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Investor Presentaiton

Credit performance Adjusted ECL charge trend, $m 4021 and 1Q22 benefitted from releases of Covid-19 related provisions 1,427 ECL 1,071 598 363 482* 621 424 196 628 151 4Q21 1Q22 2022 3Q22 4Q22 0.19 0.25 0.17 0.41 0.55 Strategy 4Q22 results Appendix o/w: mainland China CRE ECL charge as a % of average gross loans and advances 55 FY22 ECL charge of $3.6bn was 35bps of average gross loans and advances 55 4Q22 ECL charge of $1.4bn: ā—† This includes $0.6bn for mainland China CRE exposures ā—† The remaining $0.8bn charge represents c.30bps of average loans, comprised of a $0.5bn Wholesale charge and $0.3bn Personal charge Given current macroeconomic headwinds, whilst we retain our through-the-cycle planning range of 30-40bps, we expect a FY23 ECL charge of around 40bps55 ECL charge (release) by geography, $m 4Q22 ECL charge by stage, $bn 4Q22 3022 Stage 1-2 Stage 3 Total Hong Kong* 758 505 Mainland China 100 87 Wholesale 0.2 0.9 1.1 Other Asia 36 71 Personal 0.1 0.2 0.3 UK RFB 236 278 HSBC Bank plc 55 (14) Total 0.3 1.1 1.4 Mexico 173 94 Other 69 50 Total 1,427 1,071 * Total charge was $482m. China CRE ECL charge of $628m was partly offset by the release of Covid-19 related provisions Charges largely relate to offshore China CRE exposures booked on Hong Kong balance sheets 24 24
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