HSBC delivered a broadly flat first-quarter profit that fell short of analyst expectations, as a specific fraud-related credit charge in its UK institutional banking unit and rising provisions linked to the US-Iran conflict pushed credit losses sharply higher. The result underscores how geopolitical turbulence and isolated credit events can rapidly erode what might otherwise be a stable earnings picture, even as the bank's wealth and interest income businesses continued to grow.
The London-based bank said first-quarter net profit was largely flat as higher credit charges amid the Middle East conflict offset the strength in its Hong Kong, U.K. and wealth businesses.
HSBC Holdings reported a flat first-quarter profit on Tuesday, as rising provisions due to higher credit charge from UK corporate banking business and rising provisions for conflict in the Middle East.
HSBC's revenue gained 6%, year on year, exceeding estimates. The lender's first-quarter profit before tax fell to $9.4 billion, down from $9.5 billion a year earlier.
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Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) stock received an analyst downgrade from HSBC on Monday, May 4, with the firm cutting its rating to Hold from Buy while nudging the price target to $340 from $335.
HSBC on Wednesday named Gautam Anand to head its global India private banking division as the lender looks to strengthen cross-border services for wealthy clients with links to India.
Caprock Group LLC increased its position in HSBC Holdings plc (NYSE: HSBC) by 9.8% in the undefined quarter, according to its most recent filing with the SEC. The fund owned 65,429 shares of the financial services provider's stock after purchasing an additional 5,860 shares during the period. Caprock Group LLC's holdings in HSBC
Indian equities came under renewed pressure after HSBC downgraded its stance on the market to underweight, warning that a surge in oil prices linked to the Middle East conflict could derail the country's earnings recovery and dampen investor sentiment. The downgrade, the brokerage's second in less than a month, reflects growing concern that rising energy costs will weigh on macroeconomic stability in one of the world's largest crude importers.
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A group of institutional investors has asked Britain's accounting regulator to review HSBC's 2025 accounts and audit to gauge whether the bank is properly assessing the material risks posed by climate change.