 8,344 | 186 | 58 | 8,588 | (8) | (2) | (53) | (63) |
Loans and advances to banks | 6,636 | — | — | 6,636 | — | — | — | — |
At 31 Dec 2025 | 74,326 | 7,819 | 2,558 | 84,703 | (135) | (242) | (561) | (938) |
Total wholesale credit-related commitments and financial guarantees by stage distribution | ||||||||
Nominal amount | Allowance for ECL | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | |
Corporate and commercial | 32,250 | 1,796 | 207 | 34,253 | (20) | (12) | (31) | (63) |
Financial | 4,498 | 117 | — | 4,615 | (2) | — | — | (2) |
At 31 Dec 2025 | 36,748 | 1,913 | 207 | 38,868 | (22) | (12) | (31) | (65) |
Total wholesale lending for loans and advances to banks and customers by stage distribution | ||||||||
Gross carrying amount | Allowance for ECL | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | |
Corporate and commercial | 51,144 | 9,858 | 2,638 | 63,640 | (150) | (315) | (448) | (913) |
– agriculture, forestry and fishing | 3,416 | 709 | 192 | 4,317 | (9) | (22) | (24) | (55) |
– mining and quarrying | 423 | 178 | 1 | 602 | (1) | (4) | — | (5) |
– manufacturing | 6,483 | 1,127 | 341 | 7,951 | (13) | (33) | (65) | (111) |
– electricity, gas, steam and air-conditioning supply | 1,305 | 43 | 5 | 1,353 | (2) | — | — | (2) |
– water supply, sewerage, waste management and remediation | 847 | 85 | 14 | 946 | (1) | (2) | (2) | (5) |
– real estate and construction | 9,094 | 3,723 | 514 | 13,331 | (29) | (95) | (83) | (207) |
– of which: CRE | 7,489 | 3,230 | 392 | 11,111 | (24) | (81) | (57) | (162) |
– wholesale and retail trade, repair of motor vehicles and motorcycles | 8,222 | 1,383 | 508 | 10,113 | (17) | (43) | (98) | (158) |
– transportation and storage | 1,794 | 294 | 67 | 2,155 | (3) | (6) | (10) | (19) |
– accommodation and food | 4,659 | 664 | 390 | 5,713 | (15) | (30) | (35) | (80) |
– publishing, audiovisual and broadcasting | 2,688 | 409 | 138 | 3,235 | (22) | (27) | (29) | (78) |
– professional, scientific and technical activities | 3,867 | 330 | 129 | 4,326 | (13) | (17) | (51) | (81) |
– administrative and support services | 4,588 | 383 | 58 | 5,029 | (11) | (12) | (13) | (36) |
– education | 599 | 96 | 31 | 726 | (2) | (5) | (12) | (19) |
– health and care | 1,405 | 297 | 99 | 1,801 | (4) | (12) | (15) | (31) |
– arts, entertainment and recreation | 834 | 56 | 36 | 926 | (2) | (3) | (3) | (8) |
– other services | 916 | 81 | 115 | 1,112 | (6) | (4) | (8) | (18) |
– activities of households | 1 | — | — | 1 | — | — | — | — |
– government | 3 | — | — | 3 | — | — | — | — |
Non-bank financial institutions | 7,826 | 323 | 37 | 8,186 | (8) | (5) | (31) | (44) |
Loans and advances to banks | 7,263 | — | 2 | 7,265 | — | — | (2) | (2) |
At 31 Dec 2024 | 66,233 | 10,181 | 2,677 | 79,091 | (158) | (320) | (481) | (959) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
41 |
Total wholesale credit-related commitments and financial guarantees by stage distribution (continued) | ||||||||
Nominal amount | Allowance for ECL | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | |
Corporate and commercial | 25,246 | 3,370 | 342 | 28,958 | (20) | (28) | (45) | (93) |
Financial | 5,193 | 249 | 13 | 5,455 | (1) | — | (1) | (2) |
At 31 Dec 2024 | 30,439 | 3,619 | 355 | 34,413 | (21) | (28) | (46) | (95) |
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | |
£m | £m | £m | £m | £m | £m | £m | £m | |
At 1 Jan 2025 | 93,966 | (179) | 13,704 | (348) | 3,032 | (527) | 110,702 | (1,054) |
Transfers of financial instruments | (5) | (100) | (1,370) | 154 | 1,375 | (54) | — | — |
– transfers from stage 1 to stage 2 | (9,158) | 41 | 9,158 | (41) | — | — | — | — |
– transfers from stage 2 to stage 1 | 9,366 | (131) | (9,366) | 131 | — | — | — | — |
– transfers to stage 3 | (284) | 1 | (1,384) | 83 | 1,668 | (84) | — | — |
– transfers from stage 3 | 71 | (11) | 222 | (19) | (293) | 30 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 103 | — | (66) | — | (2) | — | 35 |
Net new and further lending/repayments | 15,845 | (12) | (2,629) | 100 | (1,332) | 270 | 11,884 | 358 |
Changes to risk parameters – credit quality | — | 8 | — | (166) | — | (589) | — | (747) |
Changes to models used for ECL calculation | — | 22 | — | 72 | — | — | — | 94 |
Assets written off | — | — | — | — | (310) | 310 | (310) | 310 |
Foreign exchange | — | 1 | — | — | — | — | — | 1 |
Others | — | — | — | — | — | — | — | — |
At 31 Dec 2025 | 109,806 | (157) | 9,705 | (254) | 2,765 | (592) | 122,276 | (1,003) |
ECL income statement change for the period | 121 | (60) | (321) | (260) | ||||
Recoveries | 9 | |||||||
Others | (5) | |||||||
Total ECL income statement change for the period | (256) | |||||||
At 1 Jan 2024 | 85,019 | (190) | 19,191 | (396) | 3,228 | (508) | 107,438 | (1,094) |
Transfers of financial instruments | (1,209) | (85) | (153) | 145 | 1,362 | (60) | — | — |
– transfers from stage 1 to stage 2 | (14,756) | 91 | 14,756 | (91) | — | — | — | — |
– transfers from stage 2 to stage 1 | 13,823 | (171) | (13,823) | 171 | — | — | — | — |
– transfers to stage 3 | (351) | 2 | (1,358) | 72 | 1,709 | (74) | — | — |
– transfers from stage 3 | 75 | (7) | 272 | (7) | (347) | 14 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 101 | — | (97) | — | (2) | — | 2 |
Net new and further lending/repayments | 10,110 | (41) | (5,334) | 120 | (1,228) | 252 | 3,548 | 331 |
Change to risk parameters – credit quality | — | 11 | — | (175) | — | (539) | — | (703) |
Changes to models used for ECL calculation | — | 26 | — | 55 | — | — | — | 81 |
Assets written off | — | — | — | — | (330) | 330 | (330) | 330 |
Foreign exchange | — | (1) | — | — | — | — | — | (1) |
Other | 46 | — | — | — | — | — | 46 | — |
At 31 Dec 2024 | 93,966 | (179) | 13,704 | (348) | 3,032 | (527) | 110,702 | (1,054) |
ECL income statement change for the period | 97 | (97) | (289) | (289) | ||||
Recoveries | 13 | |||||||
Others | (4) | |||||||
Total ECL income statement change for the period | (280) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
42 |
Wholesale lending – credit risk profile by obligor grade for loans and advances at amortised cost | |||||||||||
Gross carrying amount | Allowance for ECL | ||||||||||
Basel one-year PD range | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | ECL coverage | Mapped external rating | |
% | £m | £m | £m | £m | £m | £m | £m | £m | % | ||
Corporate and commercial | 59,346 | 7,633 | 2,500 | 69,479 | (127) | (240) | (508) | (875) | 1.3 | ||
– CRR 1 | 0.000 to 0.053 | 956 | — | — | 956 | — | — | — | — | — | AA- and above |
– CRR 2 | 0.054 to 0.169 | 7,487 | 21 | — | 7,508 | (3) | — | — | (3) | — | A+ to A- |
– CRR 3 | 0.170 to 0.740 | 25,770 | 474 | — | 26,244 | (29) | (5) | — | (34) | 0.1 | BBB+ to BBB- |
– CRR 4 | 0.741 to 1.927 | 15,655 | 1,661 | — | 17,316 | (39) | (13) | — | (52) | 0.3 | BB+ to BB- |
– CRR 5 | 1.928 to 4.914 | 8,447 | 2,356 | — | 10,803 | (51) | (45) | — | (96) | 0.9 | BB- to B |
– CRR 6 | 4.915 to 8.860 | 612 | 1,412 | — | 2,024 | (4) | (43) | — | (47) | 2.3 | B- |
– CRR 7 | 8.861 to 15.000 | 246 | 866 | — | 1,112 | (1) | (43) | — | (44) | 4.0 | CCC+ |
– CRR 8 | 15.001 to 99.999 | 173 | 843 | — | 1,016 | — | (91) | — | (91) | 9.0 | CCC to C |
– CRR 9/10 | 100.000 | — | — | 2,500 | 2,500 | — | — | (508) | (508) | 20.3 | D |
Non-bank financial institutions | 8,344 | 186 | 58 | 8,588 | (8) | (2) | (53) | (63) | 0.7 | ||
– CRR 1 | 0.000 to 0.053 | 247 | — | — | 247 | — | — | — | — | — | AA- and above |
– CRR 2 | 0.054 to 0.169 | 2,251 | — | — | 2,251 | — | — | — | — | — | A+ to A- |
– CRR 3 | 0.170 to 0.740 | 3,479 | — | — | 3,479 | (2) | — | — | (2) | 0.1 | BBB+ to BBB- |
– CRR 4 | 0.741 to 1.927 | 1,761 | 38 | — | 1,799 | (3) | (1) | — | (4) | 0.2 | BB+ to BB- |
– CRR 5 | 1.928 to 4.914 | 591 | 131 | — | 722 | (2) | (1) | — | (3) | 0.4 | BB- to B |
– CRR 6 | 4.915 to 8.860 | 10 | 11 | — | 21 | (1) | — | — | (1) | 4.8 | B- |
– CRR 7 | 8.861 to 15.000 | 4 | 6 | — | 10 | — | — | — | — | — | CCC+ |
– CRR 8 | 15.001 to 99.999 | 1 | — | — | 1 | — | — | — | — | — | CCC to C |
– CRR 9/10 | 100.000 | — | — | 58 | 58 | — | — | (53) | (53) | 91.4 | D |
Banks | 6,636 | — | — | 6,636 | — | — | — | — | — | ||
– CRR 1 | 0.000 to 0.053 | 6,591 | — | — | 6,591 | — | — | — | — | — | AA- and above |
– CRR 2 | 0.054 to 0.169 | 45 | — | — | 45 | — | — | — | — | — | A+ to A- |
– CRR 3 | 0.170 to 0.740 | — | — | — | — | — | — | — | — | — | BBB+ to BBB- |
– CRR 4 | 0.741 to 1.927 | — | — | — | — | — | — | — | — | — | BB+ to BB- |
– CRR 5 | 1.928 to 4.914 | — | — | — | — | — | — | — | — | — | BB- to B |
– CRR 6 | 4.915 to 8.860 | — | — | — | — | — | — | — | — | — | B- |
– CRR 7 | 8.861 to 15.000 | — | — | — | — | — | — | — | — | — | CCC+ |
– CRR 8 | 15.001 to 99.999 | — | — | — | — | — | — | — | — | — | CCC to C |
– CRR 9/10 | 100.000 | — | — | — | — | — | — | — | — | — | D |
At 31 Dec 2025 | 74,326 | 7,819 | 2,558 | 84,703 | (135) | (242) | (561) | (938) | 1.1 | ||
Corporate and commercial 1 | 51,144 | 9,858 | 2,638 | 63,640 | (150) | (315) | (448) | (913) | 1.4 | ||
– CRR 1 | 0.000 to 0.053 | 520 | — | — | 520 | — | (1) | — | (1) | 0.2 | AA- and above |
– CRR 2 | 0.054 to 0.169 | 7,449 | 750 | — | 8,199 | (6) | (8) | — | (14) | 0.2 | A+ to A- |
– CRR 3 | 0.170 to 0.740 | 19,978 | 1,749 | — | 21,727 | (26) | (29) | — | (55) | 0.3 | BBB+ to BBB- |
– CRR 4 | 0.741 to 1.927 | 13,479 | 2,262 | — | 15,741 | (45) | (34) | — | (79) | 0.5 | BB+ to BB- |
– CRR 5 | 1.928 to 4.914 | 8,292 | 1,747 | — | 10,039 | (62) | (45) | — | (107) | 1.1 | BB- to B |
– CRR 6 | 4.915 to 8.860 | 644 | 1,158 | — | 1,802 | (8) | (52) | — | (60) | 3.3 | B- |
– CRR 7 | 8.861 to 15.000 | 590 | 1,420 | — | 2,010 | (3) | (62) | — | (65) | 3.2 | CCC+ |
– CRR 8 | 15.001 to 99.999 | 192 | 772 | — | 964 | — | (84) | — | (84) | 8.7 | CCC to C |
– CRR 9/10 | 100.000 | — | — | 2,638 | 2,638 | — | — | (448) | (448) | 17.0 | D |
Non-bank financial institutions | 7,826 | 323 | 37 | 8,186 | (8) | (5) | (31) | (44) | 0.5 | ||
– CRR 1 | 0.000 to 0.053 | 298 | — | — | 298 | — | — | — | — | — | AA- and above |
– CRR 2 | 0.054 to 0.169 | 2,057 | — | — | 2,057 | (1) | — | — | (1) | — | A+ to A- |
– CRR 3 | 0.170 to 0.740 | 2,384 | 57 | — | 2,441 | (1) | (2) | — | (3) | 0.1 | BBB+ to BBB- |
– CRR 4 | 0.741 to 1.927 | 2,715 | 100 | — | 2,815 | (3) | — | — | (3) | 0.1 | BB+ to BB- |
– CRR 5 | 1.928 to 4.914 | 355 | 106 | — | 461 | (3) | (3) | — | (6) | 1.3 | BB- to B |
– CRR 6 | 4.915 to 8.860 | 6 | 57 | — | 63 | — | — | — | — | — | B- |
– CRR 7 | 8.861 to 15.000 | 10 | 3 | — | 13 | — | — | — | — | — | CCC+ |
– CRR 8 | 15.001 to 99.999 | 1 | — | — | 1 | — | — | — | — | — | CCC to C |
– CRR 9/10 | 100.000 | — | — | 37 | 37 | — | — | (31) | (31) | 83.8 | D |
Banks | 7,263 | — | 2 | 7,265 | — | — | (2) | (2) | — | ||
– CRR 1 | 0.000 to 0.053 | 7,181 | — | — | 7,181 | — | — | — | — | — | AA- and above |
– CRR 2 | 0.054 to 0.169 | 82 | — | — | 82 | — | — | — | — | — | A+ to A- |
– CRR 3 | 0.170 to 0.740 | — | — | — | — | — | — | — | — | — | BBB+ to BBB- |
– CRR 4 | 0.741 to 1.927 | — | — | — | — | — | — | — | — | — | BB+ to BB- |
– CRR 5 | 1.928 to 4.914 | — | — | — | — | — | — | — | — | — | BB- to B |
– CRR 6 | 4.915 to 8.860 | — | — | — | — | — | — | — | — | — | B- |
– CRR 7 | 8.861 to 15.000 | — | — | — | — | — | — | — | — | — | CCC+ |
– CRR 8 | 15.001 to 99.999 | — | — | — | — | — | — | — | — | — | CCC to C |
– CRR 9/10 | 100.000 | — | — | 2 | 2 | — | — | (2) | (2) | 100.0 | D |
At 31 Dec 2024 | 66,233 | 10,181 | 2,677 | 79,091 | (158) | (320) | (481) | (959) | 1.2 | ||
HSBC UK Bank plc Annual Report and Accounts 2025 |
43 |
Wholesale lending – credit risk profile by obligor grade for loan and other credit-related commitments and financial guarantees | |||||||||||
Gross carrying amount | Allowance for ECL | Mapped external rating | |||||||||
Basel one-year PD range | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | ECL coverage | ||
% | £m | £m | £m | £m | £m | £m | £m | £m | % | ||
Loan and other credit- related commitments | 35,924 | 1,880 | 170 | 37,974 | (22) | (12) | (20) | (54) | 0.1 | ||
– CRR 1 | 0.000 to 0.053 | 2,382 | 84 | — | 2,466 | — | — | — | — | — | AA- and above |
– CRR 2 | 0.054 to 0.169 | 8,577 | 6 | — | 8,583 | (1) | — | — | (1) | — | A+ to A- |
– CRR 3 | 0.170 to 0.740 | 14,713 | 52 | — | 14,765 | (5) | — | — | (5) | — | BBB+ to BBB- |
– CRR 4 | 0.741 to 1.927 | 6,030 | 499 | — | 6,529 | (4) | (2) | — | (6) | 0.1 | BB+ to BB- |
– CRR 5 | 1.928 to 4.914 | 4,018 | 631 | — | 4,649 | (11) | (2) | — | (13) | 0.3 | BB- to B |
– CRR 6 | 4.915 to 8.860 | 181 | 392 | — | 573 | (1) | (3) | — | (4) | 0.7 | B- |
– CRR 7 | 8.861 to 15.000 | 21 | 167 | — | 188 | — | (1) | — | (1) | 0.5 | CCC+ |
– CRR 8 | 15.001 to 99.999 | 2 | 49 | — | 51 | — | (4) | — | (4) | 7.8 | CCC to C |
– CRR 9/10 | 100.000 | — | — | 170 | 170 | — | — | (20) | (20) | 11.8 | D |
Financial guarantees | 824 | 33 | 37 | 894 | — | — | (11) | (11) | 1.2 | ||
– CRR 1 | 0.000 to 0.053 | 2 | — | — | 2 | — | — | — | — | — | AA- and above |
– CRR 2 | 0.054 to 0.169 | 262 | — | — | 262 | — | — | — | — | — | A+ to A- |
– CRR 3 | 0.170 to 0.740 | 179 | 1 | — | 180 | — | — | — | — | — | BBB+ to BBB- |
– CRR 4 | 0.741 to 1.927 | 200 | 6 | — | 206 | — | — | — | — | — | BB+ to BB- |
– CRR 5 | 1.928 to 4.914 | 179 | 17 | — | 196 | — | — | — | — | — | BB- to B |
– CRR 6 | 4.915 to 8.860 | 2 | 3 | — | 5 | — | — | — | — | — | B- |
– CRR 7 | 8.861 to 15.000 | — | 3 | — | 3 | — | — | — | — | — | CCC+ |
– CRR 8 | 15.001 to 99.999 | — | 3 | — | 3 | — | — | — | — | — | CCC to C |
– CRR 9/10 | 100.000 | — | — | 37 | 37 | — | — | (11) | (11) | 29.7 | D |
At 31 Dec 2025 | 36,748 | 1,913 | 207 | 38,868 | (22) | (12) | (31) | (65) | 0.2 | ||
Loan and other credit- related commitments | 29,868 | 3,465 | 347 | 33,680 | (21) | (28) | (43) | (92) | 0.3 | ||
– CRR 1 | 0.000 to 0.053 | 2,545 | — | — | 2,545 | — | — | — | — | — | AA- and above |
– CRR 2 | 0.054 to 0.169 | 7,048 | 241 | — | 7,289 | (2) | (1) | — | (3) | — | A+ to A- |
– CRR 3 | 0.170 to 0.740 | 10,667 | 1,196 | — | 11,863 | (4) | (5) | — | (9) | 0.1 | BBB+ to BBB- |
– CRR 4 | 0.741 to 1.927 | 6,180 | 594 | — | 6,774 | (5) | (2) | — | (7) | 0.1 | BB+ to BB- |
– CRR 5 | 1.928 to 4.914 | 3,080 | 756 | — | 3,836 | (9) | (6) | — | (15) | 0.4 | BB- to B |
– CRR 6 | 4.915 to 8.860 | 234 | 337 | — | 571 | (1) | (3) | — | (4) | 0.7 | B- |
– CRR 7 | 8.861 to 15.000 | 110 | 164 | — | 274 | — | (3) | — | (3) | 1.1 | CCC+ |
– CRR 8 | 15.001 to 99.999 | 4 | 177 | — | 181 | — | (8) | — | (8) | 4.4 | CCC to C |
– CRR 9/10 | 100.000 | — | — | 347 | 347 | — | — | (43) | (43) | 12.4 | D |
Financial guarantees | 571 | 154 | 8 | 733 | — | — | (3) | (3) | |||
– CRR 1 | 0.000 to 0.053 | 3 | — | — | 3 | — | — | — | — | — | AA- and above |
– CRR 2 | 0.054 to 0.169 | 198 | — | — | 198 | — | — | — | — | — | A+ to A- |
– CRR 3 | 0.170 to 0.740 | 203 | 11 | — | 214 | — | — | — | — | — | BBB+ to BBB- |
– CRR 4 | 0.741 to 1.927 | 97 | 41 | — | 138 | — | — | — | — | — | BB+ to BB- |
– CRR 5 | 1.928 to 4.914 | 67 | 24 | — | 91 | — | — | — | — | — | BB- to B |
– CRR 6 | 4.915 to 8.860 | 1 | 32 | — | 33 | — | — | — | — | — | B- |
– CRR 7 | 8.861 to 15.000 | 2 | 33 | — | 35 | — | — | — | — | — | CCC+ |
– CRR 8 | 15.001 to 99.999 | — | 13 | — | 13 | — | — | — | — | — | CCC to C |
– CRR 9/10 | 100.000 | — | — | 8 | 8 | — | — | (3) | (3) | 37.5 | D |
At 31 Dec 2024 | 30,439 | 3,619 | 355 | 34,413 | (21) | (28) | (46) | (95) | 0.3 | ||
HSBC UK Bank plc Annual Report and Accounts 2025 |
44 |
Commercial real estate lending | ||
2025 | 2024 | |
£m | £m | |
Gross loans and advances | ||
Stage 1 | 11,083 | 7,489 |
Stage 2 | 1,458 | 3,230 |
Stage 3 | 264 | 392 |
POCI | — | — |
At 31 Dec | 12,805 | 11,111 |
– of which: forborne loans | 306 | 400 |
Allowance for ECL | (148) | (162) |
Commercial real estate gross loans and advances maturity analysis | ||
2025 | 2024 | |
£m | £m | |
< 1 year | 2,902 | 2,780 |
1-2 years | 2,833 | 2,633 |
2-5 years | 6,543 | 5,289 |
> 5 years | 527 | 409 |
At 31 Dec | 12,805 | 11,111 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
45 |
Wholesale lending: commercial real estate loans and advances including loan commitments by level of collateral (by stage) | ||||||||
Gross carrying/nominal amount | ECL coverage | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | % | % | % | % | |
Non Collateralised | 6,130 | 275 | 42 | 6,447 | 0.2 | 8.7 | 19.0 | 0.7 |
Fully collateralised by LTV ratio | 8,826 | 1,237 | 265 | 10,328 | 0.1 | 2.6 | 21.9 | 1.0 |
– less than 50% | 3,402 | 320 | 27 | 3,749 | 0.2 | 1.3 | 37.0 | 0.5 |
– 51% to 75% | 3,993 | 681 | 156 | 4,830 | 0.2 | 3.8 | 25.0 | 1.5 |
– 76% to 90% | 1,084 | 229 | 80 | 1,393 | 0.1 | 0.9 | 10.0 | 0.8 |
– 91% to 100% | 347 | 7 | 2 | 356 | — | — | 50.0 | 0.3 |
Partially collateralised (A): LTV > 100% | 1,574 | 86 | 50 | 1,710 | 0.1 | 1.2 | 18.0 | 0.7 |
– collateral value on A | 1,030 | 81 | 32 | 1,143 | ||||
Total at 31 Dec 2025 | 16,530 | 1,598 | 357 | 18,485 | 0.2 | 3.6 | 21.0 | 0.9 |
Non Collateralised | 3,410 | 1,462 | 102 | 4,974 | 0.4 | 3.7 | 27.7 | 2.0 |
Fully collateralised by LTV ratio | 7,016 | 2,524 | 243 | 9,783 | 0.2 | 1.1 | 8.1 | 0.6 |
– less than 50% | 2,167 | 585 | 127 | 2,879 | 0.2 | 1.5 | 8.0 | 0.8 |
– 51% to 75% | 3,273 | 1,350 | 56 | 4,679 | 0.2 | 1.2 | 11.5 | 0.6 |
– 76% to 90% | 935 | 583 | 19 | 1,537 | 0.1 | 0.3 | 10.3 | 0.3 |
– 91% to 100% | 641 | 6 | 41 | 688 | 0.1 | 7.8 | 2.7 | 0.3 |
Partially collateralised (A): LTV > 100% | 387 | 449 | 95 | 931 | 0.3 | 2.9 | 21.1 | 3.7 |
– collateral value on A | 223 | 278 | 55 | 556 | ||||
Total at 31 Dec 2024 | 10,813 | 4,435 | 440 | 15,688 | 0.2 | 2.1 | 15.4 | 1.2 |
Gross carrying/nominal amount | ECL coverage | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | % | % | % | % | |
Non Collateralised | 66,789 | 5,334 | 1,425 | 73,548 | 0.1 | 2.6 | 28.2 | 0.9 |
Fully collateralised by LTV ratio | 16,680 | 2,027 | 701 | 19,408 | 0.1 | 2.2 | 9.0 | 0.7 |
– less than 50% | 6,559 | 714 | 320 | 7,593 | 0.2 | 2.1 | 9.1 | 0.7 |
– 51% to 75% | 5,995 | 925 | 235 | 7,155 | 0.1 | 2.4 | 7.7 | 0.7 |
– 76% to 90% | 1,900 | 215 | 105 | 2,220 | 0.1 | 2.3 | 10.5 | 0.8 |
– 91% to 100% | 2,226 | 173 | 41 | 2,440 | 0.1 | 1.2 | 12.2 | 0.4 |
Partially collateralised (A): LTV > 100% | 5,950 | 838 | 246 | 7,034 | 0.1 | 1.3 | 16.7 | 0.8 |
– collateral value on A | 3,447 | 457 | 167 | 4,071 | ||||
Total at 31 Dec 2025 | 89,419 | 8,199 | 2,372 | 99,990 | 0.1 | 2.4 | 21.3 | 0.8 |
Non Collateralised | 59,272 | 6,313 | 1,577 | 67,162 | 0.2 | 2.9 | 24.0 | 1.0 |
Fully collateralised by LTV ratio | 14,734 | 2,258 | 769 | 17,761 | 0.1 | 2.5 | 5.6 | 0.7 |
– less than 50% | 5,800 | 947 | 377 | 7,124 | 0.1 | 2.3 | 2.7 | 0.6 |
– 51% to 75% | 5,119 | 881 | 194 | 6,194 | 0.2 | 3.0 | 7.2 | 0.8 |
– 76% to 90% | 1,843 | 292 | 103 | 2,238 | 0.2 | 2.4 | 15.3 | 1.2 |
