British lending major HSBC Holdings Plc (HSBC,HSBA.L,0005.HK) reported Tuesday lower pre-tax profit in first quarter, while net profit increased from last year, amid higher revenues. Further, the firm raised banking net interest income or NII outlook for fiscal 2026.
In Hong Kong, the shares were losing around 1.4 percent, trading at HK$141.400.
In the first quarter, profit before tax was $9.38 billion, lower than $9.48 billion last year, reflecting higher expected credit losses and other credit impairment charges, among others.
Profit attributable to ordinary shareholders of the parent company edged up to $6.938 billion from $6.932 billion a year earlier. Earnings per share increased to $0.40 from $0.39 in the prior year.
Adjusted basic earnings per share were $0.44, compared to $0.39 last year.
Revenue increased 6 percent from last year to $18.6 billion, primarily reflecting strong growth in Wealth fees and other income in International Wealth and Premier Banking and Hong Kong business segments, supported by higher customer activity.
Net interest income grew 8 percent to $8.95 billion from last year's $8.30 billion. Net interest margin of 1.60 percent was 1 basis points higher compared with prior year.
Further, the Board has approved a first interim dividend for 2026 of $0.10 per share, payable on June 26 to holders of record on May 15.
Looking ahead for fiscal 2026, the company now expects banking NII of around $46 billion, higher than previous view of at least $45 billion, reflecting an improved interest rate outlook, while recognising the outlook remains volatile and uncertain.
Amid the conflict in the Middle East, and due to higher oil prices, rising inflation, a material slowdown in GDP, rising unemployment and market disruption, the company said it could expect a mid-to-high single digit percentage adverse impact on profit before tax.
The company continues to expect a RoTE of 17 percent or better for 2026, 2027 and 2028, excluding notable items.
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