HSBC’s stage 3 loans jump in H1 by most since pandemic
Deteriorating CRE loans in Hong Kong drive surge
HSBC’s stage 3 loans – those classified as credit-impaired – rose by 13.5% to $24.4 billion in the first half of the year, marking the largest proportional increase since H1 2020.
Expected credit losses (ECLs) on total stage 3 loans decreased by 2.2% to $7.1 billion, resulting in a 4.7-percentage-point decline in coverage to 29.1%, the lowest level recorded since at least 2017.
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