– 91% to 100% | 1,972 | 138 | 95 | 2,205 | 0.2 | 2.1 | 3.5 | 0.4 |
Partially collateralised (A): LTV > 100% | 5,481 | 839 | 310 | 6,630 | 0.2 | 1.3 | 10.6 | 0.8 |
– collateral value on A | 2,979 | 463 | 200 | 3,642 | ||||
Total at 31 Dec 2024 | 79,487 | 9,410 | 2,656 | 91,553 | 0.2 | 2.7 | 17.1 | 0.9 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
46 |
Total personal lending for loans and advances to customers at amortised costs by stage distribution | ||||||||
Gross carrying amount | Allowance for ECL | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | |
By portfolio | ||||||||
First lien residential mortgages | 129,401 | 9,272 | 587 | 139,260 | (16) | (25) | (59) | (100) |
Credit Cards | 5,603 | 982 | 120 | 6,705 | (65) | (146) | (45) | (256) |
Other personal lending | 7,947 | 569 | 188 | 8,704 | (68) | (64) | (87) | (219) |
– other personal lending which is secured | 1,118 | 41 | 12 | 1,171 | — | — | (1) | (1) |
– other personal lending which is unsecured | 6,829 | 528 | 176 | 7,533 | (68) | (64) | (86) | (218) |
At 31 Dec 2025 | 142,951 | 10,823 | 895 | 154,669 | (149) | (235) | (191) | (575) |
Total personal credit-related commitments and financial guarantees by stage distribution | ||||||||
Nominal amount | Allowance for ECL | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | |
At 31 Dec 2025 | 41,468 | 600 | 32 | 42,100 | (11) | (4) | — | (15) |
Total personal lending for loans and advances to customers at amortised costs by stage distribution | ||||||||
Gross carrying amount | Allowance for ECL | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | |
By portfolio | ||||||||
First lien residential mortgages | 108,649 | 23,681 | 564 | 132,894 | (15) | (42) | (48) | (105) |
Credit Cards | 5,574 | 645 | 105 | 6,324 | (42) | (137) | (46) | (225) |
Other personal lending | 7,215 | 645 | 188 | 8,048 | (60) | (66) | (75) | (201) |
– other personal lending which is secured | 954 | 47 | 15 | 1,016 | — | — | (1) | (1) |
– other personal lending which is unsecured | 6,261 | 598 | 173 | 7,032 | (60) | (66) | (74) | (200) |
At 31 Dec 2024 | 121,438 | 24,971 | 857 | 147,266 | (117) | (245) | (169) | (531) |
Total personal credit-related commitments and financial guarantees by stage distribution | ||||||||
Nominal amount | Allowance for ECL | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | |
At 31 Dec 2024 | 40,718 | 352 | 38 | 41,108 | (5) | — | (2) | (7) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
47 |
HSBC interest-only mortgage loans | |
£m | |
Expired interest-only mortgage loans1 | 79 |
Interest-only mortgage loans by maturity | |
– 2026 | 128 |
– 2027 | 245 |
– 2028 | 346 |
– 2029 | 298 |
– 2030–2034 | 2,085 |
– post 2034 | 9,430 |
At 31 Dec 2025 | 12,611 |
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | |
£m | £m | £m | £m | £m | £m | £m | £m | |
At 1 Jan 2025 | 162,156 | (122) | 25,323 | (245) | 895 | (171) | 188,374 | (538) |
Transfers of financial instruments | 8,281 | (176) | (8,643) | 199 | 362 | (23) | — | — |
– transfers from stage 1 to stage 2 | (20,606) | 51 | 20,606 | (51) | — | — | — | — |
– transfers from stage 2 to stage 1 | 28,974 | (217) | (28,974) | 217 | — | — | — | — |
– transfers to stage 3 | (218) | 7 | (417) | 61 | 635 | (68) | — | — |
– transfers from stage 3 | 131 | (17) | 142 | (28) | (273) | 45 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 138 | — | (103) | — | (4) | — | 31 |
Net new and further lending/repayments | 13,982 | (22) | (5,257) | 45 | (39) | 47 | 8,686 | 70 |
Changes to risk parameters – credit quality | — | 42 | — | (134) | — | (319) | — | (411) |
Changes to models used for ECL calculation | — | (20) | — | (1) | — | (12) | — | (33) |
Assets written off | — | — | — | — | (291) | 291 | (291) | 291 |
At 31 Dec 2025 | 184,419 | (160) | 11,423 | (239) | 927 | (191) | 196,769 | (590) |
ECL income statement change for the period | 138 | (193) | (288) | (343) | ||||
Recoveries | 69 | |||||||
Others | — | |||||||
Total ECL income statement change for the period | (274) | |||||||
At 1 Jan 2024 | 155,612 | (127) | 28,171 | (384) | 1,024 | (202) | 184,807 | (713) |
Transfers of financial instruments | (2,718) | (205) | 2,451 | 199 | 267 | 6 | — | — |
– transfers from stage 1 to stage 2 | (23,178) | 65 | 23,178 | (65) | — | — | — | — |
– transfers from stage 2 to stage 1 | 20,464 | (246) | (20,464) | 246 | — | — | — | — |
– transfers to stage 3 | (234) | 3 | (475) | 73 | 709 | (76) | — | — |
– transfers from stage 3 | 230 | (27) | 212 | (55) | (442) | 82 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 153 | — | (61) | — | (6) | — | 86 |
Net new and further lending/repayments | 9,262 | (26) | (5,299) | 111 | (121) | 46 | 3,842 | 131 |
Change to risk parameters – credit quality | — | 88 | — | (60) | — | (272) | — | (244) |
Changes to models used for ECL calculation | — | (5) | — | (50) | — | (18) | — | (73) |
Assets written off | — | — | — | — | (275) | 275 | (275) | 275 |
At 31 Dec 2024 | 162,156 | (122) | 25,323 | (245) | 895 | (171) | 188,374 | (538) |
ECL income statement change for the period | 210 | (60) | (250) | (100) | ||||
Recoveries | 61 | |||||||
Others | — | |||||||
Total ECL income statement change for the period | (39) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
48 |
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | |
£m | £m | £m | £m | £m | £m | £m | £m | |
At 1 Jan 2025 | 117,991 | (17) | 23,801 | (42) | 571 | (47) | 142,363 | (106) |
Transfers of financial instruments | 9,596 | (37) | (9,778) | 35 | 182 | 2 | — | — |
– transfers from stage 1 to stage 2 | (17,329) | 4 | 17,329 | (4) | — | — | — | — |
– transfers from stage 2 to stage 1 | 26,954 | (37) | (26,954) | 37 | — | — | — | — |
– transfers to stage 3 | (89) | — | (222) | 6 | 311 | (6) | — | — |
– transfers from stage 3 | 60 | (4) | 69 | (4) | (129) | 8 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 19 | — | (12) | — | — | — | 7 |
Net new and further lending/repayments | 11,518 | (1) | (4,700) | 5 | (149) | 5 | 6,669 | 9 |
Change to risk parameters – credit quality | — | 14 | — | (8) | — | (30) | — | (24) |
Changes to models used for ECL calculation | — | 4 | — | (3) | — | — | — | 1 |
Assets written off | — | — | — | — | (11) | 11 | (11) | 11 |
At 31 Dec 2025 | 139,105 | (18) | 9,323 | (25) | 593 | (59) | 149,021 | (102) |
ECL income statement change for the period | 36 | (18) | (25) | (7) | ||||
Recoveries | — | |||||||
Others | — | |||||||
Total ECL income statement change for the period | (7) | |||||||
At 1 Jan 2024 | 113,303 | (19) | 25,510 | (82) | 605 | (60) | 139,418 | (161) |
Transfers of financial instruments | (3,073) | (44) | 2,946 | 43 | 127 | 1 | — | — |
– transfers from stage 1 to stage 2 | (21,016) | 7 | 21,016 | (7) | — | — | — | — |
– transfers from stage 2 to stage 1 | 17,954 | (47) | (17,954) | 47 | — | — | — | — |
– transfers to stage 3 | (61) | — | (170) | 7 | 231 | (7) | — | — |
– transfers from stage 3 | 50 | (4) | 54 | (4) | (104) | 8 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 16 | — | (13) | — | — | — | 3 |
Net new and further lending/repayments | 7,761 | (4) | (4,655) | 7 | (157) | 7 | 2,949 | 10 |
Change to risk parameters – credit quality | — | 34 | — | (1) | — | 1 | — | 34 |
Changes to models used for ECL calculation | — | — | — | 4 | — | — | — | 4 |
Assets written off | — | — | — | — | (4) | 4 | (4) | 4 |
At 31 Dec 2024 | 117,991 | (17) | 23,801 | (42) | 571 | (47) | 142,363 | (106) |
ECL income statement change for the period | 46 | (3) | 8 | 51 | ||||
Recoveries | — | |||||||
Others | — | |||||||
Total ECL income statement change for the period | 51 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
49 |
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | |
£m | £m | £m | £m | £m | £m | £m | £m | |
At 1 Jan 2025 | 30,183 | (47) | 808 | (136) | 125 | (46) | 31,116 | (229) |
Transfers of financial instruments | (874) | (101) | 786 | 117 | 88 | (16) | — | — |
– transfers from stage 1 to stage 2 | (2,071) | 24 | 2,071 | (24) | — | — | — | — |
– transfers from stage 2 to stage 1 | 1,215 | (123) | (1,215) | 123 | — | — | — | — |
– transfers to stage 3 | (55) | 2 | (102) | 28 | 157 | (30) | — | — |
– transfers from stage 3 | 37 | (4) | 32 | (10) | (69) | 14 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 82 | — | (72) | — | (2) | — | 8 |
Net new and further lending/repayments | 1,151 | 2 | (142) | 11 | 60 | 23 | 1,069 | 36 |
Change to risk parameters – credit quality | — | 14 | — | (70) | — | (128) | — | (184) |
Changes to models used for ECL calculation | — | (25) | — | 2 | — | (13) | — | (36) |
Assets written off | — | — | — | — | (135) | 135 | (135) | 135 |
At 31 Dec 2025 | 30,460 | (75) | 1,452 | (148) | 138 | (47) | 32,050 | (270) |
ECL income statement change for the period | 73 | (129) | (120) | (176) | ||||
Recoveries | 39 | |||||||
Others | — | |||||||
Total ECL income statement change for the period | (137) | |||||||
At 1 Jan 2024 | 29,045 | (49) | 1,448 | (166) | 170 | (55) | 30,663 | (270) |
Transfers of financial instruments | 265 | (89) | (323) | 94 | 58 | (5) | — | — |
– transfers from stage 1 to stage 2 | (949) | 31 | 949 | (31) | — | — | — | — |
– transfers from stage 2 to stage 1 | 1,211 | (112) | (1,211) | 112 | — | — | — | — |
– transfers to stage 3 | (106) | 1 | (131) | 31 | 237 | (32) | — | — |
– transfers from stage 3 | 109 | (9) | 70 | (18) | (179) | 27 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 75 | — | (36) | — | (5) | — | 34 |
Net new and further lending/repayments | 873 | (12) | (317) | 62 | 22 | 23 | 578 | 73 |
Change to risk parameters – credit quality | — | 22 | — | (41) | — | (129) | — | (148) |
Changes to models used for ECL calculation | — | 6 | — | (49) | — | — | — | (43) |
Assets written off | — | — | — | — | (125) | 125 | (125) | 125 |
At 31 Dec 2024 | 30,183 | (47) | 808 | (136) | 125 | (46) | 31,116 | (229) |
ECL income statement change for the period | 91 | (64) | (111) | (84) | ||||
Recoveries | 32 | |||||||
Others | — | |||||||
Total ECL income statement change for the period | (52) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
50 |
Other personal lending – reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to customers including loan commitments and financial guarantees | ||||||||
Non-credit impaired | Credit impaired | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | |||||
Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | Gross carrying/ nominal amount | Allow- ance for ECL | |
£m | £m | £m | £m | £m | £m | £m | £m | |
At 1 Jan 2025 | 13,982 | (58) | 714 | (67) | 199 | (78) | 14,895 | (203) |
Transfers of financial instruments | (441) | (38) | 349 | 47 | 92 | (9) | — | — |
– transfers from stage 1 to stage 2 | (1,206) | 23 | 1,206 | (23) | — | — | — | — |
– transfers from stage 2 to stage 1 | 805 | (57) | (805) | 57 | — | — | — | — |
– transfers to stage 3 | (74) | 5 | (93) | 27 | 167 | (32) | — | — |
– transfers from stage 3 | 34 | (9) | 41 | (14) | (75) | 23 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 37 | — | (19) | — | (2) | — | 16 |
Net new and further lending/repayments | 1,313 | (23) | (415) | 29 | 50 | 19 | 948 | 25 |
Change to risk parameters – credit quality | — | 14 | — | (56) | — | (161) | — | (203) |
Changes to models used for ECL calculation | — | 1 | — | — | — | 1 | — | 2 |
Assets written off | — | — | — | — | (145) | 145 | (145) | 145 |
At 31 Dec 2025 | 14,854 | (67) | 648 | (66) | 196 | (85) | 15,698 | (218) |
ECL income statement change for the period | 29 | (46) | (143) | (160) | ||||
Recoveries | 30 | |||||||
Others | — | |||||||
Total ECL income statement change for the period | (130) | |||||||
At 1 Jan 2024 | 13,264 | (59) | 1,213 | (136) | 249 | (87) | 14,726 | (282) |
Transfers of financial instruments | 90 | (72) | (172) | 62 | 82 | 10 | — | — |
– transfers from stage 1 to stage 2 | (1,213) | 27 | 1,213 | (27) | — | — | — | — |
– transfers from stage 2 to stage 1 | 1,299 | (87) | (1,299) | 87 | — | — | — | — |
– transfers to stage 3 | (67) | 2 | (174) | 35 | 241 | (37) | — | — |
– transfers from stage 3 | 71 | (14) | 88 | (33) | (159) | 47 | — | — |
Net remeasurement of ECL arising from transfer of stage | — | 62 | — | (12) | — | (1) | — | 49 |
Net new and further lending/repayments | 628 | (10) | (327) | 42 | 14 | 16 | 315 | 48 |
Change to risk parameters – credit quality | — | 32 | — | (18) | — | (144) | — | (130) |
Changes to models used for ECL calculation | — | (11) | — | (5) | — | (18) | — | (34) |
Assets written off | — | — | — | — | (146) | 146 | (146) | 146 |
At 31 Dec 2024 | 13,982 | (58) | 714 | (67) | 199 | (78) | 14,895 | (203) |
ECL income statement change for the period | 73 | 7 | (147) | (67) | ||||
Recoveries | 29 | |||||||
Others | — | |||||||
Total ECL income statement change for the period | (38) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
51 |
Personal lending – credit risk profile by internal PD band for loans and advances to customers at amortised cost | ||||||||||
Gross carrying amount | Allowance for ECL | |||||||||
PD range1,2 | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | ECL coverage | |
% | £m | £m | £m | £m | £m | £m | £m | £m | % | |
First lien residential mortgages | 129,401 | 9,272 | 587 | 139,260 | (16) | (25) | (59) | (100) | 0.1 | |
– Band 1 | 0.000 to 0.250 | 72,744 | 555 | — | 73,299 | (5) | (3) | — | (8) | — |
– Band 2 | 0.251 to 0.500 | 44,658 | 1,003 | — | 45,661 | (6) | (3) | — | (9) | — |
– Band 3 | 0.501 to 1.500 | 10,775 | 5,990 | — | 16,765 | (3) | (9) | — | (12) | 0.1 |
– Band 4 | 1.501 to 5.000 | 890 | 1,402 | — | 2,292 | (1) | (5) | — | (6) | 0.3 |
– Band 5 | 5.001 to 20.000 | 144 | 216 | — | 360 | — | (2) | — | (2) | 0.6 |
– Band 6 | 20.001 to 99.999 | 190 | 106 | — | 296 | (1) | (3) | — | (4) | 1.4 |
– Band 7 | 100.00 | — | — | 587 | 587 | — | — | (59) | (59) | 10.1 |
Credit cards | 5,603 | 982 | 120 | 6,705 | (65) | (146) | (45) | (256) | 3.8 | |
– Band 1 | 0.000 to 0.250 | 2,360 | — | — | 2,360 | (3) | — | — | (3) | 0.1 |
– Band 2 | 0.251 to 0.500 | 657 | — | — | 657 | (4) | — | — | (4) | 0.6 |
– Band 3 | 0.501 to 1.500 | 1,205 | 43 | — | 1,248 | (13) | (2) | — | (15) | 1.2 |
– Band 4 | 1.501 to 5.000 | 1,058 | 465 | — | 1,523 | (27) | (36) | — | (63) | 4.1 |
– Band 5 | 5.001 to 20.000 | 311 | 392 | — | 703 | (16) | (73) | — | (89) | 12.7 |
– Band 6 | 20.001 to 99.999 | 12 | 82 | — | 94 | (2) | (35) | — | (37) | 39.4 |
– Band 7 | 100.00 | — | — | 120 | 120 | — | — | (45) | (45) | 37.5 |
Other personal lending (excluding credit cards) | 7,947 | 569 | 188 | 8,704 | (68) | (64) | (87) | (219) | 2.5 | |
– Band 1 | 0.000 to 0.250 | 1,803 | 1 | — | 1,804 | (2) | — | — | (2) | 0.1 |
– Band 2 | 0.251 to 0.500 | 697 | — | — | 697 | (1) | — | — | (1) | 0.1 |
– Band 3 | 0.501 to 1.500 | 2,905 | 1 | — | 2,906 | (16) | — | — | (16) | 0.6 |
– Band 4 | 1.501 to 5.000 | 2,250 | 130 | — | 2,380 | (34) | (4) | — | (38) | 1.6 |
– Band 5 | 5.001 to 20.000 | 286 | 380 | — | 666 | (14) | (38) | — | (52) | 7.8 |
– Band 6 | 20.001 to 99.999 | 6 | 57 | — | 63 | (1) | (22) | — | (23) | 36.5 |
– Band 7 | 100.00 | — | — | 188 | 188 | — | — | (87) | (87) | 46.3 |
At 31 Dec 2025 | 142,951 | 10,823 | 895 | 154,669 | (149) | (235) | (191) | (575) | 0.4 | |
First lien residential mortgages | 108,649 | 23,681 | 564 | 132,894 | (15) | (42) | (48) | (105) | 0.1 | |
– Band 1 | 0.000 to 0.250 | 65,282 | 1,174 | — | 66,456 | (6) | (2) | — | (8) | — |
– Band 2 | 0.251 to 0.500 | 36,307 | 9,189 | — | 45,496 | (6) | (8) | — | (14) | — |
– Band 3 | 0.501 to 1.500 | 6,379 | 10,720 | — | 17,099 | (2) | (17) | — | (19) | 0.1 |
– Band 4 | 1.501 to 5.000 | 518 | 1,985 | — | 2,503 | — | (8) | — | (8) | 0.3 |
– Band 5 | 5.001 to 20.000 | 75 | 421 | — | 496 | — | (3) | — | (3) | 0.6 |
– Band 6 | 20.001 to 99.999 | 88 | 192 | — | 280 | (1) | (4) | — | (5) | 1.8 |
– Band 7 | 100.00 | — | — | 564 | 564 | — | — | (48) | (48) | 8.5 |
Credit cards | 5,574 | 645 | 105 | 6,324 | (42) | (137) | (46) | (225) | 3.6 | |
– Band 1 | 0.000 to 0.250 | 2,395 | — | — | 2,395 | (3) | — | — | (3) | 0.1 |
– Band 2 | 0.251 to 0.500 | 777 | — | — | 777 | (3) | — | — | (3) | 0.4 |
– Band 3 | 0.501 to 1.500 | 1,156 | — | — | 1,156 | (10) | — | — | (10) | 0.9 |
– Band 4 | 1.501 to 5.000 | 1,246 | — | — | 1,246 | (26) | — | — | (26) | 2.1 |
– Band 5 | 5.001 to 20.000 | — | 600 | — | 600 | — | (118) | — | (118) | 19.7 |
– Band 6 | 20.001 to 99.999 | — | 45 | — | 45 | — | (19) | — | (19) | 42.2 |
– Band 7 | 100.00 | — | — | 105 | 105 | — | — | (46) | (46) | 43.8 |
Other personal lending (excluding credit cards) | 7,215 | 645 | 188 | 8,048 | (60) | (66) | (75) | (201) | 2.5 | |
– Band 1 | 0.000 to 0.250 | 1,184 | 1 | — | 1,185 | (1) | — | — | (1) | 0.1 |
– Band 2 | 0.251 to 0.500 | 870 | — | — | 870 | (1) | — | — | (1) | 0.1 |
– Band 3 | 0.501 to 1.500 | 2,555 | 11 | — | 2,566 | (14) | — | — | (14) | 0.5 |
– Band 4 | 1.501 to 5.000 | 2,228 | 190 | — | 2,418 | (29) | (7) | — | (36) | 1.5 |
– Band 5 | 5.001 to 20.000 | 373 | 317 | — | 690 | (14) | (30) | — | (44) | 6.4 |
– Band 6 | 20.001 to 99.999 | 5 | 126 | — | 131 | (1) | (29) | — | (30) | 22.9 |
– Band 7 | 100.00 | — | — | 188 | 188 | — | — | (75) | (75) | 39.9 |
At 31 Dec 2024 | 121,438 | 24,971 | 857 | 147,266 | (117) | (245) | (169) | (531) | 0.4 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
52 |
Personal lending – credit risk profile by internal PD band for loan and other credit-related commitments and financial guarantees | ||||||||||
Nominal amount | Allowance for ECL | |||||||||
PD range1 | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | ECL coverage | |
% | £m | £m | £m | £m | £m | £m | £m | £m | % | |
Loan and other credit- related commitments | 41,165 | 600 | 32 | 41,797 | (11) | (4) | — | (15) | — | |
– Band 1 | 0.000 to 0.250 | 31,597 | 38 | — | 31,635 | (4) | — | — | (4) | — |
– Band 2 | 0.251 to 0.500 | 3,317 | 42 | — | 3,359 | (1) | — | — | (1) | — |
– Band 3 | 0.501 to 1.500 | 4,265 | 49 | — | 4,314 | (4) | — | — | (4) | 0.1 |
– Band 4 | 1.501 to 5.000 | 1,748 | 317 | — | 2,065 | (2) | (3) | — | (5) | 0.2 |
– Band 5 | 5.001 to 20.000 | 235 | 122 | — | 357 | — | — | — | — | — |
– Band 6 | 20.001 to 99.999 | 3 | 32 | — | 35 | — | (1) | — | (1) | 2.9 |
– Band 7 | 100.000 | — | — | 32 | 32 | — | — | — | — | — |
Financial guarantees | 303 | — | — | 303 | — | — | — | — | — | |
– Band 1 | 0.000 to 0.250 | 303 | — | — | 303 | — | — | — | — | — |
– Band 2 | 0.251 to 0.500 | — | — | — | — | — | — | — | — | — |
– Band 3 | 0.501 to 1.500 | — | — | — | — | — | — | — | — | — |
– Band 4 | 1.501 to 5.000 | — | — | — | — | — | — | — | — | — |
– Band 5 | 5.001 to 20.000 | — | — | — | — | — | — | — | — | — |
– Band 6 | 20.001 to 99.999 | — | — | — | — | — | — | — | — | — |
– Band 7 | 100.000 | — | — | — | — | — | — | — | — | — |
At 31 Dec 2025 | 41,468 | 600 | 32 | 42,100 | (11) | (4) | — | (15) | — | |
