HSBC Q1 Profit Falls to $9.4B as Credit Losses Bite Despite Revenue Beat
HSBC posted first-quarter net income of $9.4 billion, falling short of analyst expectations despite revenue of $18.62 billion that edged past consensus by $80 million. Non-GAAP earnings per share came in at $0.44, missing estimates by a stark $1.72 — a gap driven by a meaningful rise in credit charges during the quarter. The bank also updated its full-year 2026 financial outlook alongside the results.
The $1.72 EPS miss signals that rising credit losses are eroding HSBC's profitability faster than revenue growth can compensate — a warning sign for global banking exposure, particularly in Asia-Pacific markets where HSBC has heavy concentration. Investors in international bank ETFs or HSBC directly should watch whether the FY26 guidance update reflects management confidence or a quiet lowering of the bar. Broader financial sector sentiment could take a mild hit if credit deterioration trends are seen as systemic rather than HSBC-specific.
HSBC FY26 guidance details: review the updated outlook released alongside Q1 results for specific net interest margin and return-on-equity targets. Watch for Q2 2025 earnings from global banking peers Barclays (late April) and Standard Chartered (early May) for confirmation of whether rising credit losses are an industry-wide trend.
- HSBC profits fall on higher credit charges · Financial Times
- HSBC Non-GAAP EPS of $0.44 misses by $1.72, revenue of $18.62B beats by $80M; updates FY26 outlook · Seeking Alpha
- HSBC Q1 profit dips as higher credit losses offset revenue growth · Investing.com
- HSBC takes hit from fraud-related credit loss, Iran war impact · The Straits Times Business
- HSBC hit by $400m UK fraud-related charge; Rachel Reeves clashed with Scott Bessent over Iran war criticism – business live · The Guardian Business
- HSBC profit drops after Iran war and private credit charges bite · City AM
- HSBC Misses Estimates on Fraud Charge, Economic Risks · Bloomberg
- HSBC misses profit estimates as U.K. fraud charge and Middle East provisions weigh on results · Quartz
- HSBC trades lower as higher credit losses hit Q1 profit · Seeking Alpha
- HSBC: Fraud case leads to increase in provisions · Handelsblatt
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