Group 1 - HSBC is conducting a strategic evaluation of its retail banking operations in Egypt as part of a global restructuring effort, emphasizing Egypt's significance as a key market with growth prospects [1][2] - The review will focus solely on retail banking and will not impact HSBC's wholesale banking activities or other operations in Egypt [2] - HSBC is also reviewing its retail operations in other countries, including Indonesia, Australia, Bangladesh, and Sri Lanka, while proceeding with the sale of its retail business in Bahrain [2][4] Group 2 - HSBC and its subsidiary HSBC Asia Pacific have proposed to take Hang Seng Bank private in a transaction valued at HK$106.1 billion ($13.63 billion), offering HK$155 ($19.92) per share, which represents a 33% premium over the 30-day average closing price [3] - The transaction values Hang Seng Bank at HK$290 billion ($37.2 billion) and will lead to its delisting from the Hong Kong Stock Exchange [3]

Core Viewpoint - HSBC Continental Europe reported strong revenue growth in Corporate and Institutional Banking for the first half of 2025, driven by increased client activity, although this was partially offset by technology investments and restructuring costs [2][4]. Financial Performance - Profit after tax for the first half of 2025 was €373 million, stable compared to €370 million in the same period of 2024 [5]. - Net operating income before expected credit losses and other credit impairment charges was €1,912 million, up from €1,699 million in the first half of 2024, primarily due to higher revenues in Corporate and Institutional Banking [5]. - Profit before tax was €490 million, down from €549 million in the first half of 2024 [7]. Credit Losses and Expenses - The change in expected credit losses and other credit impairment charges was a charge of €70 million, compared to €13 million in the first half of 2024, with a cost of risk of 30 basis points [6]. - Operating expenses increased to €1,352 million from €1,137 million in the first half of 2024, attributed to restructuring costs and technology investments [6]. Balance Sheet and Ratios - Total assets as of June 30, 2025, were €280 billion, up from €265 billion at the end of 2024 [7]. - The average liquidity coverage ratio (LCR) was 144%, and the net stable funding ratio (NSFR) was 145% [8]. - The fully loaded common equity tier 1 (CET1) ratio was 15.5%, and the total capital ratio was 19.8% [8]. Business Strategy and Disposals - HSBC Continental Europe is executing a simplification strategy, focusing on areas with competitive advantages and growth opportunities [4]. - The company has signed agreements to sell its custody and fund administration businesses in Germany and a portfolio of home and certain other loans in France [3][19]. - The sale of its private banking business in Germany and life insurance business in France is expected to complete in the second half of 2025 [13][14].