Financial Performance - Net Interest Income (NII) decreased by 7% YoY, from HK$15483 million to HK$14339 million[8] - Fee and Other Income increased significantly by 34% YoY, reaching HK$6636 million, driven by the Wealth business[8, 11] - Operating Profit decreased by 25% YoY, from HK$11396 million to HK$8549 million[8] - Profit Before Tax (PBT) decreased by 28% YoY, from HK$11307 million to HK$8097 million[8] - Earnings per share (EPS) decreased by 34% YoY, from HK$504 to HK$334[8] - Dividend per share (DPS) increased by 8% YoY, from HK$240 to HK$260[8] Balance Sheet - Customer Loans and Advances decreased by 2% compared to December 2024, from HK$819 billion to HK$803 billion[8, 13] - Customer Deposits increased by 3% compared to December 2024, from HK$1267 billion to HK$1300 billion, driven by affluent customer growth[8, 13, 14] - Non-performing Loan (NPL) ratio increased to 669%, a 57bps increase HoH[8, 11] Capital and Efficiency - Common Equity Tier 1 (CET1) ratio increased to 213%[8, 11] - Total Capital Ratio (CAR) increased to 249%[8, 11] - Cost Efficiency Ratio (CER) improved slightly to 361%, a 07 percentage point decrease YoY[8, 20]

Core Viewpoint - HSBC Holdings reported a significant decline in pre-tax profit for Q1 2025, primarily due to falling revenues and increased expected credit losses [1][2]. Financial Performance - Pre-tax profit for Q1 2025 was $9.48 billion, a decrease of 25% from the same quarter last year [1]. - Total revenues fell to $17.65 billion, down 15% year over year, mainly due to lower net interest income and other operating income [2]. - Operating expenses slightly decreased to $8.1 billion [2]. - Expected credit losses (ECL) amounted to $876 million, reflecting a year-over-year increase of 21.7% [2]. Capital Ratios - The common equity tier 1 (CET1) ratio as of March 31, 2025, was 14.7%, down from 15.2% a year earlier [2]. - The leverage ratio decreased to 5.4% from 5.7% in the prior-year quarter [2]. Business Line Performance - The Hong Kong Business segment reported a pre-tax profit of $2.54 billion, up 9.8% year over year, driven by increased total revenues [3]. - The UK Business segment's pre-tax profit was $1.55 billion, down 6.3% from the previous year, impacted by higher ECL charges and increased expenses [3]. - Corporate and Institutional Banking saw a pre-tax profit of $3.52 billion, an increase of 10.9% year over year, attributed to higher total revenues and lower ECL charges [4]. - International Wealth and Premier Banking reported a pre-tax profit of $1.19 billion, which declined marginally due to higher ECL charges [4]. - The Corporate Centre segment's pre-tax profit fell to $682 million from $4.2 billion in the year-ago quarter [4]. Outlook - HSBC's strong capital position, higher interest rates, global network, and business simplification initiatives are expected to support its financials, despite concerns over higher expenses and subdued revenues due to weak loan demand [5].