HSBC shares drop 5.4% after higher credit losses due to Middle East conflict impact

HSBC's shares fell 5.4% following a report of heavier-than-expected credit losses driven by the war in the Middle East. The bank posted a pre-tax profit of $9.37 billion, slightly below analyst forecasts, with $1.3 billion in loan loss provisions reflecting increased economic uncertainty and fraud exposure. Despite these setbacks, HSBC raised its full-year net interest income guidance and showed growth in wealth management, especially in Asia. Investors remain cautious as the bank faces ongoing cost and impairment challenges amid geopolitical tensions.