We are looking at HSBC's expected credit loss coverage ratio.

And in order to figure out the coverage ratio, we need to figure out what the gross carrying loans and advances are.

So it looks like we've got the loans and advances to customers on the face of the balance sheet, but it's worth recognizing that this is the net amount having accounted for the allowance or provision, uh, for expected credit losses.

So if we wanted to arrive at the gross carrying loan amount, what we'd need to do is go and grab the loans and advances on the balance sheet and just add back the provision for expected credit losses that just copy that out to the right.

So we can see that for both years.

Now, if you want the coverage ratio, what you really want to say is what is our allowance for expected credit losses relative to the gross loans and advances sitting on our balance sheet? That is the value of the loans and advances before we've applied any allowance for those credit losses.

So what we're gonna do is grab the allowance and divide it by the gross loan amount.

Clearly the higher the allowance than the more prudent HSBC is being.

Or you could consider that perhaps they consider the loans and advances to be slightly more risky, and therefore they feel like they've had to increase their allowance for expected credit losses appropriately.