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HSBC Q1 Financial Performance vs Estimates
Comparison of reported pre-tax profit and revenue against consensus estimates (in USD billions).
Primary Sources
HSBC shares drop as first-quarter pre-tax profit misses estimates - CNBC
Dado Ruvic | ReutersEurope's largest lender HSBC on Tuesday reported first-quarter pre-tax profit of $9.4 billion, missing analysts' estimates on the back of higher expected credit losses and other impairment charges.HSBC's revenue gained 6%, year on year, exceeding estimates, on stronger wealth fee and other income.Here are HSBC's first-quarter results compared with the consensus estimates compiled by the bank.Pre-tax profit: $9.37 billion vs. $9.59 billionRevenue: $18.62 billion vs. $18.49 billionThe lender, whose first-quarter profit before tax fell 1% year on year, saw shares in Hong Kong drop 4.6%.Expected credit losses of $1.3 billion were $400 million higher compared with the same period a year earlier — 9% worse than consensus estimates, according to a Citi report. The credit losses were linked to exposure to a financial sponsor in the UK and provisions owed to increased uncertainty and a worsening economic outlook due to the conflict in the Middle East, HSBC said in a statement. "I feel quite comfortable that at a $1.3 billion charge based on what we know today and the forward outlook we have of various downside plausible scenarios, we are well provided for," HSBC Chief Financial Officer Pam Kaur told CNBC's "Access Middle East" on Tuesday. HSBC said in its statement that it was on course to delivering $1.5 billion in annualized cost reduction by the end of June 2026. "Through the privatisation of Hang Seng Bank, we expect to realise $0.5bn in pre-tax revenue and cost synergies across both our brands in Hong Kong by the end of 2028."The bank completed the privatization of Hang Seng Bank on Jan. 26, with the latter's shares subsequently delisted from the Hong Kong Stock Exchange.HSBC's net interest income rose 8% in the first quarter, year on year, to $8.9 billion as did operating expenses, also up 8%, owed to the impacts of inflation, forex, higher planned spending and performance-related pay. The lender highlighted risks due to the Middle East conflict, including higher oil prices, sharper inflation, a significant slowdown in GDP, warning that if those factors came into play there could be a "mid-to-high single digit percentage" negative impact on its profit before tax.While HSBC maintained its targeted return on tangible equity — a measure of profitability — of 17%, it warned that should the adverse impact from the Middle East crisis materialize, it could bring RoTE, excluding notable items, below 17% in 2026. Annualized RoTE in the reported qua...
HSBC first-quarter pre-tax profit misses estimates on higher expected ...
Europe’s largest lender HSBC on Tuesday reported first-quarter pre-tax profit of $9.4 billion, lacking analysts’ estimates on the again of higher expected credit losses and different impairment costs.HSBC’s income gained 6%, yr on yr, exceeding estimates, on stronger wealth charge and different earnings.Here are HSBC’s first-quarter outcomes in contrast with the consensus estimates compiled by the financial institution.Pre-tax profit: $9.37 billion vs. $9.59 billionRevenue: $18.62 billion vs. $18.49 billionThe lender’s first-quarter profit earlier than tax fell to $9.4 billion, down from $9.5 billion a yr earlier.Expected credit losses of $1.3 billion had been $400 million higher in contrast with the identical interval a yr earlier, in line with HSBC, linked to publicity to a monetary sponsor within the UK and provisions owed to elevated uncertainty and a worsening financial outlook as a result of battle within the Middle East.The financial institution, nevertheless, mentioned that it was on observe to delivering $1.5 billion in annualised value discount by the top of June 2026. “Through the privatisation of Hang Seng Bank, we expect to realise $0.5bn in pre-tax revenue and cost synergies across both our brands in Hong Kong by the end of 2028.”HSBC accomplished the privatization of Hang Seng Bank on Jan. 26, with the latter’s shares subsequently delisted from the Hong Kong Stock Exchange.The lender highlighted dangers as a result of Middle East battle, together with higher oil costs, sharper inflation, a major slowdown in GDP, warning that if these elements got here into play there could possibly be a “mid-to-high single digit percentage” destructive impression on its profit earlier than tax.While HSBC maintained its focused return on tangible fairness — a measure of profitability — of 17%, it warned that ought to the adversarial impression from the Middle East disaster materialize, it might deliver RoTE, excluding notable gadgets, under 17% in 2026. Annualised RoTE within the reported quarter was 17.3%.The HSBC board additionally permitted its first interim dividend for 2026 of 10 cents per share.
HSBC reports flat first-quarter profit, misses estimates
HSBC reported an unexpected $400 million loss linked to a fraud case in Britain on Tuesday, causing it to slightly undershoot first-quarter profit estimates and raising questions about bank ...
HSBC stock outlook: can it hold gains despite Q1 profit miss?
What drove the shortfall The primary culprit was a surge in expected credit losses (ECL). ECL totalled $1.3 billon in the first quarter, $0.4 billon higher than in Q1 2025. The charge was driven ...
