HSBC's pre-tax profits experienced a marginal decline in the first quarter of 2026, the banking giant announced. The UK-headquartered lender reported a quarterly profit before tax of $9.4 billion (£6.96 billion), a slight decrease from $9.5 billion (£7 billion) recorded in the same period last year.
Revenue Growth Offset by Higher Charges
The bank attributed the decline to higher expected credit losses and other credit impairment charges, alongside an increase in operating expenses. However, revenue rose by 6% to reach $18.6 billion (£13.7 billion) compared to the first quarter of 2025, driven by robust performance in wealth management and its Hong Kong business segment.
CEO Comments on Performance
Chief Executive Georges Elhedery commented on the results, stating, "We continued to make positive progress in creating a simple, more agile, growing HSBC." He highlighted that each of the bank's four businesses contributed to firm-wide revenue growth and delivered an annualised return on tangible equity (RoTE) exceeding 17%, excluding notable items.
Elhedery added, "In periods of greater uncertainty, customers turn to us more as their trusted partner to navigate complexity with the financial strength, stability and expertise they know they can rely on." He expressed confidence in achieving the targets set out in February 2026.
Outlook
Despite the slight profit dip, HSBC remains optimistic about its strategic direction and ability to meet its financial goals. The bank continues to focus on simplifying its operations and leveraging its strengths in key markets like Hong Kong and wealth management.
