05:13 AM EDT, 10/27/2025 (MT Newswires) -- HSBC Holdings ( HSBC ) said Monday its Luxembourg unit had its appeal rejected on the securities claim, but its cash claim appeal was accepted in the Herald Fund case, and it plans on filing a second appeal.

The case relates to the Bernard Madoff Investment Securities fraud and a 2009 Luxembourg lawsuit by Herald Fund SPC seeking the return of securities and cash, it said.

HSBC ( HSBC ) will book a $1.1 billion provision in its Q3 results Tuesday, cutting its CET1 capital ratio by about 15 basis points, the bank said.

If the second appeal fails, HSBC ( HSBC ) will contest the amount payable in later proceedings, and the eventual impact could differ due to uncertainties, it added.

The provision will be treated as a material notable item and will not affect return on tangible equity, excluding notable items or any dividend, HSBC ( HSBC ) said.