Loan and other credit- related commitments | 40,412 | 345 | 38 | 40,795 | (5) | — | (2) | (7) | — | |
– Band 1 | 0.000 to 0.250 | 33,780 | 44 | — | 33,824 | (4) | — | — | (4) | — |
– Band 2 | 0.251 to 0.500 | 2,109 | 1 | — | 2,110 | (1) | — | — | (1) | — |
– Band 3 | 0.501 to 1.500 | 2,210 | 4 | — | 2,214 | — | — | — | — | — |
– Band 4 | 1.501 to 5.000 | 2,051 | 51 | — | 2,102 | — | — | — | — | — |
– Band 5 | 5.001 to 20.000 | 216 | 207 | — | 423 | — | — | — | — | — |
– Band 6 | 20.001 to 99.999 | 46 | 38 | — | 84 | — | — | — | — | — |
– Band 7 | 100.000 | — | — | 38 | 38 | — | — | (2) | (2) | 5.3 |
Financial guarantees | 306 | 7 | — | 313 | — | — | — | — | — | |
– Band 1 | 0.000 to 0.250 | — | — | — | — | — | — | — | — | — |
– Band 2 | 0.251 to 0.500 | 290 | — | — | 290 | — | — | — | — | — |
– Band 3 | 0.501 to 1.500 | 14 | — | — | 14 | — | — | — | — | — |
– Band 4 | 1.501 to 5.000 | — | — | — | — | — | — | — | — | — |
– Band 5 | 5.001 to 20.000 | 2 | 7 | — | 9 | — | — | — | — | — |
– Band 6 | 20.001 to 99.999 | — | — | — | — | — | — | — | — | — |
– Band 7 | 100.000 | — | — | — | — | — | — | — | — | — |
At 31 Dec 2024 | 40,718 | 352 | 38 | 41,108 | (5) | — | (2) | (7) | — |
HSBC UK Bank plc Annual Report and Accounts 2025 |
53 |
Personal lending: residential mortgage loans including loan commitments by level of collateral | ||||||||
Gross carrying/nominal amount | ECL coverage | |||||||
Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |
£m | £m | £m | £m | % | % | % | % | |
Fully collateralised by LTV ratio | 139,069 | 9,322 | 588 | 148,979 | — | 0.3 | 9.9 | 0.1 |
– less than 50% | 56,928 | 5,096 | 301 | 62,325 | — | 0.1 | 8.3 | 0.1 |
– 51% to 70% | 44,840 | 2,940 | 184 | 47,964 | — | 0.3 | 8.7 | 0.1 |
– 71% to 80% | 18,485 | 872 | 61 | 19,418 | — | 0.6 | 14.8 | 0.1 |
– 81% to 90% | 16,390 | 386 | 34 | 16,810 | — | 0.8 | 17.6 | 0.1 |
– 91% to 100% | 2,426 | 28 | 8 | 2,462 | — | — | 25.0 | 0.1 |
Partially collateralised (A): LTV > 100% | 36 | 1 | 5 | 42 | — | — | 40.0 | 4.8 |
– collateral value on A | 18 | — | 5 | 23 | ||||
Total at 31 Dec 2025 | 139,105 | 9,323 | 593 | 149,021 | — | 0.3 | 10.1 | 0.1 |
Fully collateralised by LTV ratio | 117,879 | 23,789 | 567 | 142,235 | — | 0.2 | 8.3 | 0.1 |
– less than 50% | 48,999 | 12,995 | 340 | 62,334 | — | 0.1 | 7.1 | 0.1 |
– 51% to 70% | 39,117 | 8,126 | 151 | 47,394 | — | 0.2 | 9.3 | 0.1 |
– 71% to 80% | 15,943 | 1,888 | 50 | 17,881 | — | 0.4 | 12.0 | 0.1 |
– 81% to 90% | 12,554 | 730 | 18 | 13,302 | — | 0.5 | 11.1 | 0.1 |
– 91% to 100% | 1,266 | 50 | 8 | 1,324 | — | — | 12.5 | 0.2 |
Partially collateralised (A): LTV > 100% | 112 | 12 | 4 | 128 | — | — | 25.0 | 0.8 |
– collateral value on A | 87 | 9 | 3 | 99 | ||||
Total at 31 Dec 2024 | 117,991 | 23,801 | 571 | 142,363 | — | 0.2 | 8.4 | 0.1 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
54 |
Non-Trading risk | ||||
Risk types | – Interest rates – Credit spreads | |||
Risk measure | Value at risk | Sensitivity | Stress testing | |||
HSBC UK Bank plc Annual Report and Accounts 2025 |
55 |
Weekly VaR (non-trading portfolios), 99% 10 day (£m) |
Dec-24 | Jan-25 | Feb-25 | Mar-25 | April-25 | May-25 | Jun-25 | Jul-25 | Aug-25 | Sep-25 | Oct-25 | Nov-25 | Dec-25 |
Non-trading VaR, 99% 10 day | ||||
Credit spread | Interest Rates | Portfolio Diversification 1 | Total2 | |
£m | £m | £m | £m | |
Balance at 31 Dec 2025 | 5.1 | 104.2 | (1.1) | 108.2 |
Average | 6.6 | 106.3 | (1.9) | 111.0 |
Maximum | 8.4 | 124.0 | 128.1 | |
Minimum | 4.5 | 98.4 | 100.6 | |
Balance at 31 Dec 2024 | 7.2 | 114.4 | (3.1) | 118.6 |
Average | 6.4 | 122.3 | (3.9) | 124.8 |
Maximum | 7.9 | 168.4 | 170.6 | |
Minimum | 5.2 | 86.3 | 87.7 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
56 |
Capital adequacy metrics | ||
At 31 Dec | ||
2025 | 2024 | |
Available capital (£m) | ||
Common equity tier 1 capital | 15,509 | 15,059 |
Tier 1 capital | 18,218 | 17,307 |
Total regulatory capital | 21,888 | 20,500 |
Risk-weighted assets (£m) | ||
Credit risk | 100,297 | 94,418 |
Counterparty credit risk | 255 | 243 |
Market risk | 97 | 173 |
Operational risk | 16,814 | 15,589 |
Total risk-weighted assets | 117,463 | 110,423 |
Capital ratios (%) | ||
Common equity tier 1 | 13.2 | 13.6 |
Total tier 1 | 15.5 | 15.7 |
Total capital | 18.6 | 18.6 |
Leverage ratio | ||
Total leverage ratio exposure measure (£m) | 325,950 | 297,157 |
Leverage ratio (%) | 5.6 | 5.8 |
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Own funds disclosure | |||
At | |||
31 Dec 2025 | 31 Dec 2024 | ||
Ref* | £m | £m | |
CET1 capital: instruments and reserves | |||
1 | Capital instruments and the related share premium accounts1 | — | — |
– ordinary shares1 | — | — | |
2 | Retained earnings | 21,494 | 20,154 |
3 | Accumulated other comprehensive income (and other reserves) | 2,388 | 1,580 |
5a | Independently reviewed net profits net of any foreseeable charge or dividend | 593 | 1,387 |
6 | CET1 capital before regulatory adjustments | 24,475 | 23,121 |
28 | Total regulatory adjustments to common equity tier 1 | (8,966) | (8,062) |
29 | CET1 capital | 15,509 | 15,059 |
36 | Additional tier 1 capital before regulatory adjustments | 2,709 | 2,248 |
44 | Additional tier 1 capital | 2,709 | 2,248 |
45 | Tier 1 Capital (T1 = CET1 + AT1) | 18,218 | 17,307 |
51 | Tier 2 capital before regulatory adjustments | 3,670 | 3,193 |
58 | Tier 2 capital | 3,670 | 3,193 |
59 | Total capital | 21,888 | 20,500 |
RWA movement by business by key driver | |||||||
Credit risk, counterparty credit risk and operational risk | Market risk | Total RWAs | |||||
Retail Banking and Wealth | Private Bank | Commercial Banking | Corporate Institutional Banking | Corporate Centre | |||
£m | £m | £m | £m | £m | £m | £m | |
RWAs at 1 Jan 2025 | 34,465 | 1,887 | 71,604 | 574 | 1,720 | 173 | 110,423 |
Acquisitions and disposals | — | — | — | — | — | — | — |
Asset size | 1,648 | (34) | 9,858 | 58 | (214) | (69) | 11,247 |
Asset quality | 1,126 | 98 | (362) | — | 24 | — | 886 |
Model updates | (543) | — | 146 | — | 2 | — | (395) |
– new/updated models | (543) | — | 146 | — | 2 | — | (395) |
Methodology and policy | 428 | (60) | (4,996) | — | 50 | — | (4,578) |
– internal updates | 428 | (60) | (4,996) | — | 50 | — | (4,578) |
Foreign exchange movement | — | 11 | (52) | (10) | (62) | (7) | (120) |
Total RWA movement | 2,659 | 15 | 4,594 | 48 | (200) | (76) | 7,040 |
RWAs at 31 Dec 2025 | 37,124 | 1,902 | 76,198 | 622 | 1,520 | 97 | 117,463 |
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HSBC UK Bank Domestic Liquidity Sub-group1 | ||
Average for | ||
2025 | 2024 | |
LCR (%) | 175 | 190 |
High-quality liquid assets (£m) | 93,670 | 91,348 |
Net outflows (£m) | 53,471 | 48,057 |
NSFR (%) | 146 | 154 |
Liquidity pool | Cash | Level 1 | Level 2 | |
£m | £m | £m | £m | |
Cash and balance at central bank | 42,134 | 42,134 | — | — |
Central and local government bonds | 46,640 | — | 45,102 | 1,538 |
Regional government public sector entities | 179 | — | 179 | — |
International organisation and multilateral developments banks | 2,290 | — | 2,290 | — |
Covered bonds | 2,226 | — | 793 | 1,433 |
Other | 201 | — | — | 201 |
Average Total for 2025 | 93,670 | 42,134 | 48,364 | 3,172 |
Average Total for 2024 | 91,348 | 54,033 | 34,767 | 2,548 |
£ | $ | € | Other | Total | |
£m | £m | £m | £m | £m | |
Average Liquidity Pool for 2025 | 73,871 | 9,698 | 6,813 | 3,288 | 93,670 |
Average Liquidity Pool for 2024 | 77,403 | 8,034 | 3,365 | 2,546 | 91,348 |
Funding Sources | ||
2025 | 2024 | |
£m | £m | |
Sources | ||
Customer accounts | 288,756 | 280,366 |
Deposits by banks | 7,709 | 11,144 |
Repurchase agreements – non-trading | 6,276 | 420 |
Debt securities in issue | 3,019 | 2,044 |
Cash collateral, margin, settlement accounts and items in the course of transmission to other banks | 411 | 449 |
Subordinated liabilities | 16,423 | 15,686 |
Total equity | 28,261 | 25,971 |
Other balance sheet liabilities | 5,075 | 4,797 |
At 31 Dec | 355,930 | 340,877 |
Funding Uses | ||
2025 | 2024 | |
£m | £m | |
Uses | ||
Loans and advances to customers | 231,223 | 217,604 |
Loans and advances to banks | 6,636 | 7,263 |
Reverse repurchase agreements – non-trading | 21,560 | 11,776 |
Cash collateral, margin, settlement and items in the course of collection from other banks accounts | 1,136 | 1,196 |
Financial investments | 41,638 | 37,801 |
Cash and balances with Central banks | 40,369 | 52,276 |
Other balance sheet assets | 13,368 | 12,961 |
At 31 Dec | 355,930 | 340,877 |
Trading risk | |
Risk types | – Foreign exchange – Interest rates |
Risk measure | VaR | Sensitivity | Stress testing |
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Page | |
Stakeholder Engagement | Stakeholder engagement and Section 172(1) on page 5 |
Employee Engagement | Stakeholder engagement and Section 172(1) on page 5 |
Results and Dividends | Financial summary on pages 11 to 13 and Note 6 of the Financial statements on page 98 |
Hedge accounting policy | Note 9 of the Financial Statements on page 101 |
Future Developments | Strategic report 'Our purpose, values and strategy' on pages 3 to 4 |
Post Balance Sheet Events | Note 28 of the Financial statements on page 121 |
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Key audit matter | How our audit addressed the key audit matter |
Determining ECL involves management judgement and is subject to a high degree of estimation uncertainty. Management makes various assumptions when estimating ECL. We performed a risk assessment to identify those assumptions with significant levels of management judgement and for which variations had the most material impact on ECL. Assumptions were made in determining economic scenarios and their probability weightings. The level of estimation uncertainty and judgement in this area has remained high as a result of tariff and trade policy developments and geopolitical environment. The fast moving nature of trade and tariff policy developments and geopolitical volatility required additional focus in the year from management in determining economic scenarios and their probability weightings in the year, and from us in auditing those judgements and assumptions which most drove estimation uncertainty in ECL. Judgement is also involved in determining the estimated loss for the individually assessed, wholesale credit impaired cases, specifically around cash flow assumptions. The modelling methodologies used to estimate ECL are developed using historical experience. We assess the impact of limitations in these methodologies when forecasting the extent and timing of future customer defaults or when responding to emerging risks, such as climate risk. The focus of our assessment of the impact of climate risk on ECL was to evaluate management’s risk assessment process for identifying, quantifying and concluding that the impact of climate risk on ECL for the year end was immaterial. | We reported to the Audit Committee our observations covering governance and controls, the assumptions used, and the modelling methodologies implemented by management in determining ECL, with a significant focus on the uncertain prevailing macroeconomic conditions. Our observations regarded: – the determination of economic scenarios, and their related probability weightings. In particular we discussed the potential economic consequences of trade and tariff policy developments and geopolitical events and whether the economic scenarios and weightings adequately captured future potential economic risks in this area; – significant assumptions used to estimate the discounted cash flow projections for larger individually assessed credit impaired wholesale exposures; and – the disclosures made in relation to ECL. |
How our audit addressed the key audit matter | |
We assessed the effectiveness of governance and controls over the estimation of ECL. We observed management’s review and challenge in key governance forums for (1) the determination of economic scenarios and their probability weightings, and (2) the assessment of ECL for retail and wholesale portfolios. We also tested controls over: – model validation and monitoring; – credit reviews that determine credit risk ratings (‘CRRs’) for wholesale customers; – the input of critical data into source systems and the flow and transformation of critical data from source systems to impairment models; and – the approval impairments of individually assessed, credit impaired wholesale exposures. We involved our economic experts in assessing the significant assumptions made in determining the severity and probability weighting of economic scenarios. We focused on whether the scenarios adequately captured future potential economic risks, such as risks caused by tariff and trade policy developments and the geopolitical environment. These assessments considered the sensitivity of ECLs to variations in the severity and probability weighting of economic scenarios. We also involved our modelling specialists in assessing the appropriateness of the significant assumptions and methodologies used for ECL models. We independently re-performed the ECL calculations for a sample of those models. We further considered whether the judgements made in selecting the significant assumptions would give rise to indicators of possible management bias. In respect to a sample of individually assessed credit impaired wholesale exposures, we assessed the significant assumptions used to estimate the discounted cash flow projections, and where appropriate we involved experts to assess the underlying collateral or business valuations. | |
We evaluated management’s risk assessment in respect of the impact of climate change on the ECL provision, including involving our modelling specialists to evaluate the stress testing and scenario analysis methodology used and sensitising key assumptions. Finally, we tested the audited Credit Risk disclosures made in the Annual Report. | |
Relevant references in the Annual Report and Accounts 2025 | |
Audited credit risk disclosures, Note 1.2(e): Financial instruments measured at amortised cost and Note 1.2(h): Impairment of amortised cost and FVOCI financial assets. | |
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Valuation of the defined benefit obligation (group and parent) | |
Key audit matter | Matters discussed with the Audit Committee |
The Group operates a defined benefit pension scheme for its employees, which relates to HSBC Bank (UK) pension scheme ('the principal plan'). As of 31 December 2025, the principal plan is in a surplus of £5,262m (2024: £5,126m). This is made up of defined benefit obligation of £13,397m (2024: £13,730m) and plan assets of £18,659m (2024: £18,856m). The present value of the defined benefit obligation is materially sensitive to certain actuarial assumptions. We consider the discount rate, inflation and mortality rates to be the most significant assumptions used in determining the defined benefit obligation. Changes in these assumptions gives rise to estimation uncertainty due to their subjectivity and the long duration of the pension liabilities. Management performs a review of the valuation methodology and significant assumptions each year, using third party actuarial experts. The assumptions are updated to reflect market practice and future outlook. The valuation methodology also uses a number of market- based inputs and other financial and demographic assumptions. | We discussed the significant assumptions used by management to determine the value of the defined benefit obligation including the results of the work performed by our actuarial experts. |
How our audit addressed the key audit matter | |
We obtained and reviewed management’s experts' report to confirm our understanding of the methodology and key assumptions adopted in calculating the valuation of the defined benefit obligation. We considered the independence, objectivity and competence of the third-party actuary engaged by management to perform their valuation. We tested effectiveness of controls in place to oversee the appropriateness of the methodology and the significant assumptions, including those in relation to the use of management's experts. We independently assessed, using our own actuarial experts, the discount rate, inflation, mortality rates, as well as other demographic and financial assumptions. We compared them to external market rates as at 31 December 2025 for schemes of a similar duration. We tested the defined benefit obligation disclosures within the financial statements, including the disclosure regarding the sensitivity of significant assumptions. | |
Relevant references in the Annual Report and Accounts 2025 | |
Note 1.2 (h): Employee compensation and benefits | |
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Financial statements - group | Financial statements - parent company | |
Overall materiality | £280m (2024: £282m) | £264m (2024: £267.5m) |
How we determined it | 5% of profit before tax | 5% of profit before tax |
Rationale for benchmark applied | A benchmark of profit before tax has been used, this reflects the primary measure used by shareholders in assessing the performance of the group. | A benchmark of profit before tax has been used, this reflects the primary measure used by shareholders in assessing the performance of the parent. |
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Contents | ||
Consolidated income statement | ||
Consolidated statement of comprehensive income | ||
Consolidated balance sheet | ||
Consolidated statement of changes in equity | ||
Consolidated statement of cash flows | ||
HSBC UK Bank plc balance sheet | ||
HSBC UK Bank plc statement of changes in equity | ||
HSBC UK Bank plc statement of cash flows | ||
1 | Basis of preparation and material accounting policies | 17 | Debt securities in issue | |||
2 | Net fee income | 18 | Accruals, deferred income and other liabilities | |||
3 | Employee compensation and benefits | 19 | Provisions | |||
4 | Auditors’ remuneration | 20 | Subordinated liabilities | |||
5 | Tax | 21 | Maturity analysis of assets, liabilities and off-balance sheet commitments | |||
6 | Dividends | |||||
7 | Fair values of financial instruments carried at fair value | 22 | Offsetting of financial assets and financial liabilities | |||
8 | Fair values of financial instruments not carried at fair value | 23 | Called up share capital and other equity instruments | |||
9 | Derivatives | 24 | Contingent liabilities, contractual commitments, guarantees and contingent assets | |||
10 | Financial investments | |||||
11 | Assets pledged, collateral received and assets transferred | 25 | Finance lease receivables | |||
12 | Interests in joint ventures | 26 | Legal proceedings and regulatory matters | |||
13 | Investments in subsidiaries | 27 | Related party transactions | |||
