Contingent liabilities, contractual commitments and guarantees

12 Months Ended

Dec. 31, 2024

Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]

Contingent liabilities, contractual commitments and guarantees

33 Contingent liabilities, contractual commitments and guarantees

	HSBC		HSBC Holdings1
	2024	2023	2024	2023
	$m	$m	$m	$m
Guarantees and other contingent liabilities:
–  financial guarantees	16,998	17,009	—	—
–  performance and other guarantees	92,723	94,277	7,327	7,723
–  other contingent liabilities	298	636	—	—
At 31 Dec	110,019	111,922	7,327	7,723
Commitments:2
–  documentary credits and short-term trade-related transactions	7,096	7,818	—	—
–  forward asset purchases and forward deposits placed	61,017	78,535	—	—
–  standby facilities, credit lines and other commitments to lend	793,465	810,797	—	—
At 31 Dec	861,578	897,150	—	—

1Guarantees by HSBC Holdings are in favour of other Group entities. These include contracts that provide protection against credit risk on a specified exposure

but do not meet the definition of financial guarantees.

2Includes $619,367m of commitments at 31 December 2024 (31 December 2023: $661,015m), to which the impairment requirements in IFRS 9 are applied

where HSBC has become party to an irrevocable commitment.

The preceding table discloses the nominal principal amounts of off-balance sheet liabilities and commitments for the Group, which represent

the maximum amounts at risk should the contracts be fully drawn upon and the clients default. As a significant portion of guarantees and

commitments are expected to expire without being drawn upon, the total of the nominal principal amounts is not indicative of future liquidity

requirements. The expected credit loss provision relating to guarantees and commitments under IFRS 9 is disclosed in Note 28.

The majority of the guarantees have a term of less than one year, while guarantees with terms of more than one year are subject to HSBC’s

annual credit review process.

Contingent liabilities arising from legal proceedings, regulatory and other matters against Group companies are excluded from this note but are

disclosed in Notes 28 and 35.

Financial Services Compensation Scheme

The Financial Services Compensation Scheme (‘FSCS’) provides compensation, up to certain limits, to eligible customers of financial services

firms that are unable, or likely to be unable, to pay claims against them. The FSCS may impose a further levy on the Group to the extent the

industry levies imposed to date are not sufficient to cover the compensation due to customers in any future possible collapse. The ultimate

FSCS levy to the industry as a result of a collapse cannot be estimated reliably. It is dependent on various uncertain factors including the

potential recovery of assets by the FSCS, changes in the level of protected products (including deposits and investments) and the population of

FSCS members at the time.

Associates

HSBC’s share of associates’ contingent liabilities, contractual commitments and guarantees amounted to $74.5bn at 31 December 2024 (2023:

$69.9bn). No matters arose where HSBC was severally liable.