HSBC HOLDINGS(00005): The Court of Appeal of Luxembourg has only admitted HSSL's appeal on the cash claim for the return of Herald. HSSL will file a second appeal.

HSBC Holdings (00005) announced that in a lawsuit related to the Bernard L. Madoff Investment Securities LLC fraud case in Luxembourg in 2009, HSBC Securities Services Luxembourg (HSSL) is defending against the claim for the return of securities and cash in relation to the Herald Fund SPC (Herald). On October 24, 2025, the highest court in Luxembourg rejected HSSL's appeal regarding the return of securities in the Herald case, but accepted the appeal regarding the return of cash. HSSL will now file a second appeal to the Luxembourg Court of Appeal. If HSSL loses the second appeal, they will defend against the amount they are required to pay in the subsequent litigation at the Court of Appeal. In light of this, HSBC Holdings Limited will confirm a provision of $1.1 billion in its comprehensive financial performance for the third quarter of 2025, which will have an impact of approximately 15 basis points on the group's common equity Tier 1 capital ratio. Given that the second appeal is pending, and the complexity and uncertainty of determining the amount to be returned, the final financial impact may differ significantly. This provision will be classified as a significant item requiring attention and will not impact the average tangible equity return for the 2025 fiscal year or any dividends.