14 | Structured entities | 28 | Events after the balance sheet date | |||
15 | Goodwill and intangible assets | 29 | HSBC UK Bank plc’s subsidiaries and joint ventures | |||
16 | Prepayments, accrued income and other assets | |||||
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for the year ended 31 December | |||
2025 | 2024 | ||
Notes | £m | £m | |
Net interest income | |||
– interest income1,2,3 | |||
– interest expense | ( | ( | |
Net fee income | 2 | ||
– fee income | |||
– fee expense | ( | ( | |
Net income from financial instruments held for trading or managed on a fair value basis | |||
Other operating income | |||
Net operating income before change in expected credit losses and other credit impairment charges | |||
Change in expected credit losses and other credit impairment charges | ( | ( | |
Net operating income | |||
Employee compensation and benefits | 3 | ( | ( |
General and administrative expenses | ( | ( | |
Depreciation and impairment of property, plant and equipment and right-of-use assets | ( | ( | |
Total operating expenses excluding amortisation and impairment of intangible assets | ( | ( | |
Amortisation and impairment of intangible assets | ( | ( | |
Total operating expenses | ( | ( | |
Operating profit | |||
Profit before tax | |||
Tax expense | 5 | ( | ( |
Profit for the year | |||
Attributable to: | |||
– ordinary shareholder | |||
– non-controlling interests | |||
Profit for the year | |||
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for the year ended 31 December | ||
2025 | 2024 | |
£m | £m | |
Profit for the year | ||
Other comprehensive income/(expense) | ||
Items that will be reclassified subsequently to profit or loss when specific conditions are met: | ||
Debt instruments at fair value through other comprehensive income | ( | |
– fair value gains/(losses) | ( | |
– fair value gains transferred to the income statement on disposal | ( | ( |
– income taxes | ( | |
Cash flow hedges | ( | |
– fair value gains/(losses) | ( | |
– fair value losses reclassified to the income statement | ||
– income taxes | ( | |
Exchange differences | ||
– other exchange differences | ||
Items that will not be reclassified subsequently to profit or loss: | ||
Remeasurement of defined benefit asset | ( | ( |
– before income taxes | ( | ( |
– income taxes | ||
Other comprehensive income/(expense) for the year, net of tax | ( | |
Total comprehensive income for the year | ||
Attributable to: | ||
– ordinary shareholder | ||
– non-controlling interests | ||
Total comprehensive income for the year | ||
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at 31 December | |||
2025 | 2024 | ||
Notes | £m | £m | |
Assets | |||
Cash and balances at central banks | |||
Financial assets mandatorily measured at fair value through profit or loss | 7 | ||
Derivatives | 9 | ||
Loans and advances to banks | |||
Loans and advances to customers | |||
Reverse repurchase agreements – non-trading | |||
Financial investments | 10 | ||
Prepayments, accrued income and other assets | 16 | ||
Current tax assets | |||
Interests in joint ventures | 12 | ||
Goodwill and intangible assets | 15 | ||
Total assets | |||
Liabilities and equity | |||
Liabilities | |||
Deposits by banks | |||
Customer accounts | |||
Repurchase agreements – non-trading | |||
Derivatives | 9 | ||
Debt securities in issue | 17 | ||
Accruals, deferred income and other liabilities | 18 | ||
Current tax liabilities | |||
Provisions | 19 | ||
Deferred tax liabilities | 5 | ||
Subordinated liabilities | 20 | ||
Total liabilities | |||
Equity | |||
Called up share capital | 23 | ||
Share premium account | 23 | ||
Other equity instruments | 23 | ||
Other reserves | |||
Retained earnings | |||
Total shareholders’ equity | |||
Non-controlling interests | |||
Total equity | |||
Total liabilities and equity | |||
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for the year ended 31 December | |||||||||
Other reserves | |||||||||
Called up share capital and share premium | Other equity instru- ments | Retained earnings | Financial assets at FVOCI reserve | Cash flow hedging reserve | Group re- organisati- on reserve4 | Total share- holders’ equity | Non- controlling interests | Total equity | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | |
At 1 Jan 2025 | ( | ( | |||||||
Profit for the year | — | — | — | — | — | ||||
Other comprehensive income (net of tax) | — | — | ( | — | — | ||||
– debt instruments at fair value through other comprehensive income | — | — | — | — | — | — | |||
– cash flow hedges | — | — | — | — | — | — | |||
– remeasurement of defined benefit asset/ liability | — | — | ( | — | — | — | ( | — | ( |
– exchange differences | — | — | — | — | — | — | |||
Total comprehensive income for the year | — | — | — | ||||||
Issue of other equity instruments1 | — | — | — | — | — | — | |||
Dividends to shareholders | — | — | ( | — | — | — | ( | ( | ( |
Share premium reclassification to retained earnings3 | — | — | — | — | — | — | — | ||
Capitalisation of Group reorganisation reserve through bonus share issuance3 | — | — | — | — | — | — | — | ||
Cancellation of bonus shares3 | — | — | — | — | — | — | — | ||
Other movements2 | — | — | — | — | — | ( | ( | ||
At 31 Dec 2025 | ( | ||||||||
At 1 Jan 2024 | ( | ( | |||||||
Profit for the year | — | — | — | — | — | ||||
Other comprehensive income (net of tax) | — | — | ( | ( | ( | — | ( | — | ( |
– debt instruments at fair value through other comprehensive income | — | — | — | ( | — | — | ( | — | ( |
– cash flow hedges | — | — | — | — | ( | — | ( | — | ( |
– remeasurement of defined benefit asset/ liability | — | — | ( | — | — | — | ( | — | ( |
– exchange differences | — | — | — | — | — | — | |||
Total comprehensive income for the year | — | — | ( | ( | — | ||||
Issue of other equity instruments | — | — | — | — | — | — | — | ||
Dividends to shareholders | — | — | ( | — | — | — | ( | ( | ( |
Share premium reclassification to retained earnings3 | ( | — | — | — | — | — | |||
Capitalisation of Group reorganisation reserve through bonus share issuance3 | — | — | — | — | ( | — | |||
Cancellation of bonus shares3 | ( | — | — | — | — | — | |||
Other movements2 | — | — | — | — | — | — | |||
At 31 Dec 2024 | ( | ( | |||||||
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for the year ended 31 December | ||
2025 | 2024 | |
£m | £m | |
Profit before tax | ||
Adjustments for non-cash items: | ||
Depreciation, amortisation and impairment | ||
Net gain from investing activities | ( | ( |
Change in expected credit losses gross of recoveries and other credit impairment charges | ||
Provisions including pensions | ( | ( |
Share-based payment expense | ||
Other non-cash items included in profit before tax | ( | ( |
Elimination of exchange differences1 | ||
Changes in operating assets and liabilities | ||
Change in net trading securities and derivatives | ( | |
Change in loans and advances to banks and customers | ( | ( |
Change in reverse repurchase agreements – non-trading | ( | ( |
Change in financial assets mandatorily measured at fair value | ( | ( |
Change in other assets | ( | ( |
Change in deposits by banks and customer accounts | ||
Change in repurchase agreements – non-trading | ( | |
Change in debt securities in issue | ||
Change in other liabilities | ( | ( |
Contributions paid to defined benefit plans | ( | |
Tax paid | ( | ( |
Net cash from operating activities | ( | |
Purchase of financial investments | ( | ( |
Proceeds from the sale and maturity of financial investments | ||
Proceeds from sale of property, plant and equipment | ||
Purchase of property, plant and equipment | ( | ( |
Purchase of intangible assets | ( | ( |
Proceeds from sale of intangible assets | ||
Net cash flow on acquisition of subsidiaries, businesses and joint venture | ||
Net cash from investing activities | ( | ( |
Issue of ordinary share capital and other equity instruments | ||
Subordinated loan capital issued2 | ||
Subordinated loan capital repaid2 | ( | ( |
Dividends paid to shareholders of the parent company and non-controlling interests | ( | ( |
Repayment of other equity instruments to non-controlling interests | ( | |
Net cash from financing activities | ( | ( |
Net decrease in cash and cash equivalents | ( | ( |
Cash and cash equivalents at 1 Jan | ||
Exchange differences in respect of cash and cash equivalents | ( | |
Cash and cash equivalents at 31 Dec3 | ||
Cash and cash equivalents comprise: | ||
– cash and balances at central banks | ||
– loans and advances to banks of one month or less | ||
– reverse repurchase agreements with banks of one month or less | ||
– treasury bills, other bills and certificates of deposit less than three months | ||
– cash collateral, net settlement accounts and items in course of collection from/transmission to other banks | ( | |
Cash and cash equivalents at 31 Dec3 | ||
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at 31 December | |||
2025 | 2024 | ||
Notes | £m | £m | |
Assets | |||
Cash and balances at central banks | 40,368 | 52,275 | |
Financial assets mandatorily measured at fair value through profit or loss | 7 | 175 | 174 |
Derivatives | 9 | 163 | 295 |
Loans and advances to banks | 13,325 | 13,070 | |
Loans and advances to customers | 219,070 | 206,187 | |
Reverse repurchase agreements – non-trading | 21,560 | 11,776 | |
Financial investments | 10 | 41,449 | 37,597 |
Investments in subsidiaries | 13 | 1,000 | 1,148 |
Prepayments, accrued income and other assets | 16 | 9,516 | 9,226 |
Interests in joint ventures | 12 | 5 | 5 |
Goodwill and intangible assets | 15 | 1,282 | 1,221 |
Total assets | 347,913 | 332,974 | |
Liabilities and equity | |||
Liabilities | |||
Deposits by banks | 12,096 | 14,780 | |
Customer accounts | 282,274 | 274,160 | |
Repurchase agreements – non-trading | 6,276 | 420 | |
Derivatives | 9 | 162 | 107 |
Debt securities in issue | 17 | 2,100 | 1,621 |
Accruals, deferred income and other liabilities | 18 | 3,326 | 3,244 |
Current tax liabilities | 97 | 281 | |
Provisions | 19 | 243 | 246 |
Deferred tax liabilities | 5 | 1,338 | 971 |
Subordinated liabilities | 20 | 16,423 | 15,686 |
Total liabilities | 324,335 | 311,516 | |
Equity | |||
Called up share capital | 23 | — | — |
Share premium account | 23 | — | — |
Other equity instruments | 23 | 2,691 | 2,196 |
Other reserves | (59) | (866) | |
Retained earnings | 20,946 | 20,128 | |
Total equity | 23,578 | 21,458 | |
Total liabilities and equity | 347,913 | 332,974 | |
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for the year ended 31 December | |||||||
Other reserves | |||||||
Called up share capital and share premium | Other equity instruments | Retained earnings | Financial assets at FVOCI reserve | Cash flow hedging reserve | Group reorganisation reserve4 | Total share- holders’ equity | |
£m | £m | £m | £m | £m | £m | £m | |
At 1 Jan 2025 | — | 2,196 | 20,128 | (208) | (658) | — | 21,458 |
Profit for the year | — | — | 3,888 | — | — | — | 3,888 |
Other comprehensive expense (net of tax) | — | — | (80) | 73 | 734 | — | 727 |
– debt instruments at fair value through other comprehensive income | — | — | — | 72 | — | — | 72 |
– cash flow hedges | — | — | — | — | 734 | — | 734 |
– remeasurement of defined benefit asset/ liability | — | — | (80) | — | — | — | (80) |
– exchange differences | — | — | — | 1 | — | — | 1 |
Total comprehensive income for the year | — | — | 3,808 | 73 | 734 | — | 4,615 |
Issue of other equity instruments1 | — | 495 | — | — | — | — | 495 |
Dividends to shareholders | — | — | (3,023) | — | — | — | (3,023) |
Share premium reclassification to retained earnings3 | — | — | — | — | — | — | — |
Capitalisation of Group reorganisation reserve through bonus share issuance3 | — | — | — | — | — | — | — |
Cancellation of bonus shares3 | — | — | — | — | — | — | — |
Other movements2 | — | — | 33 | — | — | — | 33 |
At 31 Dec 2025 | — | 2,691 | 20,946 | (135) | 76 | — | 23,578 |
At 1 Jan 2024 | 9,015 | 2,196 | 5,578 | (178) | (293) | 5,248 | 21,566 |
Profit for the year | — | — | 4,125 | — | — | — | 4,125 |
Other comprehensive income (net of tax) | — | — | (285) | (30) | (365) | — | (680) |
– debt instruments at fair value through other comprehensive income | — | — | — | (31) | — | — | (31) |
– cash flow hedges | — | — | — | — | (365) | — | (365) |
– remeasurement of defined benefit asset/ liability | — | — | (285) | — | — | — | (285) |
– exchange differences | — | — | — | 1 | — | — | 1 |
Total comprehensive income for the year | — | — | 3,840 | (30) | (365) | — | 3,445 |
Issue of other equity instruments | — | — | — | — | — | — | — |
Dividends to shareholders | — | — | (3,564) | — | — | — | (3,564) |
Share premium reclassification to retained earnings3 | (9,015) | — | 9,015 | — | — | — | — |
Capitalisation of Group reorganisation reserve through bonus share issuance3 | 5,248 | — | — | — | — | (5,248) | — |
Cancellation of bonus shares3 | (5,248) | — | 5,248 | — | — | — | — |
Other movements2 | — | — | 11 | — | — | — | 11 |
At 31 Dec 2024 | — | 2,196 | 20,128 | (208) | (658) | — | 21,458 |
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2025 | 2024 | |
£m | £m | |
Profit before tax | 5,289 | 5,489 |
Adjustments for non-cash items: | ||
Depreciation, amortisation and impairment | 461 | 419 |
Net gain from investing activities | 187 | (37) |
Change in expected credit losses gross of recoveries and other credit impairment charges | 527 | 308 |
Provisions including pensions | (188) | (198) |
Share-based payment expense | 22 | 21 |
Other non-cash items included in profit before tax | (241) | (240) |
Elimination of exchange differences1 | 34 | 201 |
Changes in operating assets and liabilities | ||
Change in net trading securities and derivatives | 1,209 | (626) |
Change in loans and advances to banks and customers | (14,757) | (5,072) |
Change in reverse repurchase agreements – non-trading | (4,764) | (1,952) |
Change in financial assets mandatorily measured at fair value | (1) | (39) |
Change in other assets | (628) | (1,266) |
Change in deposits by banks and customer accounts | 5,429 | 12,478 |
Change in repurchase agreements – non-trading | 5,856 | (4,231) |
Change in debt securities in issue | 479 | 57 |
Change in other liabilities | (65) | (799) |
Contributions paid to defined benefit plans | — | (1) |
Tax paid | (1,471) | (1,156) |
Net cash from operating activities | (2,622) | 3,356 |
Purchase of financial investments | (25,231) | (33,404) |
Proceeds from the sale and maturity of financial investments | 21,842 | 22,618 |
Proceeds from sale of property, plant and equipment | — | 13 |
Purchase of property, plant and equipment | (73) | (71) |
Purchase of intangible assets | (422) | (346) |
Proceeds from sale of intangible assets | 6 | 1 |
Net cash from investing activities | (3,878) | (11,189) |
Issue of ordinary share capital and other equity instruments | 495 | — |
Subordinated loan capital issued2 | 3,194 | 3,259 |
Subordinated loan capital repaid2 | (2,414) | (2,194) |
Dividends paid to shareholders of the parent company | (3,023) | (3,564) |
Net cash from financing activities | (1,748) | (2,499) |
Net decrease in cash and cash equivalents | (8,248) | (10,332) |
Cash and cash equivalents at 1 Jan | 65,428 | 75,910 |
Exchange differences in respect of cash and cash equivalents | 152 | (150) |
Cash and cash equivalents at 31 Dec3 | 57,332 | 65,428 |
Cash and cash equivalents comprise: | ||
– cash and balances at central banks | 40,368 | 52,275 |
– loans and advances to banks of one month or less | 8,590 | 9,666 |
– reverse repurchase agreements with banks of one month or less | 7,485 | 2,466 |
– treasury bills, other bills and certificates of deposit less than three months | 1,156 | 933 |
– cash collateral, net settlement accounts and items in course of collection from/transmission to other banks | (267) | 88 |
Cash and cash equivalents at 31 Dec3 | 57,332 | 65,428 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
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HSBC UK Bank plc Annual Report and Accounts 2025 |
84 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
85 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
86 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
87 |
Origination CRR | Significance trigger – PD that increases by |
0.1-1.2 | 15 bps |
2.1-3.3 | 30 bps |
Origination CRR | Additional significance criteria – Number of CRR grade notches deterioration required to identify as significant credit deterioration (stage 2) (> or equal to) |
0.1 | 5 notches |
1.1-4.2 | 4 notches |
4.3-5.1 | 3 notches |
5.2-7.1 | 2 notches |
7.2-8.2 | 1 notch |
8.3 | 0 notches |
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Model | Regulatory capital | IFRS 9 |
PD | – Represents long-run average PD throughout a full economic cycle (for mortgage portfolios a hybrid approach, which sits between the extremes of point in time and through the cycle, is used for calculating long-run averages as required by the PRA). – Default backstop of 90+ days past due for all portfolios (includes unlikely to pay ('UTP') criteria in line with internal policy). – May be subject to a sovereign cap. | – Represents current portfolio quality and performance, adjusted for the impact of multiple forward-looking macroeconomic scenarios. – Default backstop of 90+ days past due for all portfolios (includes UTP criteria in line with internal policy). |
EAD | – Cannot be lower than current balance. | – Amortisation captured for term products. – Future drawdown captured for revolving products. |
LGD | – Downturn LGD (consistent with losses we would expect to suffer during a severe but plausible economic downturn). – Regulatory floors may apply to mitigate risk of underestimating downturn LGD due to lack of historical data. – Discounted using appropriate index (minimum 9%). – All collection costs included. | – LGD based on recent portfolio performance data and includes the expected impact of future economic conditions such as change in the value of collateral. – No floors applied, discounted using the original EIR. – Only costs associated with selling collateral and certain third-party costs are included. |
Other | – Discounted back from point of default to balance sheet date. |
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The calculation of the group’s ECL under IFRS 9 requires the group to make a number of judgements, assumptions and estimates. The most significant are set out below: | |
Judgements | Estimates |
