HSBC Q1 profit misses forecasts due to higher credit losses amid Gulf conflict

HSBC reported a first-quarter pre-tax profit of $9.37 billion, slightly below analyst expectations and down from $9.48 billion a year earlier. The profit was impacted by increased expected credit losses linked to the Gulf conflict, rising to $1.3 billion, including fraud-related exposures in the UK. Despite this, net operating income rose to $18.62 billion, driven by stronger wealth management and net interest income. HSBC maintained its 2028 return on tangible equity target and raised its 2026 net interest income guidance to around $46 billion, while declaring a stable dividend of $0.10 per share.