HSBC Profits Fall Below Forecasts Amid Higher Provisions

HSBC has reported quarterly profits that fell below analyst forecasts, primarily due to a significant increase in provisions for bad debt and a $400 million fraud-related charge. The bank also updated its FY26 outlook following these results.

5 May, 04:19 — 5 May, 11:50

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Why this matters

HSBC is one of the world's largest banking and financial services organizations, and its financial health is a key indicator for the global economy. A profit miss and increased provisions can signal broader economic headwinds or specific challenges within its operational regions.

Key entitiesHSBC

The Story

What 5 sources agree on, dispute, and miss

What sources agree on

HSBC's first-quarter pre-tax profits were $9.4 billion
These profits fell below analyst expectations
The decline was partly due to higher provisions for bad debts

Key claims2 agreed · 3 unverified

✓

HSBC's first-quarter pre-tax profits were $9.4 billion

agreed·The IndependentFTThe Guardian

✓

HSBC's profits were worse than forecast

agreed·The IndependentFTseeking-alpha

HSBC set aside an extra $300 million to cover effects of the Middle East conflict

unverified·The Guardian

HSBC suffered a $1.3 billion hit to profits

unverified·The Guardian

HSBC's Non-GAAP EPS of $0.44 missed by $1.72

unverified·seeking-alpha

Coverage gaps

A $400 million fraud-related charge and an additional $300 million set aside for the Middle East conflict's effects

ReportedThe Guardian

MissingThe IndependentFTseeking-alpha

HSBC's Non-GAAP EPS of $0.44 missed by $1.72, and revenue of $18.62 billion beat by $80 million, along with an updated FY26 outlook

Reportedseeking-alpha

MissingThe IndependentThe GuardianFT

The Story

Analyzing sources…

Source Diversity

High (63/100)

5 sources33/33

Spectrum spread— 3/5 buckets covered17/33

Far L2

Far Left (2)

The IndependentThe Guardian

Left

Center1

Center (1)

Right2

Right (2)

seeking-alphastraits-times

Far R

Geographic diversity— 3 regions13/34

UK3US1Singapore1

Political spectrum

LeftCenterRight

guardian

independent

seeking-alpha

Outlet rating This story

SourceOutletiGeneral editorial lean of the outletStoryiHow they covered this specific storyToneFactuality

The GuardianleftleftanalyticalMostly FactualHighlights fraud, geopolitical impact on profits

The Independentcenter-leftcenter-leftneutralMostly FactualFocus on financial results and bad debt

Coverage leans: center-left

The coverage generally focuses on the financial performance and underlying causes, with the Guardian providing a more critical lens by highlighting specific charges and broader geopolitical impacts.

Sources

Showing 4 of 5 sources

FTVery High96d ago

HSBC profits fall on higher credit charges

First-quarter income dips to $9.4bn, missing analyst expectations

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The GuardianMostly Factual96d ago

HSBC profits fall amid $400m fraud-related charge and Iran war

London-headquartered bank’s shares slide as it sets aside an extra $300m to cover effects of Middle East conflict Business live – latest updates HSBC has suffered a $1.3bn (£961m) hit to profits, fuelled by the fallout from the US-Israel war on Iran and fraud in the troubled private credit sector. The London-headquartered bank said profits fell 4% in the first three months of the year, dropping $100m to $9.4bn, compared with the same period in 2025. Revenue increased 6% to $18.6bn. Continu...

By Kalyeena Makortoff Banking correspondent

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The IndependentMostly Factual96d ago