– Defining what is considered to be a significant increase in credit risk. – Determining the lifetime and point of initial recognition of overdrafts and credit cards. – Selecting and calibrating the PD, LGD and EAD models, which support the calculations, including making reasonable and supportable judgements about how models react to current and future economic conditions. – Selecting model inputs and economic forecasts, including determining whether sufficient and appropriately weighted economic forecasts are incorporated to calculate unbiased expected credit loss. – Making management adjustments to account for late breaking events, model and data limitations and deficiencies, and expert credit judgements. – Selecting applicable recovery strategies for certain wholesale credit-impaired loans. | – The section ‘Measurement uncertainty and sensitivity analysis of ECL estimates’, marked as audited on pages 29 to 33, sets out the assumptions used in determining ECL, and provides an indication of the sensitivity of the result to the application of different weightings being applied to different economic assumptions. |
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The most significant critical estimates relate to the determination of key assumptions applied in calculating the defined benefit pension obligation. | |
Judgements | Estimates |
– A range of assumptions could be applied, and different assumptions could significantly alter the defined benefit obligation and the amounts recognised in profit or loss or OCI. – The calculation of the defined benefit pension obligation includes assumptions with regard to the discount rate, inflation rate, pension payments and deferred pensions, pay and mortality. Management determines these assumptions in consultation with the plan’s actuaries. – Key assumptions used in calculating the defined benefit pension obligation and the sensitivity of the calculation to different assumptions are described in Note 3. | |
The recognition and measurement of provisions requires the group to make a number of judgements, assumptions and estimates. The most significant are set out below: | |
Judgements | Estimates |
– Determining whether a present obligation exists. Professional advice is taken on the assessment of litigation and similar obligations. – Provisions for legal proceedings and regulatory matters typically require a higher degree of judgement than other types of provisions. When matters are at an early stage, accounting judgements can be difficult because of the high degree of uncertainty associated with determining whether a present obligation exists, and estimating the probability and amount of any outflows that may arise. As matters progress, management and legal advisers evaluate on an ongoing basis whether provisions should be recognised, revising previous estimates as appropriate. At more advanced stages, it is typically easier to make estimates around a better defined set of possible outcomes. | – Provisions for legal proceedings and regulatory matters remain very sensitive to the assumptions used in the estimate. There could be a wider range of possible outcomes for any pending legal proceedings, investigations or inquiries. As a result it is often not practicable to quantify a range of possible outcomes for individual matters. It is also not practicable to meaningfully quantify ranges of potential outcomes in aggregate for these types of provisions because of the diverse nature and circumstances of such matters and the wide range of uncertainties involved. |
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Year ended | ||
31 Dec 2025 | 31 Dec 2024 | |
Net fee income by product | £m | £m |
Account services | 258 | 278 |
Funds under management | 147 | 132 |
Cards | 615 | 590 |
Credit facilities | 181 | 162 |
Imports/exports | 33 | 30 |
Insurance agency commission | 14 | 16 |
Receivables finance | 76 | 81 |
Other | 297 | 316 |
Fee income | 1,621 | 1,605 |
Less: fee expense | (335) | (297) |
Net fee income | 1,286 | 1,308 |
Net fee income by global business | ||
Retail Banking and Wealth | 452 | 497 |
Commercial Banking | 929 | 937 |
Corporate and Institutional Banking | (201) | (215) |
Private Bank | 107 | 89 |
Corporate Centre | (1) | — |
2025 | 2024 | |
£m | £m | |
Wages and salaries | 1,185 | 1,086 |
Social security costs | 143 | 119 |
Post-employment benefits1 | (123) | (77) |
Year ended 31 Dec | 1,205 | 1,128 |
Average number of persons employed by the group during the year | ||
20251 | 20241 | |
Retail Banking and Wealth | 14,077 | 14,449 |
Commercial Banking | 4,998 | 4,894 |
Corporate and Institutional Banking | 112 | 64 |
Private Bank | 634 | 612 |
Corporate Centre | 20 | 15 |
Year ended 31 Dec | 19,841 | 20,034 |
2025 | 2024 | |
£m | £m | |
Restricted share awards | 18 | 17 |
Savings-related and other share award option plans | 12 | 11 |
Year ended 31 Dec | 30 | 28 |
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HSBC Group share awards | |
Award | Policy |
Deferred share awards (including annual incentive awards, LTI awards delivered in shares) | An assessment of performance over the relevant period ending on 31 December is used to determine the amount of the award to be granted. – Deferred awards generally require employees to remain in employment over the vesting period and are generally not subject to performance conditions after the grant date. – Deferred share awards generally vest over a period of three, four, five or seven years. – Vested shares may be subject to a retention requirement post-vesting. – Awards are subject to malus and clawback provisions. – Long-term incentive ('LTI') is subject to performance conditions. |
International Employee Share Purchase Plan (‘ShareMatch’) | The plan was first introduced in Hong Kong in 2013 and now includes employees based in 30 jurisdictions. – Shares are purchased in the market each quarter up to a maximum value of £750, or the equivalent in local currency. – Matching awards are added at a ratio of one free share for every three purchased. – Matching awards vest subject to continued employment and the retention of the purchased shares for a maximum period of two years and nine months. |
Movement on HSBC Group share awards | ||
2025 | 2024 | |
Number | Number | |
(000s) | (000s) | |
Restricted share awards outstanding at 1 Jan | 3,829 | 3,083 |
Additions during the year | 1,530 | 2,464 |
Released in the year | (1,514) | (1,698) |
Forfeited in the year | (51) | (20) |
Restricted share awards outstanding at 31 Dec | 3,794 | 3,829 |
Weighted average fair value of awards granted (£) | 7.76 | 5.11 |
HSBC Group share option plans | |
Plans | Policy |
Savings-related share option plans (‘Sharesave’) | – Eligible employees can save up to £500 per month with the option to use the savings to acquire shares. – These are generally exercisable within six months following either the third or fifth anniversary of the commencement of a three-year or five-year contract, respectively. – The exercise price is set at a 20% (2024: 20%) discount to the market value immediately preceding the date of invitation. |
Movement on HSBC Group share option plans | ||
Savings-related share option plans | ||
Number | WAEP1 | |
(000s) | £ | |
Outstanding at 1 Jan 2025 | 37,921 | 3.82 |
Granted during the year | 6,271 | 7.51 |
Exercised during the year | (12,756) | 2.99 |
Expired during the year | (42) | 3.87 |
Forfeited during the year | (1,292) | 4.80 |
Outstanding at 31 Dec 2025 | 30,102 | 4.89 |
– of which exercisable | 6,128 | 2.85 |
Weighted average remaining contractual life (years) | 1.96 | |
Outstanding at 1 Jan 2024 | 42,678 | 3.44 |
Granted during the year | 5,841 | 5.37 |
Exercised during the year | (8,750) | 2.98 |
Expired during the year | (51) | 3.31 |
Forfeited during the year | (1,797) | 4.10 |
Outstanding at 31 Dec 2024 | 37,921 | 3.82 |
– of which exercisable | 656 | 3.40 |
Weighted average remaining contractual life (years) | 2.10 |
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Income statement charge/(credit) | ||
2025 | 2024 | |
£m | £m | |
Defined benefit pension plans | (261) | (210) |
Defined contribution pension plans | 138 | 133 |
Pension plans | (123) | (77) |
Year ended 31 Dec | (123) | (77) |
Net asset/(liability) under defined benefit pension plans | |||
Fair value of plan assets | Present value of defined benefit obligations | Net defined benefit assets/(liabilities) | |
£m | £m | £m | |
At 1 Jan 2025 | 18,856 | (13,730) | 5,126 |
Service cost | — | (9) | (9) |
– current service cost | — | (8) | (8) |
– past service cost | — | (1) | (1) |
Net interest income/(cost) on the net defined benefit asset/(liability) | 1,020 | (736) | 284 |
Remeasurement effects recognised in other comprehensive income | (356) | 246 | (110) |
– return on plan assets (excluding interest income) | (356) | — | (356) |
– actuarial gains/(losses) financial assumptions | — | 352 | 352 |
– actuarial gains/(losses) demographic assumptions | — | 17 | 17 |
– actuarial gains/(losses) experience adjustments | — | (123) | (123) |
Transfers to/from the scheme | 16 | (15) | 1 |
Benefits paid | (847) | 847 | — |
Other movements1 | (30) | — | (30) |
At 31 Dec 2025 | 18,659 | (13,397) | 5,262 |
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Net asset/(liability) under defined benefit pension plans (continued) | |||
Fair value of plan assets | Present value of defined benefit obligations | Net defined benefit assets/(liabilities) | |
£m | £m | £m | |
At 1 Jan 2024 | 20,851 | (15,514) | 5,337 |
Service cost | — | (27) | (27) |
– current service cost | — | (7) | (7) |
– past service cost | — | (20) | (20) |
Net interest income/(cost) on the net defined benefit asset/(liability) | 949 | (701) | 248 |
Remeasurement effects recognised in other comprehensive income | (2,085) | 1,687 | (398) |
– return on plan assets (excluding interest income) | (2,085) | — | (2,085) |
– actuarial gains/(losses) financial assumptions | — | 1,386 | 1,386 |
– actuarial gains/(losses) demographic assumptions | — | 126 | 126 |
– actuarial gains/(losses) experience adjustments | — | 175 | 175 |
Transfers to/from the scheme | 16 | (22) | (6) |
Benefits paid | (847) | 847 | — |
Other movements1 | (28) | — | (28) |
At 31 Dec 2024 | 18,856 | (13,730) | 5,126 |
Benefits expected to be paid from plan | ||||||
2026 | 2027 | 2028 | 2029 | 2030 | 2031–2035 | |
£m | £m | £m | £m | £m | £m | |
The plan1 | 872 | 897 | 924 | 951 | 979 | 5,350 |
Fair value of plan assets by asset classes | ||||||
At 31 Dec 2025 | At 31 Dec 2024 | |||||
Value | Quoted market price in active market | No quoted market price in active market | Value | Quoted market price in active market | No quoted market price in active market | |
£m | £m | £m | £m | £m | £m | |
The plan | ||||||
Fair value of plan assets | 18,659 | 10,266 | 8,393 | 18,856 | 11,084 | 7,772 |
– equities1 | 43 | — | 43 | 52 | — | 52 |
– bonds fixed income2 | 4,447 | 4,079 | 368 | 4,675 | 4,283 | 392 |
– bonds index linked | 5,863 | 5,863 | — | 6,579 | 6,579 | — |
– derivatives3 | 224 | — | 224 | 235 | — | 235 |
– property | 638 | — | 638 | 664 | — | 664 |
– pooled investment vehicles | 7,120 | — | 7,120 | 6,429 | — | 6,429 |
– other | 324 | 324 | — | 222 | 222 | — |
Key actuarial assumptions for the plan | |||||
Discount rate | Inflation rate (RPI) | Inflation rate (CPI) | Rate of increase for pensions | Rate of pay increase | |
% | % | % | % | % | |
UK | |||||
At 31 Dec 2025 | 5.51 | 3.02 | 2.34 | 2.96 | 3.09 |
At 31 Dec 2024 | 5.54 | 3.33 | 2.88 | 3.22 | 3.63 |
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Mortality tables and average life expectancy at age 60 for the plan | ||||||
Mortality table | Life expectancy at age 60 for a male member currently: | Life expectancy at age 60 for a female member currently: | ||||
Aged 60 | Aged 40 | Aged 60 | Aged 40 | |||
UK | ||||||
At 31 Dec 2025 | SAPS S31 | 26.4 | 28.0 | 28.4 | 30.0 | |
At 31 Dec 2024 | SAPS S32 | 26.1 | 27.7 | 28.3 | 29.9 | |
The effect of changes in key assumptions on the plan | ||||
Impact on HSBC Bank (UK) Pension Scheme Obligation | ||||
Financial impact of increase | Financial impact of decrease | |||
2025 | 2024 | 2025 | 2024 | |
£m | £m | £m | £m | |
Discount rate – increase/decrease of 0.25% | (356) | (377) | 372 | 395 |
Inflation rate (RPI/CPI) – increase/decrease of 0.25% | 304 | 310 | (301) | (312) |
Pension payments and deferred pensions – increase/decrease of 0.25% | 376 | 388 | (355) | (381) |
Pay – increase/decrease of 0.25% | 5 | 5 | (5) | (5) |
Change in mortality – increase/decrease of 1 year | 362 | 385 | (375) | (370) |
2025 | 2024 | |
£000 | £000 | |
Fees paid to non-executive Directors | 2,086 | 1,871 |
Salaries and other emoluments1 | 2,694 | 2,599 |
Annual incentives2 | 1,485 | 1,384 |
Long-term incentives3 | 1,965 | 1,353 |
Year ended 31 Dec | 8,230 | 7,207 |
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2025 | 2024 | |
£000 | £000 | |
Salaries and other emoluments | 1,792 | 1,798 |
Annual incentives1 | 1,165 | 1,064 |
Long-term incentives2 | 1,722 | 1,271 |
Year ended 31 Dec | 4,679 | 4,133 |
2025 | 2024 | |
£m | £m | |
Audit fees payable to PwC | 6.5 | 6.1 |
Assurance fees payable to PwC | 2.2 | 2.1 |
Year ended 31 Dec | 8.7 | 8.2 |
Fees payable by the group to PwC | ||
2025 | 2024 | |
£m | £m | |
Audit fees for HSBC UK Bank plc‘s statutory audit1 | 4.7 | 4.2 |
Fees for other services provided to the group | 4.0 | 4.0 |
– audit of the group‘s subsidiaries | 1.8 | 1.9 |
– audit-related assurance services2 | 2.0 | 2.1 |
– other assurance services3 | 0.2 | — |
Year ended 31 Dec | 8.7 | 8.2 |
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Tax expense | ||
2025 | 2024 | |
£m | £m | |
Current tax | 1,421 | 1,399 |
– for this year | 1,417 | 1,404 |
– adjustments in respect of prior years | 4 | (5) |
Deferred tax | 96 | 109 |
– origination and reversal of temporary differences | 100 | 112 |
– adjustments in respect of prior years | (4) | (3) |
Year ended 31 Dec1 | 1,517 | 1,508 |
2025 | 2024 | |||
£m | % | £m | % | |
Profit before tax | 5,619 | 5,647 | ||
Tax expense | ||||
Taxation at UK corporation tax rate of 25.0% (2024: 25.0%) | 1,405 | 25.0 | 1,412 | 25.0 |
Items increasing the tax charge in 2025: | ||||
– UK banking surcharge at 3.0% (2024: 3.0%) | 162 | 2.9 | 163 | 2.9 |
– UK bank levy | 13 | 0.2 | 12 | 0.2 |
– other permanent disallowables | 7 | 0.2 | 5 | 0.1 |
Items decreasing the tax charge in 2025: | ||||
– deductions for AT1 coupon payments | (66) | (1.2) | (65) | (1.2) |
– non-deductible UK customer redress | (4) | (0.1) | (5) | (0.1) |
– adjustments in respect of prior period liabilities | — | — | (8) | (0.1) |
– non-deductible regulatory matters and legal proceedings | — | — | (6) | (0.1) |
Year ended 31 Dec | 1,517 | 27.0 | 1,508 | 26.7 |
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Movement of deferred tax assets and liabilities | |||||||
Loan impairment provisions | Cash flow hedges | FVOCI reserves | Defined benefit pension | Fixed and intangible assets | Other | Total | |
£m | £m | £m | £m | £m | £m | £m | |
The group | |||||||
At 1 Jan 2025 | 56 | 257 | 81 | (1,435) | 47 | 45 | (949) |
Income statement | (18) | — | (1) | (69) | (12) | 4 | (96) |
Other comprehensive income | — | (285) | (28) | 31 | — | 9 | (273) |
At 31 Dec 2025 | 38 | (28) | 52 | (1,473) | 35 | 58 | (1,318) |
Assets | 38 | — | 52 | — | 35 | 58 | 183 |
Liabilities | — | (28) | — | (1,473) | — | — | (1,501) |
At 1 Jan 2024 | 74 | 115 | 76 | (1,494) | 58 | 60 | (1,111) |
Income statement | (18) | — | (4) | (54) | (11) | (22) | (109) |
Other comprehensive income | — | 142 | 9 | 113 | — | 7 | 271 |
At 31 Dec 2024 | 56 | 257 | 81 | (1,435) | 47 | 45 | (949) |
Assets | 56 | 257 | 81 | — | 47 | 45 | 486 |
Liabilities | — | — | — | (1,435) | — | — | (1,435) |
The bank | |||||||
At 1 Jan 2025 | 51 | 257 | 75 | (1,435) | 54 | 27 | (971) |
Income statement | (17) | — | — | (69) | (3) | (4) | (93) |
Other comprehensive income | — | (285) | (28) | 31 | — | 8 | (274) |
At 31 Dec 2025 | 34 | (28) | 47 | (1,473) | 51 | 31 | (1,338) |
Assets | 34 | — | 47 | — | 51 | 31 | 163 |
Liabilities | — | (28) | — | (1,473) | — | — | (1,501) |
At 1 Jan 2024 | 68 | 115 | 65 | (1,494) | 67 | 28 | (1,151) |
Income statement | (17) | — | — | (54) | (13) | (7) | (91) |
Other comprehensive income | — | 142 | 10 | 113 | — | 6 | 271 |
At 31 Dec 2024 | 51 | 257 | 75 | (1,435) | 54 | 27 | (971) |
Assets | 51 | 257 | 75 | — | 54 | 27 | 464 |
Liabilities | — | — | — | (1,435) | — | — | (1,435) |
Dividends to the shareholder of the parent company | ||||
2025 | 2024 | |||
£ per share | £m | £ per share | £m | |
Dividends paid on ordinary shares | ||||
Interim dividend in respect of the previous year | 11,900 | 595 | 28,239 | 1,412 |
Interim dividend in respect of the current year | 44,378 | 2,219 | 38,478 | 1,924 |
Total | 56,278 | 2,814 | 66,717 | 3,336 |
Total coupons on capital securities classified as equity | |||
2025 | 2024 | ||
First call date | £m | £m | |
Undated Subordinated Additional Tier 1 instruments | |||
– £1,096m | Dec 2019 | 103 | 113 |
– £1,100m | Dec 2024 | 106 | 115 |
Total | 209 | 228 | |
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Financial instruments carried at fair value and bases of valuation | ||||||||
2025 | 2024 | |||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
The group | £m | £m | £m | £m | £m | £m | £m | £m |
Recurring fair value measurements at 31 Dec | ||||||||
Assets | ||||||||
Financial assets mandatorily measured at fair value through profit or loss | 175 | — | — | 175 | 135 | — | 39 | 174 |
Derivatives | 6 | 157 | 4 | 167 | 1 | 294 | 3 | 298 |
Financial investments | 21,112 | 1,414 | 1 | 22,527 | 18,800 | 2,662 | 17 | 21,479 |
Liabilities | ||||||||
Derivatives | 8 | 154 | — | 162 | — | 107 | — | 107 |
Financial instruments carried at fair value and bases of valuation | ||||||||
2025 | 2024 | |||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
The bank | £m | £m | £m | £m | £m | £m | £m | £m |
Recurring fair value measurements at 31 Dec | ||||||||
Assets | ||||||||
Financial assets mandatorily measured at fair value through profit or loss | 175 | — | — | 175 | 135 | — | 39 | 174 |
Derivatives | 6 | 157 | — | 163 | 1 | 294 | — | 295 |
Financial investments | 21,112 | 1,414 | 1 | 22,527 | 18,800 | 2,662 | 17 | 21,479 |
Liabilities | ||||||||
Derivatives | 8 | 154 | — | 162 | — | 107 | — | 107 |
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Fair values of financial instruments not carried at fair value and bases of valuation | |||||
Fair value | |||||
Carrying amount | Quoted market price Level 1 | Observable inputs Level 2 | Significant unobservable inputs Level 3 | Total | |
£m | £m | £m | £m | £m | |
The group | |||||
At 31 Dec 2025 | |||||
Assets | |||||
Loans and advances to banks | 6,636 | — | 6,636 | — | 6,636 |
Loans and advances to customers | 231,223 | — | — | 231,686 | 231,686 |
Reverse repurchase agreements – non-trading | 21,560 | — | 21,560 | — | 21,560 |
Financial investments – at amortised cost | 19,111 | 18,523 | 278 | — | 18,801 |
Liabilities | |||||
Deposits by banks | 7,709 | — | 7,709 | — | 7,709 |
