Zhi Tong Cai Jing·2025-10-26 22:45Core Viewpoint - HSBC Holdings is involved in a legal dispute related to the Bernard L. Madoff Investment Securities LLC fraud case, with implications for its financial performance in 2025 [1][2] Group 1: Legal Proceedings - HSBC Securities Services Luxembourg (HSSL) is defending against claims for the return of securities and cash related to the Herald Fund SPC [1] - The Luxembourg Supreme Court rejected HSSL's appeal regarding the return of securities but accepted the appeal concerning the return of cash [1] - HSSL plans to file a second appeal with the Luxembourg Court of Appeal [1] Group 2: Financial Impact - HSBC Holdings will recognize a provision of $1.1 billion in its consolidated financial results for Q3 2025, impacting the common equity tier 1 capital ratio by approximately 15 basis points [2] - The final financial impact may vary significantly due to the ongoing appeal and the complexity and uncertainty surrounding the determination of the return amount [2] - This provision will be classified as a significant item and will not affect the average tangible equity return or any dividends for the fiscal year 2025 [2]