HSBC released its first‑quarter 2026 financial results on May 5, 2026, reporting total revenue of $18.62 billion, up 6 % year‑on‑year, driven by stronger wealth‑management fee income and higher banking net interest income. The revenue beat analysts’ consensus of $18.53‑$18.6 billion, reflecting robust demand in core segments.
Profit before tax excluding notable items fell to $10.1 billion, a decline from $10.3 billion in Q1 2025, largely because of a $1.3 billion increase in expected credit losses. The rise in provisions was attributed to a fraud‑related UK exposure and an overlay linked to the Middle East conflict, offsetting gains from deposit growth.
Earnings per share excluding notable items were $0.44, missing the consensus estimate of $2.21 by $1.77. The miss was driven by the higher credit provisions and a $1.3 billion charge for notable items, which dwarfed the $0.44 EPS. Management noted that the one‑off charges were “material” but expected to be absorbed in future periods.
HSBC reaffirmed its 2026 return‑on‑tangible‑equity target of 17 % or better and raised its banking net interest income guidance to approximately $46 billion, up from the prior $45 billion range. The guidance lift signals confidence in an improving interest‑rate environment, while the company maintained its 2026 dividend payout target of 50 % of EPS.
The bank’s simplification program, launched in early 2025, remains on track for completion by mid‑2026, with expected savings offsetting operating‑expense growth. Segment analysis shows wealth‑management fee growth and banking NII as key revenue drivers, while operating expenses rose 8 % due to inflation and technology investment.
Market reaction was muted, with investors focusing on the higher credit provisions and notable‑item charges that weighed on earnings, despite the revenue beat and guidance upgrade. The results underscore HSBC’s resilience but highlight ongoing credit‑risk headwinds that could affect near‑term profitability.
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