Customer accounts | 288,756 | — | 288,756 | — | 288,756 |
Repurchase agreements – non-trading | 6,276 | — | 6,276 | — | 6,276 |
Debt securities in issue | 3,019 | — | 2,107 | 924 | 3,031 |
Subordinated liabilities | 16,423 | — | 16,752 | — | 16,752 |
At 31 Dec 2024 | |||||
Assets | |||||
Loans and advances to banks | 7,263 | — | 7,263 | — | 7,263 |
Loans and advances to customers | 217,604 | — | — | 216,767 | 216,767 |
Reverse repurchase agreements – non-trading | 11,776 | — | 11,776 | — | 11,776 |
Financial investments – at amortised cost | 16,322 | 15,593 | 170 | — | 15,763 |
Liabilities | |||||
Deposits by banks | 11,144 | — | 11,144 | — | 11,144 |
Customer accounts | 280,366 | — | 280,366 | — | 280,366 |
Repurchase agreements – non-trading | 420 | — | 420 | — | 420 |
Debt securities in issue | 2,044 | — | 1,626 | 418 | 2,044 |
Subordinated liabilities | 15,686 | — | 15,898 | — | 15,898 |
Fair value | |||||
Carrying amount | Quoted market price Level 1 | Observable inputs Level 2 | Significant unobservable inputs Level 3 | Total | |
£m | £m | £m | £m | £m | |
The bank | |||||
At 31 Dec 2025 | |||||
Assets | |||||
Loans and advances to banks | 13,325 | — | 13,336 | — | 13,336 |
Loans and advances to customers | 219,070 | — | — | 219,525 | 219,525 |
Reverse repurchase agreements – non-trading | 21,560 | — | 21,560 | — | 21,560 |
Financial investments held at amortised cost | 18,922 | 18,523 | 117 | — | 18,640 |
Liabilities | |||||
Deposits by banks | 12,096 | — | 12,096 | — | 12,096 |
Customer accounts | 282,274 | — | 282,273 | — | 282,273 |
Repurchase agreements – non-trading | 6,276 | — | 6,276 | — | 6,276 |
Debt securities in issue | 2,100 | — | 2,107 | — | 2,107 |
Subordinated liabilities | 16,423 | — | 16,752 | — | 16,752 |
At 31 Dec 2024 | |||||
Assets | |||||
Loans and advances to banks | 13,070 | — | 13,079 | — | 13,079 |
Loans and advances to customers | 206,187 | — | — | 205,376 | 205,376 |
Reverse repurchase agreements – non-trading | 11,776 | — | 11,776 | — | 11,776 |
Financial investments held at amortised cost | 16,118 | 15,593 | — | — | 15,593 |
Liabilities | |||||
Deposits by banks | 14,780 | — | 14,780 | — | 14,780 |
Customer accounts | 274,160 | — | 274,160 | — | 274,160 |
Repurchase agreements – non-trading | 420 | — | 420 | — | 420 |
Debt securities in issue | 1,621 | — | 1,626 | — | 1,626 |
Subordinated liabilities | 15,686 | — | 15,898 | — | 15,898 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
101 |
Notional contract amounts and fair values of derivatives by product contract type held | ||||||||
Notional contract amount | Fair value – Assets | Fair value – Liabilities | ||||||
Trading | Hedging | Trading | Hedging | Total | Trading | Hedging | Total | |
The group and bank | £m | £m | £m | £m | £m | £m | £m | £m |
Foreign exchange | 13,826 | 2,323 | 43 | 45 | 88 | 63 | 29 | 92 |
Interest rate | 105,015 | 108,637 | 1,209 | 1,117 | 2,326 | 1,202 | 1,119 | 2,321 |
Equities | 15 | — | 4 | — | 4 | — | — | — |
Gross total fair values | 118,856 | 110,960 | 1,256 | 1,162 | 2,418 | 1,265 | 1,148 | 2,413 |
Offset (Note 22) | (2,251) | (2,251) | ||||||
At 31 Dec 2025 | 118,856 | 110,960 | 1,256 | 1,162 | 167 | 1,265 | 1,148 | 162 |
Foreign exchange | 16,199 | 1,960 | 201 | 27 | 228 | 63 | 28 | 91 |
Interest rate | 55,666 | 100,083 | 1,305 | 1,288 | 2,593 | 1,274 | 1,268 | 2,542 |
Equities | 11 | — | 3 | — | 3 | — | — | — |
Gross total fair values | 71,876 | 102,043 | 1,509 | 1,315 | 2,824 | 1,337 | 1,296 | 2,633 |
Offset (Note 22) | (2,526) | (2,526) | ||||||
At 31 Dec 2024 | 71,876 | 102,043 | 1,509 | 1,315 | 298 | 1,337 | 1,296 | 107 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
102 |
Hedging instrument by hedged risk | |||||
Hedging Instrument | |||||
Carrying amount | |||||
Notional amount1 | Assets | Liabilities | Balance sheet Presentation | Change in fair value2 | |
Hedged risk | £m | £m | £m | £m | |
Interest rate3 | 53,330 | 949 | 925 | Derivatives | (258) |
At 31 Dec 2025 | 53,330 | 949 | 925 | (258) | |
Interest rate3 | 37,500 | 1,171 | 922 | Derivatives | 212 |
At 31 Dec 2024 | 37,500 | 1,171 | 922 | 212 |
Hedged item by hedged risk | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount2 | Change in fair value1 | Recognised in profit and loss | Profit and loss presentation | ||||
Assets | Liabilities | Assets | Liabilities | Balance sheet presentation | ||||
Hedged risk | £m | £m | £m | £m | £m | £m | ||
Interest rate4 | 17,355 | 36 | Financial investments measured at fair value through other comprehensive income | 296 | (9) | Net income from financial instruments held for trading or managed on a fair value basis | ||
19,184 | 50 | Loans and advances to customers | 116 | |||||
2,121 | 23 | Financial Investments measured at amortised cost | 16 | |||||
11,701 | (112) | Subordinated Liabilities3 | (187) | |||||
656 | (8) | Debt securities in issue | 8 | |||||
At 31 Dec 2025 | 38,660 | 12,357 | 109 | (120) | 249 | (9) | ||
Interest rate4 | 17,224 | (256) | Financial investments measured at fair value through other comprehensive income | (208) | (7) | Net income from financial instruments held for trading or managed on a fair value basis | ||
10,670 | (75) | Loans and advances to customers | (24) | |||||
392 | 9 | Financial Investments measured at amortised cost | (11) | |||||
8,433 | (310) | Subordinated Liabilities3 | 24 | |||||
— | — | Debt securities in issue | — | |||||
At 31 Dec 2024 | 28,286 | 8,433 | (322) | (310) | (219) | (7) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
103 |
Hedging instrument by hedged risk | ||||||||
Hedging Instrument | Hedged Item | Ineffectiveness | ||||||
Carrying amount | Change in fair value2 | Change in fair value3 | Recognised in profit and loss | Profit and loss presentation | ||||
Notional amount1 | Assets | Liabilities | Balance sheet presentation | |||||
Hedged risk | £m | £m | £m | £m | £m | £m | ||
Foreign currency | 2,323 | 45 | 29 | Derivatives | (2) | (2) | — | Net income from financial instruments held for trading or managed on a fair value basis |
Interest rate | 55,307 | 168 | 194 | Derivatives | 541 | 545 | (4) | |
At 31 Dec 2025 | 57,630 | 213 | 223 | 539 | 543 | (4) | ||
Foreign currency | 1,960 | 27 | 28 | Derivatives | (16) | (16) | — | Net income from financial instruments held for trading or managed on a fair value basis |
Interest rate | 62,583 | 117 | 346 | Derivatives | (1,480) | (1,480) | — | |
At 31 Dec 2024 | 64,543 | 144 | 374 | (1,496) | (1,496) | — |
Reconciliation of equity and analysis of other comprehensive income by risk type | ||
Interest rate | Foreign Currency | |
£m | £m | |
Cash flow hedging reserve at 1 Jan 2025 | (656) | (2) |
Fair value gains/(losses) | 545 | (2) |
Fair value (gains)/losses reclassified from the cash flow hedge reserve to the income statement in respect of: | ||
– hedged items that have affected profit or loss | 475 | 1 |
Income taxes | (285) | — |
Cash flow hedging reserve at 31 Dec 2025 | 79 | (3) |
Cash flow hedging reserve at 1 Jan 2024 | (294) | 1 |
Fair value gains/(losses) | (1,480) | (16) |
Fair value (gains)/losses reclassified from the cash flow hedge reserve to the income statement in respect of: | ||
– hedged items that have affected profit or loss | 976 | 13 |
Income taxes | 142 | — |
Cash flow hedging reserve at 31 Dec 2024 | (656) | (2) |
HSBC UK Bank plc Annual Report and Accounts 2025 |
104 |
Carrying amount of financial investments | ||||
The group | The bank | |||
2025 | 2024 | 2025 | 2024 | |
£m | £m | £m | £m | |
Financial investments measured at fair value through other comprehensive income | 22,527 | 21,479 | 22,527 | 21,479 |
– treasury and other eligible bills | 2,042 | 2,128 | 2,042 | 2,128 |
– debt securities | 20,484 | 19,350 | 20,484 | 19,350 |
– equity securities | 1 | 1 | 1 | 1 |
Debt instruments measured at amortised cost | 19,111 | 16,322 | 18,922 | 16,118 |
– treasury and other eligible bills | 2,181 | 1,429 | 2,181 | 1,259 |
– debt securities | 16,930 | 14,893 | 16,741 | 14,859 |
At 31 Dec | 41,638 | 37,801 | 41,449 | 37,597 |
Financial assets pledged as collateral | ||||
The group | The bank | |||
2025 | 2024 | 2025 | 2024 | |
£m | £m | £m | £m | |
Treasury bills and other eligible securities | — | 170 | — | — |
Debt securities | 13,012 | 5,569 | 12,851 | 5,569 |
Loans and advances to banks | 5,870 | 6,020 | 8,386 | 8,256 |
Loans and advances to customers | 11,100 | 15,201 | 11,100 | 15,201 |
Other | 1,090 | 941 | 1,090 | 941 |
Assets pledged at 31 Dec | 31,072 | 27,901 | 33,427 | 29,967 |
Financial assets pledged as collateral that the counterparty has the right to sell or repledge | ||
The group and bank | ||
2025 | 2024 | |
£m | £m | |
Financial investments | 11,085 | 4,475 |
At 31 Dec | 11,085 | 4,475 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
105 |
Transferred financial assets not qualifying for full derecognition and associated financial liabilities | ||||
2025 | 2024 | |||
Carrying amount of: | Carrying amount of: | |||
Transferred assets | Associated liabilities | Transferred assets | Associated liabilities | |
The group | £m | £m | £m | £m |
Repurchase agreements | 10,680 | 4,711 | 2,935 | 375 |
Securities lending agreements | 405 | — | 1,540 | — |
The bank | ||||
Repurchase agreements | 10,680 | 4,711 | 2,935 | 375 |
Securities lending agreements | 405 | — | 1,540 | — |
Other sales | 4,199 | 1,646 | 4,889 | 999 |
Main subsidiaries of HSBC UK Bank plc | |||
Country of incorporation or registration | HSBC UK Bank plc’s interest in equity capital | Share class | |
% | |||
HSBC Equipment Finance (UK) Limited | England and Wales | 100.00 | Ordinary £1 |
HSBC Invoice Finance (UK) Limited | England and Wales | 100.00 | Ordinary £1 |
Marks and Spencer Financial Services plc | England and Wales | 100.00 | Ordinary £1 |
HSBC Innovation Bank Limited | England and Wales | 100.00 | Ordinary £1 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
106 |
Securitisations | Other | Total | |
£m | £m | £m | |
At 31 Dec 2025 | 1,354 | 1,671 | 3,025 |
At 31 Dec 2024 | 627 | 1,007 | 1,634 |
The group | The bank | |||
2025 | 2024 | 2025 | 2024 | |
£m | £m | £m | £m | |
Goodwill | 3,281 | 3,281 | 223 | 223 |
Other intangible assets1 | 1,132 | 1,092 | 1,059 | 998 |
At 31 Dec | 4,413 | 4,373 | 1,282 | 1,221 |
Key assumptions in VIU calculation | ||||||
Goodwill at 1 Oct 2025 | Discount rate | Growth rate beyond initial cash flow projections | Goodwill at 1 Oct 2024 | Discount rate | Growth rate beyond initial cash flow projections | |
Cash-generating unit | £m | % | % | £m | % | % |
RBW | 1,936 | 10.0 | 2.1 | 1,936 | 10.6 | 2.0 |
CMB | 1,239 | 8.9 | 2.1 | 1,239 | 9.0 | 2.0 |
PB | 106 | 9.4 | 2.1 | 106 | 9.4 | 2.0 |
Total | 3,281 | 3,281 | ||||
HSBC UK Bank plc Annual Report and Accounts 2025 |
107 |
The group | The bank | |||
2025 | 2024 | 2025 | 2024 | |
£m | £m | £m | £m | |
Prepayments and accrued income | 1,639 | 1,470 | 1,687 | 1,502 |
Settlement accounts and items in course of collection from other banks | 221 | 390 | 63 | 220 |
Cash collateral and margin receivables | 915 | 806 | 915 | 806 |
Endorsements and acceptances | 45 | 38 | 45 | 38 |
Employee benefit assets (Note 3) | 5,262 | 5,126 | 5,262 | 5,126 |
Right-of-use assets | 152 | 153 | 144 | 143 |
Other accounts | 1,113 | 945 | 1,012 | 1,017 |
Owned property, plant and equipment | 389 | 375 | 388 | 374 |
At 31 Dec | 9,736 | 9,303 | 9,516 | 9,226 |
The group | The bank | |||
2025 | 2024 | 2025 | 2024 | |
£m | £m | £m | £m | |
Bonds and medium-term notes1 | 1,070 | 573 | 150 | 150 |
Covered bonds | 1,645 | 999 | 1,646 | 999 |
Other debt securities in issue2 | 304 | 472 | 304 | 472 |
At 31 Dec | 3,019 | 2,044 | 2,100 | 1,621 |
The group | The bank | |||
2025 | 2024 | 2025 | 2024 | |
£m | £m | £m | £m | |
Accruals and deferred income | 1,357 | 1,295 | 1,308 | 1,249 |
Settlement accounts and items in course of transmission to other banks | 383 | 239 | 381 | 238 |
Cash collateral and margin payable | 28 | 210 | 28 | 210 |
Endorsements and acceptances | 45 | 41 | 45 | 41 |
Lease liabilities | 160 | 163 | 151 | 152 |
Other liabilities | 1,551 | 1,528 | 1,413 | 1,354 |
At 31 Dec | 3,524 | 3,476 | 3,326 | 3,244 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
108 |
Restructuring costs | Legal proceedings and regulatory matters | Customer remediation | Other provisions | Total | |
The group | £m | £m | £m | £m | £m |
Provisions (excluding contractual commitments) | |||||
At 1 Jan 2025 | 20 | 2 | 53 | 69 | 144 |
Additions | 73 | 2 | 22 | 54 | 151 |
Amounts utilised | (36) | (2) | (15) | (15) | (68) |
Unused amounts reversed | (24) | (1) | (19) | (28) | (72) |
Exchange and other movements | (4) | — | — | 5 | 1 |
At 31 Dec 2025 | 29 | 1 | 41 | 85 | 156 |
Contractual commitments1 | |||||
At 1 Jan 2025 | 121 | ||||
Net change in expected credit loss provision and other movements | (13) | ||||
At 31 Dec 2025 | 108 | ||||
Total provisions | |||||
At 31 Dec 2024 | 265 | ||||
At 31 Dec 2025 | 264 |
Provisions (excluding contractual commitments) | |||||
At 1 Jan 2024 | 30 | 34 | 89 | 74 | 227 |
Additions | 15 | 9 | 19 | 23 | 66 |
Amounts utilised | (17) | (19) | (31) | (12) | (79) |
Unused amounts reversed | (9) | (23) | (24) | (16) | (72) |
Exchange and other movements | 1 | 1 | — | — | 2 |
At 31 Dec 2024 | 20 | 2 | 53 | 69 | 144 |
Contractual commitments1 | |||||
At 1 Jan 2024 | 123 | ||||
Net change in expected credit loss provision and other movements | (2) | ||||
At 31 Dec 2024 | 121 | ||||
Total provisions | |||||
At 31 Dec 2023 | 350 | ||||
At 31 Dec 2024 | 265 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
109 |
Restructuring costs | Legal proceedings and regulatory matters | Customer remediation | Other provisions | Total | |
The bank | £m | £m | £m | £m | £m |
Provisions (excluding contractual commitments) | |||||
At 1 Jan 2025 | 19 | 2 | 42 | 68 | 131 |
Additions | 64 | 2 | 21 | 39 | 126 |
Amounts utilised | (33) | (2) | (14) | (14) | (63) |
Unused amounts reversed | (22) | (1) | (18) | (13) | (54) |
Exchange and other movements | (4) | — | — | 5 | 1 |
At 31 Dec 2025 | 24 | 1 | 31 | 85 | 141 |
Contractual commitments1 | |||||
At 1 Jan 2025 | 115 | ||||
Net change in expected credit loss provision and other movements | (13) | ||||
At 31 Dec 2025 | 102 | ||||
Total provisions | |||||
At 31 Dec 2024 | 246 | ||||
At 31 Dec 2025 | 243 |
Provisions (excluding contractual commitments) | |||||
At 1 Jan 2024 | 30 | 34 | 74 | 74 | 212 |
Additions | 14 | 9 | 19 | 22 | 64 |
Amounts utilised | (17) | (19) | (29) | (12) | (77) |
Unused amounts reversed | (9) | (23) | (22) | (16) | (70) |
Exchange and other movements | 1 | 1 | — | — | 2 |
At 31 Dec 2024 | 19 | 2 | 42 | 68 | 131 |
Contractual commitments1 | |||||
At 1 Jan 2024 | 115 | ||||
Net change in expected credit loss provision and other movements | — | ||||
At 31 Dec 2024 | 115 | ||||
Total provisions | |||||
At 31 Dec 2023 | 327 | ||||
At 31 Dec 2024 | 246 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
110 |
Subordinated liabilities | ||||
The group | The bank | |||
2025 | 2024 | 2025 | 2024 | |
£m | £m | £m | £m | |
At amortised cost1 | 16,423 | 15,686 | 16,423 | 15,686 |
At 31 Dec | 16,423 | 15,686 | 16,423 | 15,686 |
Subordinated liabilities of the group | |||||
Carrying amount | |||||
2025 | 2024 | ||||
First call date | Maturity date | £m | £m | ||
Capital instruments | |||||
Tier 2 instruments | |||||
£1,000m | HSBC UK Bank plc Subordinated Floating Loan due 20301 | Jul 2025 | Jul 2030 | — | 1,000 |
£79m | HSBC UK Bank plc 2.1250% Subordinated Loan due 2031 | Mar 2026 | Mar 2031 | 79 | 79 |
$840m | HSBC UK Bank plc Subordinated Floating Loan due 20332 | Jul 2028 | Jul 2033 | 625 | 668 |
£550m | HSBC UK Bank plc Subordinated Floating Loan due 20333 | Jul 2028 | Jul 2033 | 549 | 548 |
£650m | HSBC UK Bank plc Subordinated Floating Loan due 20334 | Sept 2028 | Sept 2033 | 650 | 650 |
£250m | HSBC UK Bank plc 6.8960% Subordinated Loan due 2033 | Dec 2028 | Dec 2033 | 252 | 248 |
£350m | HSBC UK Bank plc 5.8610% Subordinated Loan due 2035 | Jun 2030 | Jun 2035 | 350 | — |
€1,250m | HSBC UK Bank plc 4.1910% Subordinated Loan due 2036 | May 2031 | May 2036 | 1,079 | — |
Other instruments | |||||
Subordinated loan instruments not eligible for inclusion in regulatory capital | |||||
€500m | HSBC UK Bank plc MREL eligible Subordinated Floating Loan due 20261 | Sept 2025 | Sept 2026 | — | 415 |
£1,000m | HSBC UK Bank plc 1.1250% MREL eligible Subordinated Loan due 20261 | Nov 2025 | Nov 2026 | — | 1,000 |
£1,000m | HSBC UK Bank plc 1.7500% MREL eligible Subordinated Loan due 2027 | Jul 2026 | Jul 2027 | 1,000 | 999 |
$1,850m | HSBC UK Bank plc 5.5970% MREL eligible Subordinated Loan due 2028 | May 2027 | May 2028 | 1,399 | 1,486 |
£1,000m | HSBC UK Bank plc 3.0000% MREL eligible Subordinated Loan due 2028 | Jul 2027 | Jul 2028 | 966 | 929 |
£1,000m | HSBC UK Bank plc MREL eligible Subordinated Floating Loan due 20295 | Apr 2028 | Apr 2029 | 999 | 998 |
€1,250m | HSBC UK Bank plc 3.7550% MREL eligible Subordinated Loan due 2029 | May 2028 | May 2029 | 1,108 | 1,056 |
£1,000m | HSBC UK Bank plc 1.7500% MREL eligible Subordinated Loan due 2029 | Aug 2028 | Aug 2029 | 1,000 | 1,000 |
$3,000m | HSBC UK Bank plc 3.9730% MREL eligible Subordinated Loan due 2030 | May 2029 | May 2030 | 2,145 | 2,201 |
£750m | HSBC UK Bank plc 3.0000% MREL eligible Subordinated Loan due 2030 | May 2029 | May 2030 | 690 | 660 |
£500m | HSBC UK Bank plc 5.0970% MREL eligible Subordinated Loan due 2030 | Sept 2029 | Sept 2030 | 502 | — |
£500m | HSBC UK Bank plc 4.7180% MREL eligible Subordinated Loan due 2030 | Nov 2029 | Nov 2030 | 498 | — |
£1,000m | HSBC UK Bank plc 6.8000% MREL eligible Subordinated Loan due 2031 | Sept 2030 | Sept 2031 | 1,036 | 1,023 |
£750m | HSBC UK Bank plc 5.2900% MREL eligible Subordinated Loan due 2032 | Sept 2031 | Sept 2032 | 740 | 726 |
£750m | HSBC UK Bank plc 5.8130% MREL eligible Subordinated Loan due 2033 | May 2032 | May 2033 | 756 | — |
At 31 Dec | 16,423 | 15,686 | |||
HSBC UK Bank plc Annual Report and Accounts 2025 |
111 |
Maturity analysis of assets, liabilities and off-balance sheet commitments | |||||||||
Due not more than 1 month | Due over 1 month but not more than 3 months | Due over 3 months but not more than 6 months | Due over 6 months but not more than 9 months | Due over 9 months but not more than 1 year | Due over 1 year but not more than 2 years | Due over 2 years but not more than 5 years | Due over 5 years | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | |
The group | |||||||||
Financial assets | |||||||||
Cash and balances at central banks | 40,369 | — | — | — | — | — | — | — | 40,369 |
Financial assets mandatorily measured at fair value | 175 | — | — | — | — | — | — | — | 175 |
Derivatives | 45 | 10 | 9 | 3 | 4 | 7 | 41 | 48 | 167 |
