HSBC first-quarter pre-tax profit misses estimates on wider-than-expected credit losses
The bank booked $1.3 billion in credit impairment charges and a $400 million fraud-related loss, underscoring rising pressure from geopolitical and lending risks.
- HSBC reported first-quarter pre-tax profit of US$9.38 billion on Tuesday, missing the consensus forecast of US$9.59 billion as credit losses widened.
- Credit impairment charges surged to US$1.3 billion, up 44 per cent year-over-year, while operating expenses rose, offsetting revenue growth in wealth management.
- The charges included a US$300 million precautionary provision for Middle East conflict uncertainty and US$400 million linked to fraud-related exposure involving a London-based financial sponsor.
- Sector-Wide credit stress emerged as Rival Standard Chartered's bad debt provisions rose 36 per cent, including a US$190 million overlay tied to Iran conflict exposure.
- Chief executive Georges Elhedery said each of the four businesses delivered annualised RoTE in excess of 17 per cent, maintaining confidence in February 2026 targets.
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Regulators around the world have been more concerned with the exposure of banks to the private credit sector of $3.5 trillion
Europe's largest bank causes concerns about the private credit market. Rival Barclays is also affected. Especially one development burdens the balance sheet of the money house.
HSBC profits worse than forecast after jump in bad debt provisions
The UK lender reported first-quarter pre-tax profits of £9.4 billion US dollars (£6.96 billion), down from 9.5 billion (£7 billion) a year earlier. HSBC has seen first-quarter profits miss expectations after taking a 1.3 billion dollar (£960 million) hit on bad debts including a fraud-related charge in the UK and impact from the Middle East war. The UK-based lender reported pre-tax profits of £9.4 billion US dollars (£6.96 billion), down slightl…
HSBC profit underwhelms on $400m private credit loss
HSBC has today reported an unexpected $400m loss linked to a fraud case in Britain, causing it to slightly undershoot first-quarter profit estimates and raising questions about bank lending to the $3.5 trillion private credit industry.
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