
	2024	2023
	$m	$m
Goodwill	4,118	4,323
Other intangible assets1	8,266	8,164
At 31 Dec	12,384	12,487

1Included within other intangible assets is internally generated software with a net carrying amount of $7,100m (2023: $6,895m). During the year, capitalisation

of internally generated software was $2,476m (2023: $2,306m), impairment was $67m (2023: reversal impairment of $285m) and amortisation was $1,995m


Movement analysis of goodwill
	2024	2023
	$m	$m
Gross amount
At 1 Jan	19,560	18,965
Exchange differences	(962)	523
Reclassified to held for sale and additions1	28	73
Other	—	(1)
At 31 Dec	18,626	19,560
Accumulated impairment losses
At 1 Jan	(15,237)	(14,809)
Exchange differences	716	(428)
Reclassified to held for sale1	13	—
At 31 Dec	(14,508)	(15,237)
Net carrying amount at 31 Dec	4,118	4,323

1Includes goodwill arising from acquisition of Silkroad, offset by goodwill reclassified to held for sale associated with sales of HSBC Bank Armenia, private

banking business in Germany, and planned sale of HSBC Assurances Vie (France). For further details, see Note 23.

The Group’s impairment test in respect of goodwill allocated to each cash-generating unit (‘CGU’) is performed at 1 October each year. A

review for indicators of impairment is undertaken at each subsequent quarter-end and at 31 December 2024. No indicators of impairment were

The recoverable amount of all CGUs to which goodwill has been allocated was equal to its value in use (‘VIU’) at each respective testing date.

The VIU is calculated by discounting management’s cash flow projections for the CGU. The key assumptions used in the VIU calculation for


Key assumptions in VIU calculation – significant CGUs at 1 October 20241
	Carrying amount at 1 Oct 2024	of which goodwill	Value in use at 1 Oct 2024	Discount rate	Growth rate beyond initial cash flow	Carrying amount at 1 Oct 2023	of which goodwill	Value in use at 1 Oct 2023	Discount rate	Growth rate beyond initial cash flow projections
	$m	$m	$m	%	%	$m	$m	$m	%	%
HSBC UK Bank plc – WPB	12,785	2,843	27,118	10.6	2.0	11,167	2,597	27,933	10.4	2.0

1For impacts arising from the revised organisational structure effective from 1 January 2025, see Note 1.2(a).

individually significant. The Group’s CGUs do not carry on their balance sheets any significant intangible assets with indefinite useful lives, other

The Group does not consider there to be a significant risk of a material adjustment to the carrying amount of goodwill in the next financial year,

but does consider this to be an area that is inherently judgemental. The cash flow projections for each CGU are based on forecast profitability

plans approved by the Board and minimum capital levels required to support the business operations of a CGU. The Board challenges and

endorses planning assumptions in light of internal capital allocation decisions necessary to support our strategy, current market conditions and

macroeconomic outlook. For the 1 October 2024 impairment test, cash flow projections until the end of 2029 were considered, in line with our

internal planning horizon. Key assumptions underlying cash flow projections reflect management’s outlook on interest rates and inflation, as

well as business strategy, including the scale of investment in technology and automation. Our cash flow projections include known and

observable climate-related opportunities and costs associated with our sustainable products and operating model. As required by IFRS

Accounting Standards, estimates of future cash flows exclude estimated cash inflows or outflows that are expected to arise from restructuring

initiatives before an entity has a constructive obligation to carry out the plan, and would therefore have recognised a provision for restructuring

The rate used to discount the cash flows is based on the cost of equity assigned to each CGU, which is derived using a capital asset pricing

model (‘CAPM’) and market implied cost of equity. CAPM depends on a number of inputs reflecting financial and economic variables, including

the risk-free rate and a premium to reflect the inherent risk of the business being evaluated. These variables are based on the market’s

assessment of the economic variables and management’s judgement. The discount rates for each CGU are refined to reflect the rates of

inflation for the countries within which the CGU operates. In addition, for the purposes of testing goodwill for impairment, management

supplements this process by comparing the discount rates derived using the internally generated CAPM, with the cost of equity rates produced

by external sources for businesses operating in similar markets. The impacts of climate risk are included to the extent that they are observable

The long-term growth rate is used to extrapolate the cash flows in perpetuity because of the long-term perspective within the Group of

business units making up the CGUs. These growth rates reflect inflation for the countries within which the CGU operates or from which it

At 1 October 2024, given the extent by which VIU exceeds carrying amount, the HSBC UK WPB CGU was not sensitive to reasonably possible

adverse changes in key assumptions supporting the recoverable amount. In making an estimate of reasonably possible changes to

assumptions, management considers the available evidence in respect of each input to the VIU calculation, such as the external range of

discount rates observable, historical performance against forecast and risks attaching to the key assumptions underlying cash flow projections.

Impairment of other intangible assets is assessed in accordance with our policy explained in Note 1.2(n) by comparing the net carrying amount

of CGUs containing intangible assets with their recoverable amounts. Recoverable amounts are determined by calculating an estimated VIU or

fair value, as appropriate, for each CGU. No significant impairment was recognised during the year.

The Group does not consider there to be a significant risk of a material adjustment to the carrying amount of other intangible assets in the next

financial year, but does consider this to be an area that is inherently judgemental. We used a number of assumptions in our VIU calculation, in

–Management’s judgement in estimating future cash flows: We considered past business performance, current market conditions and our

macroeconomic outlook to estimate future earnings. As required by IFRS Accounting Standards, estimates of future cash flows exclude

estimated cash inflows or outflows that are expected to arise from restructuring initiatives before an entity has a constructive obligation to

carry out the plan, and would therefore have recognised a provision for restructuring costs. For some businesses, this means that the

benefit of certain strategic actions may not be included in the impairment assessment, including capital releases. Our cash flow projections

include known and observable climate-related opportunities and costs associated with our sustainable products and operating model.

–Long-term growth rates: The long-term growth rate is used to extrapolate the cash flows in perpetuity because of the long-term perspective

–Discount rates: Rates are based on a combination of CAPM and market-implied calculations considering market data for the businesses and

geographies in which the Group operates. The impacts of climate risk are included to the extent that they are observable in discount rates

As explained in Note 1.2(a), estimates of future cash flows for CGUs are made in the review of goodwill and non-financial assets for

impairment. Non-financial assets include other intangible assets shown above, and owned property, plant and equipment and right-of-use

assets (see Note 22). The most significant sources of estimation uncertainty are in respect of the goodwill balances disclosed above. There are

no non-financial asset balances relating to individual CGUs which involve estimation uncertainty that represents a significant risk of resulting in

a material adjustment to the results and financial position of the Group within the next financial year.

Non-financial assets are widely distributed across CGUs within the legal entities of the Group, including Corporate Centre assets that cannot be

allocated to CGUs and are therefore tested for impairment at consolidated level. The recoverable amounts of other intangible assets, owned

property, plant and equipment, and right-of-use assets cannot be lower than individual asset fair values less costs to dispose, where relevant.

At 31 December 2024 none of the CGUs were sensitive to reasonably possible adverse changes in key assumptions supporting the

recoverable amount. In making an estimate of reasonably possible changes to assumptions, management considers the available evidence in

respect of each input to the VIU calculation, such as the external range of discount rates observable, historical performance against forecast