HSBC profit flat as Middle East provisions offset wealth growth

Credit impairment charges rose 44 per cent to US$1.3 billion, driven by provisions linked to the Middle East conflict and UK fraud exposure

HSBC, Hong Kong’s largest lender, reported broadly flat first-quarter profit as lower interest rates and provisions linked to the Middle East conflict offset solid growth in its wealth management business.

Net profit for the first three months of 2026 rose 0.14 per cent year on year to US$6.94 billion, or 41 US cents per share, the London-based bank said in a Hong Kong stock exchange filing on Tuesday. The result missed the US$7.07 billion consensus estimate of 17 analysts polled by the bank.

Pre-tax profit fell 1 per cent to US$9.38 billion, also below the consensus forecast of US$9.59 billion.

The bank recorded US$1.3 billion in credit impairment charges during the quarter, up 44 per cent from a year earlier.

This included a precautionary provision of US$300 million to reflect uncertainty related to the Middle East conflict, as well as US$400 million tied to fraud-related, secondary securitisation exposure involving a UK financial sponsor.

Rival Standard Chartered reported on Thursday that its bad debt provisions rose 36 per cent, including a US$190 million management overlay linked to the Iran conflict.