HSBC reported first-quarter pre-tax profit of $9.4 billion, slightly below analyst expectations of $9.59 billion, as higher credit losses weighed on earnings.

The profit was also marginally lower compared to $9.5 billion recorded in the same period last year.

However, the bank’s revenue rose 6% year-on-year to $18.6 billion, exceeding market forecasts of $18.49 billion, reflecting steady business performance.

HSBC said increased impairment charges and credit losses impacted overall profitability during the quarter.

The bank added that it remains on track to achieve its $1.5 billion cost reduction target by mid-2026 as part of its ongoing efficiency strategy.

HSBC also confirmed it completed the privatization of Hang Seng Bank on January 26, 2026, and expects to generate around $0.5 billion in cost and revenue synergies by 2028.