Loans and advances to banks | 6,398 | 238 | — | — | — | — | — | — | 6,636 |
Loans and advances to customers | 20,677 | 7,132 | 6,523 | 5,813 | 5,674 | 18,948 | 47,694 | 118,762 | 231,223 |
– personal | 6,529 | 2,704 | 2,230 | 2,121 | 2,057 | 7,551 | 20,108 | 110,794 | 154,094 |
– corporate and commercial | 13,934 | 3,505 | 2,955 | 2,494 | 2,476 | 9,677 | 25,976 | 7,587 | 68,604 |
– financial | 214 | 923 | 1,338 | 1,198 | 1,141 | 1,720 | 1,610 | 381 | 8,525 |
Reverse repurchase agreements – non-trading | 11,902 | 2,145 | 3,137 | 2,648 | 1,728 | — | — | — | 21,560 |
Financial investments | 2,697 | 2,850 | 1,764 | 898 | 1,084 | 5,216 | 13,340 | 13,789 | 41,638 |
Accrued income and other financial assets | 2,544 | 324 | 140 | 57 | 15 | 32 | 18 | — | 3,130 |
Total financial assets at 31 Dec 2025 | 84,807 | 12,699 | 11,573 | 9,419 | 8,505 | 24,203 | 61,093 | 132,599 | 344,898 |
Non-financial assets | — | — | — | — | — | — | — | 11,032 | 11,032 |
Total assets at 31 Dec 2025 | 84,807 | 12,699 | 11,573 | 9,419 | 8,505 | 24,203 | 61,093 | 143,631 | 355,930 |
Off-balance sheet commitments received | |||||||||
Loan and other credit-related commitments | 306 | — | — | — | — | — | — | — | 306 |
Financial liabilities | |||||||||
Deposits by banks | 941 | 9 | — | — | — | 4,009 | — | 2,750 | 7,709 |
Customer accounts1 | 267,874 | 5,635 | 5,373 | 4,200 | 4,168 | 1,486 | 20 | — | 288,756 |
– personal | 162,113 | 2,596 | 4,256 | 3,713 | 4,009 | 1,474 | 12 | — | 178,173 |
– corporate and commercial | 90,736 | 2,866 | 1,070 | 466 | 154 | 12 | 8 | — | 95,312 |
– financial | 15,025 | 173 | 47 | 21 | 5 | — | — | — | 15,271 |
Repurchase agreements – non-trading | 200 | 76 | 6,000 | — | — | — | — | — | 6,276 |
Derivatives | 68 | 3 | 10 | 2 | 9 | 8 | 25 | 37 | 162 |
Debt securities in issue | 179 | 125 | — | 150 | 210 | 500 | 1,358 | 497 | 3,019 |
Accruals and other financial liabilities | 2,661 | 323 | 150 | 68 | 20 | 34 | 48 | 35 | 3,339 |
Subordinated liabilities | — | 79 | — | 1,000 | — | 2,365 | 10,404 | 2,575 | 16,423 |
Total financial liabilities at 31 Dec 2025 | 271,923 | 6,250 | 11,533 | 5,420 | 4,407 | 8,402 | 11,855 | 5,894 | 325,684 |
Non-financial liabilities | — | — | — | — | — | — | — | 1,985 | 1,985 |
Total liabilities at 31 Dec 2025 | 271,923 | 6,250 | 11,533 | 5,420 | 4,407 | 8,402 | 11,855 | 7,879 | 327,669 |
Off-balance sheet commitments given | |||||||||
Loan and other credit-related commitments | 81,984 | 33 | 5 | 7 | 28 | 7 | 142 | — | 82,206 |
– personal | 41,797 | — | — | — | — | — | — | — | 41,797 |
– corporate and commercial | 35,778 | 33 | 5 | 7 | 28 | 7 | 142 | — | 36,000 |
– financial | 4,409 | — | — | — | — | — | — | — | 4,409 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
112 |
Maturity analysis of assets, liabilities and off-balance sheet commitments (continued) | |||||||||
Due not more than 1 month | Due over 1 month but not more than 3 months | Due over 3 months but not more than 6 months | Due over 6 months but not more than 9 months | Due over 9 months but not more than 1 year | Due over 1 year but not more than 2 years | Due over 2 years but not more than 5 years | Due over 5 years | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | |
The group | |||||||||
Financial assets | |||||||||
Cash and balances at central banks | 52,276 | — | — | — | — | — | — | — | 52,276 |
Trading assets | — | — | — | — | — | — | — | — | — |
Financial assets mandatorily measured at fair value | 135 | — | — | — | — | — | — | 39 | 174 |
Derivatives | 201 | — | 6 | 8 | 10 | 10 | 16 | 47 | 298 |
Loans and advances to banks | 7,263 | — | — | — | — | — | — | — | 7,263 |
Loans and advances to customers | 17,936 | 9,421 | 5,613 | 5,699 | 6,191 | 17,815 | 42,915 | 112,014 | 217,604 |
– personal | 6,388 | 2,639 | 1,986 | 1,975 | 1,912 | 7,132 | 19,929 | 104,774 | 146,735 |
– corporate and commercial | 10,690 | 5,314 | 2,418 | 2,154 | 3,382 | 9,744 | 22,107 | 6,918 | 62,727 |
– financial | 858 | 1,468 | 1,209 | 1,570 | 897 | 939 | 879 | 322 | 8,142 |
Reverse repurchase agreements – non-trading | 7,285 | 1,923 | 725 | — | 1,843 | — | — | — | 11,776 |
Financial investments | 2,188 | 1,623 | 1,407 | 537 | 3,322 | 3,656 | 11,108 | 13,960 | 37,801 |
Accrued income and other financial assets | 2,612 | 262 | 88 | 14 | 22 | 3 | 3 | — | 3,004 |
Total financial assets at 31 Dec 2024 | 89,896 | 13,229 | 7,839 | 6,258 | 11,388 | 21,484 | 54,042 | 126,060 | 330,196 |
Non-financial assets | — | — | — | — | — | — | — | 10,681 | 10,681 |
Total assets at 31 Dec 2024 | 89,896 | 13,229 | 7,839 | 6,258 | 11,388 | 21,484 | 54,042 | 136,741 | 340,877 |
Off-balance sheet commitments received | |||||||||
Loan and other credit-related commitments | 1,316 | — | — | — | — | — | — | — | 1,316 |
Financial liabilities | |||||||||
Deposits by banks | 833 | 11 | 500 | — | 3,040 | — | 6,760 | — | 11,144 |
Customer accounts1 | 265,481 | 5,010 | 2,961 | 2,832 | 3,150 | 920 | 12 | — | 280,366 |
– personal | 163,612 | 1,362 | 1,963 | 2,618 | 2,946 | 896 | 10 | — | 173,407 |
– corporate and commercial | 89,751 | 3,489 | 903 | 205 | 196 | 23 | 2 | — | 94,569 |
– financial | 12,118 | 159 | 95 | 9 | 8 | 1 | — | — | 12,390 |
Repurchase agreements – non-trading | 420 | — | — | — | — | — | — | — | 420 |
Derivatives | 63 | — | — | — | — | 10 | 25 | 9 | 107 |
Debt securities in issue | 69 | 404 | — | 150 | — | 212 | 998 | 211 | 2,044 |
Accruals and other financial liabilities | 2,513 | 391 | 127 | 104 | 22 | 37 | 53 | 31 | 3,278 |
Subordinated liabilities | — | — | — | 1,415 | 1,000 | 1,078 | 10,444 | 1,749 | 15,686 |
Total financial liabilities at 31 Dec 2024 | 269,379 | 5,816 | 3,588 | 4,501 | 7,212 | 2,257 | 18,292 | 2,000 | 313,045 |
Non-financial liabilities | — | — | — | — | — | — | — | 1,861 | 1,861 |
Total liabilities at 31 Dec 2024 | 269,379 | 5,816 | 3,588 | 4,501 | 7,212 | 2,257 | 18,292 | 3,861 | 314,906 |
Off-balance sheet commitments given | |||||||||
Loan and other credit-related commitments | 77,295 | 45 | 4 | 58 | 31 | 2 | 46 | 78 | 77,559 |
– personal | 40,795 | — | — | — | — | — | — | — | 40,795 |
– corporate and commercial | 30,950 | 45 | 4 | 58 | 31 | 2 | 46 | 78 | 31,214 |
– financial | 5,550 | — | — | — | — | — | — | — | 5,550 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
113 |
Maturity analysis of assets, liabilities and off-balance sheet commitments | |||||||||
Due not more than 1 month | Due over 1 month but not more than 3 months | Due over 3 months but not more than 6 months | Due over 6 months but not more than 9 months | Due over 9 months but not more than 1 year | Due over 1 year but not more than 2 years | Due over 2 years but not more than 5 years | Due over 5 years | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | |
The bank | |||||||||
Financial assets | |||||||||
Cash and balances at central banks | 40,368 | — | — | — | — | — | — | — | 40,368 |
Financial assets mandatorily measured at fair value | 175 | — | — | — | — | — | — | — | 175 |
Derivatives | 45 | 10 | 9 | 3 | 4 | 7 | 41 | 44 | 163 |
Loans and advances to banks | 8,589 | 1,294 | 608 | 220 | 205 | 732 | 1,654 | 23 | 13,325 |
Loans and advances to customers | 21,412 | 5,226 | 5,092 | 4,514 | 4,369 | 16,960 | 43,651 | 117,846 | 219,070 |
– personal | 4,207 | 2,362 | 2,104 | 1,999 | 1,940 | 7,128 | 19,368 | 110,704 | 149,812 |
– corporate and commercial | 9,843 | 2,424 | 2,647 | 2,081 | 2,105 | 8,501 | 22,063 | 6,712 | 56,376 |
– financial | 7,362 | 440 | 341 | 434 | 324 | 1,331 | 2,220 | 430 | 12,882 |
Reverse repurchase agreements – non-trading | 11,902 | 2,145 | 3,137 | 2,647 | 1,729 | — | — | — | 21,560 |
Financial investments | 2,697 | 2,689 | 1,764 | 898 | 1,084 | 5,215 | 13,340 | 13,762 | 41,449 |
Accrued income and other financial assets | 2,549 | 273 | 138 | 56 | 15 | 31 | 16 | — | 3,078 |
Total financial assets at 31 Dec 2025 | 87,737 | 11,637 | 10,748 | 8,338 | 7,406 | 22,945 | 58,702 | 131,675 | 339,188 |
Non-financial assets | — | — | — | — | — | — | — | 8,725 | 8,725 |
Total assets at 31 Dec 2025 | 87,737 | 11,637 | 10,748 | 8,338 | 7,406 | 22,945 | 58,702 | 140,400 | 347,913 |
Off-balance sheet commitments received | |||||||||
Loan and other credit-related commitments | 321 | — | — | — | — | — | — | — | 321 |
Financial liabilities | |||||||||
Deposits by banks | 2,881 | 251 | 162 | 125 | 127 | 4,361 | 939 | 3,250 | 12,096 |
Customer accounts1 | 262,223 | 5,069 | 5,295 | 4,146 | 4,090 | 1,443 | 8 | — | 282,274 |
– personal | 161,704 | 2,536 | 4,180 | 3,660 | 3,931 | 1,431 | — | — | 177,442 |
– corporate and commercial | 85,859 | 2,385 | 1,070 | 465 | 154 | 12 | 8 | — | 89,953 |
– financial | 14,660 | 148 | 45 | 21 | 5 | — | — | — | 14,879 |
Repurchase agreements – non-trading | 200 | 76 | 6,000 | — | — | — | — | — | 6,276 |
Derivatives | 68 | 3 | 10 | 2 | 9 | 8 | 25 | 37 | 162 |
Debt securities in issue | 179 | 125 | — | 150 | — | 500 | 1,146 | — | 2,100 |
Accruals and other financial liabilities | 2,663 | 270 | 145 | 66 | 18 | 33 | 43 | 35 | 3,273 |
Subordinated liabilities | — | 79 | — | 1,000 | — | 2,365 | 10,404 | 2,575 | 16,423 |
Total financial liabilities at 31 Dec 2025 | 268,214 | 5,873 | 11,612 | 5,489 | 4,244 | 8,710 | 12,565 | 5,897 | 322,604 |
Non-financial liabilities | — | — | — | — | — | — | — | 1,731 | 1,731 |
Total liabilities at 31 Dec 2025 | 268,214 | 5,873 | 11,612 | 5,489 | 4,244 | 8,710 | 12,565 | 7,628 | 324,335 |
Off-balance sheet commitments given | |||||||||
Loan and other credit-related commitments | 65,243 | — | — | — | — | — | — | — | 65,243 |
– personal | 31,695 | — | — | — | — | — | — | — | 31,695 |
– corporate and commercial | 31,962 | — | — | — | — | — | — | — | 31,962 |
– financial | 1,586 | — | — | — | — | — | — | — | 1,586 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
114 |
Maturity analysis of assets, liabilities and off-balance sheet commitments (continued) | |||||||||
Due not more than 1 month | Due over 1 month but not more than 3 months | Due over 3 months but not more than 6 months | Due over 6 months but not more than 9 months | Due over 9 months but not more than 1 year | Due over 1 year but not more than 2 years | Due over 2 years but not more than 5 years | Due over 5 years | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | |
The bank | |||||||||
Financial assets | |||||||||
Cash and balances at central banks | 52,275 | — | — | — | — | — | — | — | 52,275 |
Financial assets mandatorily measured at fair value | 135 | — | — | — | — | — | — | 39 | 174 |
Derivatives | 202 | — | 6 | 8 | 10 | 10 | 16 | 43 | 295 |
Loans and advances to banks | 9,666 | 381 | 546 | 187 | 182 | 683 | 1,421 | 4 | 13,070 |
Loans and advances to customers | 19,242 | 5,219 | 4,251 | 4,402 | 5,155 | 17,028 | 39,586 | 111,304 | 206,187 |
– personal | 4,101 | 2,358 | 1,886 | 1,878 | 1,820 | 6,807 | 19,427 | 104,716 | 142,993 |
– corporate and commercial | 8,724 | 2,348 | 1,985 | 1,999 | 3,053 | 8,808 | 18,673 | 6,183 | 51,773 |
– financial | 6,417 | 513 | 380 | 525 | 282 | 1,413 | 1,486 | 405 | 11,421 |
Reverse repurchase agreements – non-trading | 7,285 | 1,923 | 725 | — | 1,843 | — | — | — | 11,776 |
Financial investments | 2,188 | 1,453 | 1,407 | 537 | 3,322 | 3,657 | 11,107 | 13,926 | 37,597 |
Accrued income and other financial assets | 2,788 | 214 | 83 | 13 | 20 | — | — | — | 3,118 |
Total financial assets at 31 Dec 2024 | 93,781 | 9,190 | 7,018 | 5,147 | 10,532 | 21,378 | 52,130 | 125,316 | 324,492 |
Non-financial assets | — | — | — | — | — | — | — | 8,482 | 8,482 |
Total assets at 31 Dec 2024 | 93,781 | 9,190 | 7,018 | 5,147 | 10,532 | 21,378 | 52,130 | 133,798 | 332,974 |
Off-balance sheet commitments received | |||||||||
Loan and other credit-related commitments | 1,346 | — | — | — | — | — | — | — | 1,346 |
Financial liabilities | |||||||||
Deposits by banks | 2,132 | 89 | 636 | 119 | 3,191 | 453 | 7,660 | 500 | 14,780 |
Customer accounts1 | 260,209 | 4,355 | 2,907 | 2,788 | 3,062 | 837 | 2 | — | 274,160 |
– personal | 163,152 | 1,322 | 1,910 | 2,574 | 2,858 | 813 | — | — | 172,629 |
– corporate and commercial | 85,366 | 2,898 | 902 | 205 | 196 | 23 | 2 | — | 89,592 |
– financial | 11,691 | 135 | 95 | 9 | 8 | 1 | — | — | 11,939 |
Repurchase agreements – non-trading | 420 | — | — | — | — | — | — | — | 420 |
Derivatives | 63 | — | — | — | — | 10 | 25 | 9 | 107 |
Debt securities in issue | 69 | 404 | — | 150 | — | — | 998 | — | 1,621 |
Accruals and other financial liabilities | 2,488 | 343 | 123 | 103 | 22 | 35 | 47 | 30 | 3,191 |
Subordinated liabilities | — | — | — | 1,415 | 1,000 | 1,078 | 10,444 | 1,749 | 15,686 |
Total financial liabilities at 31 Dec 2024 | 265,381 | 5,191 | 3,666 | 4,575 | 7,275 | 2,413 | 19,176 | 2,288 | 309,965 |
Non-financial liabilities | — | — | — | — | — | — | — | 1,551 | 1,551 |
Total liabilities at 31 Dec 2024 | 265,381 | 5,191 | 3,666 | 4,575 | 7,275 | 2,413 | 19,176 | 3,839 | 311,516 |
Off-balance sheet commitments given | |||||||||
Loan and other credit-related commitments | 60,288 | — | — | — | — | — | — | — | 60,288 |
– personal | 29,955 | — | — | — | — | — | — | — | 29,955 |
– corporate and commercial | 27,479 | — | — | — | — | — | — | — | 27,479 |
– financial | 2,854 | — | — | — | — | — | — | — | 2,854 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
115 |
Cash flows payable under financial liabilities by remaining contractual maturities | ||||||
Due not more than 1 month | Due over 1 month but not more than 3 months | Due over 3 months but not more than 1 year | Due over 1 year but not more than 5 years | Due over 5 years | Total | |
The group | £m | £m | £m | £m | £m | £m |
Deposits by banks | 968 | 63 | 244 | 4,587 | 2,783 | 8,645 |
Customer accounts | 267,948 | 5,702 | 13,884 | 1,534 | — | 289,068 |
Repurchase agreements – non-trading | 234 | 141 | 6,022 | — | — | 6,397 |
Derivatives | 68 | 11 | 134 | 465 | 844 | 1,522 |
Debt securities in issue | 185 | 162 | 480 | 2,231 | 578 | 3,636 |
Subordinated liabilities | 63 | 205 | 1,548 | 14,349 | 2,675 | 18,840 |
Other financial liabilities | 2,188 | 262 | 112 | 93 | 44 | 2,699 |
271,654 | 6,546 | 22,424 | 23,259 | 6,924 | 330,807 | |
Loan and other credit-related commitments | 81,984 | 33 | 40 | 149 | — | 82,206 |
Financial guarantees | 1,197 | — | — | — | — | 1,197 |
At 31 Dec 2025 | 354,835 | 6,579 | 22,464 | 23,408 | 6,924 | 414,210 |
Proportion of cash flows payable in period % | 86 | 2 | 5 | 5 | 2 | 100 |
Deposits by banks | 881 | 107 | 3,924 | 7,233 | — | 12,145 |
Customer accounts | 265,541 | 5,065 | 9,100 | 1,005 | — | 280,711 |
Repurchase agreements – non-trading | 420 | — | — | — | — | 420 |
Derivatives | 62 | 154 | 411 | 895 | 771 | 2,293 |
Debt securities in issue | 69 | 419 | 191 | 1,501 | 244 | 2,424 |
Subordinated liabilities | 62 | 122 | 2,933 | 13,123 | 1,845 | 18,085 |
Other financial liabilities | 2,018 | 293 | 183 | 105 | 36 | 2,635 |
269,053 | 6,160 | 16,742 | 23,862 | 2,896 | 318,713 | |
Loan and other credit-related commitments | 77,296 | 45 | 93 | 47 | 78 | 77,559 |
Financial guarantees | 1,046 | — | — | — | — | 1,046 |
At 31 Dec 2024 | 347,395 | 6,205 | 16,835 | 23,909 | 2,974 | 397,318 |
Proportion of cash flows payable in period % | 87 | 2 | 4 | 6 | 1 | 100 |
The bank | ||||||
Deposits by banks | 2,919 | 323 | 722 | 6,102 | 3,386 | 13,452 |
Customer accounts | 262,281 | 5,133 | 13,673 | 1,479 | — | 282,566 |
Repurchase agreements – non-trading | 234 | 141 | 6,022 | — | — | 6,397 |
Derivatives | 68 | 11 | 134 | 465 | 844 | 1,522 |
Debt securities in issue | 185 | 137 | 199 | 1,764 | — | 2,285 |
Subordinated liabilities | 63 | 206 | 1,547 | 14,349 | 2,675 | 18,840 |
Other financial liabilities | 2,210 | 223 | 108 | 86 | 44 | 2,671 |
267,960 | 6,174 | 22,405 | 24,245 | 6,949 | 327,733 | |
Loan and other credit-related commitments | 65,243 | — | — | — | — | 65,243 |
Financial guarantees | 1,194 | — | — | — | — | 1,194 |
At 31 Dec 2025 | 334,397 | 6,174 | 22,405 | 24,245 | 6,949 | 394,170 |
Proportion of cash flows payable in period % | 85 | 2 | 5 | 6 | 2 | 100 |
Deposits by banks | 2,188 | 200 | 4,390 | 8,834 | 729 | 16,341 |
Customer accounts | 260,250 | 4,406 | 8,914 | 913 | — | 274,483 |
Repurchase agreements – non-trading | 420 | — | — | — | — | 420 |
Derivatives | 62 | 154 | 411 | 895 | 771 | 2,293 |
Debt securities in issue | 69 | 406 | 156 | 1,166 | — | 1,797 |
Subordinated liabilities | 62 | 122 | 2,933 | 13,123 | 1,845 | 18,085 |
Other financial liabilities | 2,013 | 254 | 180 | 96 | 35 | 2,578 |
265,064 | 5,542 | 16,984 | 25,027 | 3,380 | 315,997 | |
Loan and other credit-related commitments | 60,289 | — | — | — | — | 60,289 |
Financial guarantees | 1,038 | — | — | — | — | 1,038 |
At 31 Dec 2024 | 326,391 | 5,542 | 16,984 | 25,027 | 3,380 | 377,324 |
Proportion of cash flows payable in period % | 86 | 1 | 5 | 7 | 1 | 100 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
116 |
Amounts subject to enforceable netting arrangements | Amounts not subject to enforceable netting arrangements4 | Total | ||||||
Amounts not set off in the balance sheet | Net amount | |||||||
Gross amounts | Amounts offset | Net amounts in the balance sheet | Financial instruments, including non-cash collateral | Cash collateral | ||||
£m | £m | £m | £m | £m | £m | £m | £m | |
Financial assets | ||||||||
Derivatives1 (Note 9) | 2,414 | (2,251) | 163 | (96) | (28) | 39 | 4 | 167 |
Reverse repos, stock borrowing and similar agreements classified as: | ||||||||
– non-trading assets | 28,920 | (7,360) | 21,560 | (21,560) | — | — | — | 21,560 |
Loans and advances to customers2 | 6,380 | (1,722) | 4,658 | (4,505) | — | 153 | — | 4,658 |
At 31 Dec 2025 | 37,714 | (11,333) | 26,381 | (26,161) | (28) | 192 | 4 | 26,385 |
Derivatives1 (Note 9) | 2,821 | (2,526) | 295 | (88) | (207) | — | 3 | 298 |
Reverse repos, stock borrowing and similar agreements classified as: | ||||||||
– non-trading assets | 15,659 | (3,883) | 11,776 | (11,776) | — | — | — | 11,776 |
Loans and advances to customers2 | 6,037 | (2,067) | 3,970 | (3,310) | — | 660 | — | 3,970 |
At 31 Dec 2024 | 24,517 | (8,476) | 16,041 | (15,174) | (207) | 660 | 3 | 16,044 |
Financial liabilities | ||||||||
Derivatives1 (Note 9) | 2,413 | (2,251) | 162 | (57) | (92) | 13 | — | 162 |
Repos, stock lending and similar agreements classified as: | ||||||||
– non-trading liabilities | 13,636 | (7,360) | 6,276 | (6,275) | — | 1 | — | 6,276 |
Customer accounts3 | 11,067 | (1,722) | 9,345 | (4,505) | — | 4,840 | 6 | 9,351 |
At 31 Dec 2025 | 27,116 | (11,333) | 15,783 | (10,837) | (92) | 4,854 | 6 | 15,789 |
Derivatives1 (Note 9) | 2,633 | (2,526) | 107 | (55) | (48) | 4 | — | 107 |
Repos, stock lending and similar agreements classified as: | ||||||||
– non-trading liabilities | 4,303 | (3,883) | 420 | (420) | — | — | — | 420 |
Customer accounts3 | 9,949 | (2,067) | 7,882 | (3,310) | — | 4,572 | 6 | 7,888 |
At 31 Dec 2024 | 16,885 | (8,476) | 8,409 | (3,785) | (48) | 4,576 | 6 | 8,415 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
