HSBC profits fall amid $400m fraud-related charge and Iran war
HSBC reported a 4% drop in profits for the first quarter of the year, reaching $9.4bn, as it took a $1.3bn charge linked to loan losses. The charge included $300m tied to the Middle East conflict involving Iran and a $400m fraud-related exposure in the UK private credit sector. The bank's shares fell over 5%, making it the top decliner on the FTSE 100.
- ▪HSBC's profits fell 4% year-on-year to $9.4bn in the first quarter of 2026.
- ▪The bank recorded a $1.3bn loss provision, including $300m due to the Middle East conflict and $400m from a UK fraud-related exposure.
- ▪HSBC's exposure to the private credit sector is $6bn, which the bank says is small relative to its $1tn balance sheet.
- ▪The bank’s shares dropped more than 5%, the largest decline on the FTSE 100 that day.
- ▪HSBC's CFO Pam Kaur described the fraud case as 'idiosyncratic' and emphasized enhanced due diligence measures.
Opening excerpt (first ~120 words) tap to expand
HSBC said profits fell 4% in the first three months of the year. Photograph: Tolga Akmen/EPAView image in fullscreenHSBC said profits fell 4% in the first three months of the year. Photograph: Tolga Akmen/EPAHSBCHSBC profits fall amid $400m fraud-related charge and Iran warLondon-headquartered bank’s shares slide as it sets aside an extra $300m to cover effects of Middle East conflict Business live – latest updates Kalyeena Makortoff Banking correspondentTue 5 May 2026 03.22 EDTLast modified on Tue 5 May 2026 03.32 EDTSharePrefer the Guardian on GoogleHSBC 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…
Excerpt limited to ~120 words for fair-use compliance. The full article is at World news | The Guardian.
Discussion
0 commentsMore from World news | The Guardian
