Hang Seng Bank was privatized and delisted in January, a move that supports HSBC’s strategic goals.

A per-share dividend of $0.10 was declared, unchanged from the prior year.

Market commentary noted the Iran crisis casts a shadow over otherwise solid earnings, with continued uncertainty about the economic impact.

Market credit-risk signals persist in private credit markets, affecting HSBC’s quarterly results and sentiment.

Executives stressed HSBC’s role as a trusted partner in uncertain times, highlighting financial strength, stability, and deep expertise as differentiators.

CFO Pam Kaur noted private credit exposure was idiosyncratic, with total private credit around $6 billion, a small portion of the roughly $1 trillion balance sheet.

HSBC reported first-quarter pre-tax profits of about $9.4 billion, slightly down year-on-year and below expectations due to higher credit losses and one-off charges, even as revenue rose with strength in wealth management and Hong Kong.

Total revenue climbed around 6% to $18.6 billion, led by solid performance in wealth management and the Hong Kong business.

An additional $222 million provision was recorded to reflect heightened uncertainty and a worsening economic outlook linked to the Middle East conflict.

CEO and executive team underscored ongoing due diligence and risk assessment across high-risk concentrations, with a cautious stance on private credit exposures.

HSBC kept a 17% return on tangible equity target, but warned that adverse Middle East factors could push RoTE below 17% in 2026 if conditions worsen.

The bank reiterated resilience and reliability, positioning its balance sheet strength and experience as guiding factors for clients amid volatility.