HSBC Holdings plc Update on Herald Fund SPC Litigation

HSBC Holdings plc provided an update on the ongoing litigation related to the Madoff fraud involving Herald Fund SPC. The Luxembourg Court of Cassation denied HSBC Securities Services Luxembourg's (HSSL) appeal regarding the securities restitution claim but accepted the appeal for the cash restitution claim. HSSL will pursue a second appeal before the Luxembourg Court of Appeal. If unsuccessful, HSSL will contest the amount to be paid in subsequent proceedings. HSBC will recognize a provision of US$1.1 billion in its Q3 2025 consolidated financial results, impacting the Group's CET1 capital ratio by approximately 15 bps. The financial impact could vary significantly due to the complexities and uncertainties of the case. The provision will be classified as a material notable item and will not affect FY25 RoTE excluding notable items or any dividend. HSBC's Q3 2025 results will be announced on 28 October 2025.