HSBC's Q1 2026 results reveal revenue growth but profit pressures
HSBC has reported mixed financial results for the first quarter of 2026. While revenue rose by 6% to $18.6bn, pre-tax profit fell short of expectations at $9.4bn—$100m lower than the same period last year. The bank also faced higher credit charges and fraud-related costs during the quarter. The bank’s revenue growth came alongside a slight improvement in its net interest margin, which reached 1.6%—one basis point higher than in Q1 2025. However, this was offset by a significant rise in credit charges, which jumped to $1.3bn from $400m a year earlier. Of this amount, $300m was directly linked to the ongoing conflict in the Middle East.
HSBC also recorded a $400m fraud-related charge in the UK, adding to its financial pressures. Despite these challenges, the bank’s wealth division saw strong inflows, with net new money totalling $39bn—$34bn of which came from Asia.
Looking ahead, HSBC has raised its forecast for loan losses in 2026 to 45 basis points. The bank maintains a relatively small exposure to private credit, with around $6bn tied to the sector. HSBC’s Q1 results show a mix of growth and setbacks. Revenue climbed, but higher credit charges and fraud costs weighed on profitability. The bank’s updated loan loss forecast suggests ongoing caution as economic uncertainties persist.