117 |
HSBC UK Bank plc ordinary shares of £1.00 each, issued and fully paid | ||||
2025 | 2024 | |||
Number | £m | Number | £m | |
At 1 Jan | 50,002 | — | 50,002 | — |
Capitalisation of group reorganisation reserve through bonus share issuance | — | — | 5,248,464,979 | 5,248 |
Less: Bonus shares cancelled | — | — | (5,248,464,979) | (5,248) |
At 31 Dec | 50,002 | — | 50,002 | — |
HSBC UK Bank plc share premium | ||
2025 | 2024 | |
£m | £m | |
At 1 Jan | — | 9,015 |
Reclassification to retained earnings | — | (9,015) |
At 31 Dec | — | — |
Total called up share capital and share premium | ||
2025 | 2024 | |
£m | £m | |
At 31 Dec | — | — |
HSBC UK Bank plc additional tier 1 instruments | |||
2025 | 2024 | ||
£m | £m | ||
£1,096m | Undated Subordinated Additional Tier 1 instrument issued 2014 (Callable December 2019 onwards) | 1,096 | 1,096 |
£1,100m | Undated Subordinated Additional Tier 1 instrument issued 2014 (Callable December 2024 onwards) | 1,100 | 1,100 |
£500m | Undated Subordinated Additional Tier 1 instruments issued 2025 (Callable June 2030 onwards) | 495 | — |
At 31 Dec | 2,691 | 2,196 | |
The group | The bank | |||
2025 | 2024 | 2025 | 2024 | |
£m | £m | £m | £m | |
Guarantees and other contingent liabilities: | ||||
– financial guarantees1 | 1,197 | 1,046 | 1,194 | 1,038 |
– performance and other guarantees | 2,822 | 2,416 | 2,798 | 2,400 |
At 31 Dec | 4,019 | 3,462 | 3,992 | 3,438 |
Commitments2: | ||||
– documentary credits and short-term trade-related transactions | 17 | 142 | 17 | 142 |
– forward asset purchases and forward deposits placed | 574 | 1,641 | 286 | 1,386 |
– standby facilities, credit lines and other commitments to lend | 81,615 | 75,776 | 64,940 | 58,760 |
At 31 Dec | 82,206 | 77,559 | 65,243 | 60,288 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
118 |
2025 | 2024 | |||||
Total future minimum payments | Unearned finance income | Present Value | Total future minimum payments | Unearned finance income | Present Value | |
£m | £m | £m | £m | £m | £m | |
Lease receivables1 | ||||||
– No later than one year | 1,567 | (132) | 1,435 | 1,485 | (127) | 1,358 |
– One to two years | 1,069 | (87) | 982 | 1,070 | (84) | 986 |
– Two to three years | 724 | (54) | 670 | 697 | (50) | 647 |
– Three to four years | 411 | (32) | 379 | 375 | (29) | 346 |
– Four to five years | 240 | (19) | 221 | 350 | (46) | 304 |
– Later than 5 years | 365 | (46) | 319 | 189 | (17) | 172 |
31 Dec2 | 4,376 | (370) | 4,006 | 4,166 | (353) | 3,813 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
119 |
Compensation of KMP | ||
2025 | 2024 | |
£000 | £000 | |
Short-term employee benefits | 12,271 | 10,726 |
Post-employment benefits | 60 | 53 |
Other long-term employee benefits | 1,327 | 917 |
Share-based payments | 5,412 | 3,322 |
Year ended 31 Dec | 19,070 | 15,018 |
Advances and credits, guarantees and deposit balances during the year with KMP1 | ||||
2025 | 2024 | |||
Balance at 31 Dec | Highest amounts outstanding during year | Balance at 31 Dec | Highest amounts outstanding during year | |
£m | £m | £m | £m | |
Advances and credits | 7 | 10 | 10 | 13 |
Deposits | 21 | 58 | 8 | 31 |
Transactions with Directors: advances, credits and guarantees (Companies Act 2006) | ||
2025 | 2024 | |
Balance at 31 Dec | Balance at 31 Dec | |
£000 | £000 | |
Loans | 3,966 | 5,096 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
120 |
Transactions and balances during the year with KMP of the bank’s ultimate parent company1,2 | ||||
2025 | 2024 | |||
Balance at 31 Dec | Highest amounts outstanding during the year | Balance at 31 Dec | Highest amounts outstanding during the year | |
£m | £m | £m | £m | |
Advances and credits | — | — | — | — |
Deposits | — | — | 16 | 33 |
Transactions and balances during the year with the associates and joint venture | ||||
2025 | 2024 | |||
Balance at 31 Dec | Highest balance during the year | Balance at 31 Dec | Highest balance during the year | |
£m | £m | £m | £m | |
Unsubordinated amounts due from the joint venture | 128 | 146 | 55 | 80 |
Amounts due to associates | 28 | 102 | 33 | 90 |
Amounts due to joint venture | 102 | 141 | 50 | 61 |
Guarantees and commitments | 304 | 340 | 249 | 260 |
The group’s transactions and balances during the year with HSBC Holdings plc and subsidiaries of HSBC Holdings plc | ||||||||
2025 | 2024 | |||||||
Due to/from HSBC Holdings plc | Due to/from subsidiaries of HSBC Holdings plc | Due to/from HSBC Holdings plc | Due to/from subsidiaries of HSBC Holdings plc | |||||
31 Dec | Highest balance | 31 Dec | Highest balance | 31 Dec | Highest balance | 31 Dec | Highest balance | |
£m | £m | £m | £m | £m | £m | £m | £m | |
Assets | ||||||||
Derivatives | — | — | 12 | 59 | — | — | 42 | 42 |
Loans and advances to banks | — | — | 721 | 1,161 | — | — | 1,161 | 1,174 |
Reverse repos | — | — | 1,424 | 1,867 | — | — | 1,048 | 1,400 |
Prepayments and accrued income | — | — | 11 | 11 | — | — | 9 | 9 |
Other assets | 1 | 2 | 739 | 776 | 1 | 1 | 641 | 677 |
Total related party assets at 31 Dec | 1 | 2 | 2,907 | 3,874 | 1 | 1 | 2,901 | 3,302 |
Liabilities | ||||||||
Deposits by banks | — | — | 935 | 983 | — | — | 787 | 873 |
Customer accounts | 4,660 | 6,776 | 3,077 | 3,077 | 6,776 | 6,776 | 2,369 | 2,399 |
Repos | — | — | — | 265 | — | — | 265 | 533 |
Other liabilities | 55 | 55 | 315 | 617 | 53 | 56 | 371 | 640 |
Accruals & Deferred Income | 292 | 389 | 13 | 13 | 252 | 322 | 7 | 9 |
Derivatives | — | — | 22 | 62 | — | — | 18 | 41 |
Subordinated liabilities | 16,423 | 17,697 | — | — | 15,686 | 16,078 | — | — |
Total related party liabilities at 31 Dec | 21,430 | 24,917 | 4,362 | 5,017 | 22,767 | 23,232 | 3,817 | 4,495 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
121 |
The bank's transactions and balances during the year with HSBC UK Bank plc subsidiaries, HSBC Holdings plc and subsidiaries of HSBC Holdings plc | ||||||||||||
2025 | 2024 | |||||||||||
Due to/from subsidiaries of HSBC UK Bank plc subsidiaries | Due to/from HSBC Holdings plc | Due to/from subsidiaries of HSBC Holdings plc | Due to/from subsidiaries of HSBC UK Bank plc subsidiaries | Due to/from HSBC Holdings plc | Due to/from subsidiaries of HSBC Holdings plc | |||||||
31 Dec | Highest balance | 31 Dec | Highest balance | 31 Dec | Highest balance | 31 Dec | Highest balance | 31 Dec | Highest balance | 31 Dec | Highest balance | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Assets | ||||||||||||
Derivatives | — | — | — | — | 12 | 59 | — | — | — | — | 42 | 42 |
Loans and advances to banks | 6,691 | 6,751 | — | — | 719 | 1,159 | 5,809 | 5,920 | — | — | 1,159 | 1,173 |
Loans and advances to customers | 9,717 | 9,717 | — | — | — | 5 | 8,703 | 8,703 | — | — | — | — |
Reverse repos | — | — | — | — | 1,424 | 1,867 | — | — | — | — | 1,048 | 1,400 |
Prepayments and accrued income | 114 | 122 | — | — | 9 | 9 | 105 | 107 | — | — | 8 | 8 |
Other assets | 1,091 | 1,572 | 1 | 2 | 737 | 772 | 1,441 | 1,441 | 1 | 1 | 637 | 673 |
Total related party assets at 31 Dec | 17,613 | 18,162 | 1 | 2 | 2,901 | 3,871 | 16,058 | 16,171 | 1 | 1 | 2,894 | 3,296 |
Liabilities | ||||||||||||
Deposits by banks | 4,387 | 4,759 | — | — | 935 | 983 | 3,637 | 4,034 | — | — | 787 | 873 |
Customer accounts | 936 | 936 | 4,660 | 6,776 | 3,077 | 3,077 | 457 | 491 | 6,776 | 6,776 | 2,369 | 2,400 |
Repos | — | — | — | — | — | 265 | — | — | — | — | 265 | 533 |
Derivatives | — | — | — | — | 22 | 62 | — | — | — | — | 18 | 41 |
Other liabilities | 35 | 70 | 55 | 55 | 310 | 609 | 45 | 45 | 51 | 56 | 350 | 626 |
Accruals & Deferred Income | 57 | 65 | 292 | 389 | 13 | 13 | 51 | 60 | 252 | 322 | 8 | 10 |
Subordinated liabilities | — | — | 16,423 | 17,697 | — | — | — | — | 15,686 | 16,078 | — | — |
Total related party liabilities at 31 Dec | 5,415 | 5,830 | 21,430 | 24,917 | 4,357 | 5,009 | 4,190 | 4,630 | 22,765 | 23,232 | 3,797 | 4,483 |
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Subsidiaries | % of share class held by immediate parent company (or by HSBC UK Bank plc where this varies) | Footnotes |
Assetfinance December (F) Limited | 100.00 | 5 |
Assetfinance June (D) Limited (In Liquidation) | 100.00 | 11 |
Assetfinance March (D) Limited | 100.00 | 5 |
Assetfinance September (G) Limited (In Liquidation) | 100.00 | 11 |
B&Q Financial Services Limited (In Liquidation) | 100.00 | 2,11 |
Canada Square Nominees (UK) Limited | 100.00 | 2,6 |
HSBC Bank Pension Trust (UK) Limited | 100.00 | 2,6 |
HSBC Branch Nominee (UK) Limited | 100.00 | 2,5 |
HSBC UK Covered Bonds LLP | N/A | 0,5 |
HSBC Equipment Finance (UK) Limited | 100.00 | 2,5 |
HSBC Finance Limited (In Liquidation) | 100.00 | 2,11 |
HSBC Innovation Bank Limited | 100.00 | 2,9 |
HSBC Invoice Finance (UK) Limited | 100.00 | 2,5 |
HSBC Private Bank (UK) Limited | 100.00 | 2,6 |
HSBC UK Client Nominee Limited | 100.00 | 2,5 |
HSBC UK Societal Projects Limited (In Dissolution) | N/A | 2,4,5 |
HSBC Wealth Client Nominee Limited | 100.00 | 2,5 |
Marks and Spencer Financial Services plc | 100.00 | 2,7 |
Marks and Spencer Unit Trust Management Limited | 100.00 | 2,7 |
Midland Bank (Branch Nominees) Limited | 100.00 | 2,5 |
Midland Nominees Limited | 100.00 | 2,5 |
St Cross Trustees Limited | 100.00 | 2,5 |
Turnsonic (Nominees) Limited | 100.00 | 2,5 |
Associates | % of share class held by immediate parent company (or by HSBC UK where this varies) | Footnotes | |
HSBC UK Covered Bonds (LM) Limited | 20.00 | 1,10 | |
Joint venture | % of share class held by immediate parent company (or by HSBC UK Bank plc where this varies) | Footnotes | |
Vaultex UK Limited | 50.00 | 3,8 | |
Footnotes | |
0 | Where an entity is governed by voting rights, HSBC consolidates when it holds – directly or indirectly – the necessary voting rights to pass resolutions by the governing body. In all other cases, the assessment of control is more complex and requires judgement of other factors, including having exposure to variability of returns, power to direct relevant activities, and whether power is held as an agent or principal. HSBC’s consolidation policy is described in Note 1.2(a) |
1 | Management has determined that these undertakings are excluded from consolidation in the Group accounts as these entities do not meet the definition of subsidiaries in accordance with IFRS. HSBC’s consolidation policy is described in Note 1.2(a) |
2 | Directly held by HSBC UK Bank plc |
3 | Financial year ended 3 October 2025 |
4 | Limited by guarantee and therefore no share capital. HSBC UK Bank plc is the sole member. |
Registered Offices | |
5 | 1 Centenary Square, Birmingham, United Kingdom, B1 1HQ |
6 | 8 Canada Square, London, United Kingdom, E14 5HQ |
7 | Kings Meadow Chester Business Park, Chester, United Kingdom, CH99 9FB |
8 | All Saints Triangle, Caledonian Road, London, United Kingdom, N1 9UT |
9 | Alphabeta, 14-18 Finsbury Square, London, United Kingdom, EC2A 1BR |
10 | 10th Floor 5 Churchill Place, London, United Kingdom, E14 5HU |
11 | C/O Teneo Financial Advisory Limited The Colmore Building, 20 Colmore Circus Queensway, Birmingham, B4 6AT |
HSBC UK Bank plc Annual Report and Accounts 2025 |
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Return on average ordinary shareholders’ Equity and Return on average Tangible Equity | ||
Year ended | ||
31 Dec 2025 | 31 Dec 2024 | |
$m | $m | |
Profit | ||
Profit attributable to the ordinary shareholder | 5,128 | 4,989 |
Profit attributable to the ordinary shareholder, excluding goodwill and other intangible assets impairment | 5,128 | 4,989 |
Equity | ||
Average shareholder's equity | 35,752 | 33,100 |
Effect of average preference shares, additional Tier 1 and other equity instruments | (3,300) | (2,808) |
Average ordinary shareholder's equity | 32,452 | 30,292 |
Effect of goodwill and other intangibles (net of deferred tax) | (5,777) | (5,549) |
Average tangible ordinary shareholder's equity | 26,675 | 24,743 |
Ratio | % | % |
Return on average ordinary shareholders’ equity | 15.8 | 16.5 |
Return on average tangible equity1 | 19.2 | 20.2 |
HSBC UK Bank plc Annual Report and Accounts 2025 |
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Currencies | |
£ | British pound sterling |
€ | Euro |
$ | United States dollar |
Abbreviations | |
1Q25 | First Quarter of 2025 |
2Q25 | Second Quarter of 2025 |
3Q25 | Third Quarter of 2025 |
4Q25 | Fourth quarter of 2025 |
A | |
AGM | Annual General Meeting |
AI | Artificial Intelligence |
AIEA | Average interest-earning assets |
AT1 | Additional tier 1 |
B | |
Basel | Basel Committee on Banking Supervision |
Basel III | Basel Committee’s reforms to strengthen global capital and liquidity rules |
BoE | Bank of England |
Bps | Basis points. One basis point is equal to one hundredth of a percentage point |
BNII | Banking Net Interest Income |
BSO | Business Service Owners |
C | |
CAP | Consolidated Action Plan |
CAPM | Capital asset pricing model |
CBDC | Central Bank Digital Currency |
CEO | Chief Executive Officer |
CET1 | Common equity tier 1 |
CFO | Chief Financial Officer |
CGU | Cash-generating Unit |
CIB | Corporate and Institutional Banking |
CLO | Collateralised Lending Obligation |
CMB | Commercial Banking |
CMI | Continuous Mortality Investigation |
CODM | Chief Operating Decision Maker |
CPI | Consumer Price Index |
CRE | Commercial Real Estate |
CRCO | Chief Risk and Compliance Officer |
CRR | Customer risk rating |
CRR II | The regulatory requirements of the Capital Requirements Regulation and Directive, the CRR II regulation and the Prudential Regulation Authority Rulebook |
D | |
DBO | Defined Benefit Obligation |
DBS | Digital Business Services |
DCF | Discounted cash flows |
Dec | December |
DPD | Days past due |
DRA | Dynamic Risk Assessment |
DQM | Deterministic Quantitative Methods |
DTR | Disclosure Guidance and Transparency Rules |
E | |
EAD | Exposure at default |
EBA | European Banking Authority |
EC | European Commission |
ECL | Expected credit losses. In the income statement, ECL is recorded as a change in expected credit losses and other credit impairment charges. In the balance sheet, ECL is recorded as an allowance for financial instruments to which only the impairment requirements in IFRS 9 are applied. |
EIR | Effective interest rate |
ESG | Environmental, social and governance |
EU | European Union |
EVE | Economic value of equity |
ETR | Effective Tax Rate |
F | |
FCA | Financial Conduct Authority (UK) |
FDIC | Federal Deposit Insurance Corporation |
FMM | Finance Management Meeting |
FRC | Financial Reporting Council |
FSCS | Financial Services Compensation Scheme |
FTE | Full-time equivalent staff |
FVOCI | Fair value through other comprehensive income |
FY | Full Year |
FY24 | Full Year 2024 |
FY25 | Full Year 2025 |
G | |
GDP | Gross domestic product |
GenAI | Generative Artificial Intelligence |
group | HSBC UK Bank plc together with its subsidiary undertakings |
Group | HSBC Holdings plc together with its subsidiary undertakings |
GTRF | Global Trade and Receivables Finance |
H | |
HMRC | HM Revenue and Customs |
HMT | His Majesty’s Treasury |
HSBC Group | HSBC Holdings plc together with its subsidiary undertakings |
HSBC Holdings plc | HSBC Holdings plc, the parent company of HSBC UK |
HSBC UK | HSBC UK Bank plc together with its subsidiary undertakings |
HINV | HSBC Innovation Bank Limited, formerly Silicon Valley Bank UK Limited |
HR | Human Resources |
I | |
IAS | International Accounting Standards |
IASB | International Accounting Standards Board |
IBOR | Interbank offered rate |
IBS | Important Business Services |
ICAAP | Internal capital adequacy assessment process |
IFRS® Accounting Standards | International Financial Reporting Standards as issued by the IASB |
IFRS® Sustainability Disclosure Standards | Standards issue by the International Sustainability Standards Board (‘ISSB’) |
ILAAP | Internal liquidity adequacy assessment process |
IMA | Internal Models Approach |
IMM | Internal Models Method |
IRB | Internal ratings-based |
IRRBB | Interest rate risk in the banking book |
ISSB | International Sustainability Standards Board |
ISRE | International Standards on Review Engagements |
IT | Information technology |
ITOL | Associated Impact Tolerance |
J | |
Jan | January |
K | |
KMP | Key management personnel |
KPI | Key performance indicator |
KPMG | Klynveld Peat Marwick Goerdeler |
L | |
LC | Large Corporates |
LCR | Liquidity coverage ratio |
LFRF | Liquidity and Funding Risk management Framework |
LGD | Loss given default |
LTI | Long-term incentive |
LTV | Loan to value |
M | |
MI | Management Information |
MME | Mid-Market Enterprises |
MREL | Minimum requirements for own funds and eligible liabilities |
MRM | Model Risk Management |
M&S | Marks and Spencer |
MSFS | Marks and Spencer Financial Services plc |
N | |
NII | Net interest income |
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NIM | Net interest margin |
NPS | Net Promoter Score |
NSFR | Net stable funding ratio |
O | |
OCI | Other comprehensive income |
OECD | Organisation of Economic Co-operation and Development |
P | |
PB | Private Bank |
PBT | Profit before tax |
PD | Probability of default |
PLCA | Purpose Led Conduct Approach |
POCI | Purchased or originated credit impaired |
PPA | Power Purchase Agreement |
PPI | Payment protection insurance |
PRA | Prudential Regulation Authority |
PSR | Payment Systems Regulator |
PIV | Pooled Investment Vehicles |
PwC | PricewaterhouseCoopers LLP and its network of firms |
R | |
RAS | Risk Appetite Statement |
RBS | Royal Bank of Scotland |
RBW | Retail Banking and Wealth |
Revenue | Net operating income before change in expected credit losses and other credit impairment charges/Loan impairment charges and other credit provisions, also referred to as revenue |
RMF | Risk Management Framework |
RMM | Risk Management Meeting |
ROC | Resilience Oversight Committee |
RoE | Return on average ordinary shareholders’ equity |
RoTE | Return on average tangible equity |
RPI | Retail Price Index |
RWA | Risk-weighted asset |
S | |
SAF | Subsidiary Accountability Framework |
SAPS | Self-administered pension scheme |
Sep | September |
SICR | Significant increase in credit risk |
SME | Small and medium-sized enterprise |
SOFR | Secured Overnight Financing Rate |
SONIA | Sterling Overnight Index Average |
SPPI | Solely payments of principal and interest |
STD | Standardised Approach |
STR | Statutory Tax Rate |
SVB | Silicon Valley Bank |
T | |
TCFD | Taskforce on Climate-Related Financial Disclosures |
U | |
UK | United Kingdom |
US | United States of America |
UCB | UK-Corporate Banking |
UPW | UK- Personal Banking and Wealth |
UTP | Unlikely to pay |
V | |
VaR | Value at risk |
VAT | Value-added tax |
VIU | Value in use |
W | |
WPB | Wealth and Personal Banking |
Y | |
YoY | Year-on-year |