HSBC Q1 Net Income $6.94B, Revenue Up 6% Despite Rising Credit Charges
HSBC•HSBC reported first-quarter net income of $6.94 billion and pre-tax profit of $9.37 billion, missing estimates of $9.59 billion while revenue rose 6% year-on-year to $33.84 billion. Net interest revenue hit $19.13 billion, topping forecasts, but a fraud-related credit charge in its UK institutional banking unit and higher provisions linked to the US-Iran conflict pushed credit losses sharply higher.
1. Profit and EPS
HSBC’s first-quarter net income reached $6.94 billion, with reported earnings of $2.00 per share and adjusted EPS of $2.20. Pre-tax profit totaled $9.37 billion, falling short of the $9.59 billion analysts had forecast.
2. Revenue Breakdown
Total revenue climbed 6% year-on-year to $33.84 billion, while net interest revenue—revenue net of interest expense—was $19.13 billion, outperforming Street expectations and driven by strong lending margins.
3. Credit Charge Effects
A fraud-related credit charge in its UK institutional banking unit and increased provisions tied to the US-Iran conflict drove a sharp rise in credit losses, offsetting gains from the bank’s wealth and interest income businesses.
