Dado Ruvic | ReutersEurope’s largest lender HSBC on Tuesday reported first-quarter pre-tax profit of $9.4 billion, missing analysts’ estimates on the back of higher expected credit losses and other impairment charges.HSBC’s revenue gained 6%, year on year, exceeding estimates, on stronger wealth fees and other income.Here are HSBC’s first-quarter results compared with the consensus estimates compiled by the bank.Pre-tax profit: $9.37 billion vs. $9.59 billionRevenue: $18.62 billion vs. $18.49 billionThe lender, whose first-quarter profit before tax fell 1% year on year, saw shares in Hong Kong drop 4.6%.Expected credit losses of $1.3 billion were $400 million higher compared with the same period a year earlier — 9% worse than consensus estimates, according to a Citi report. The credit losses were linked to exposure to a financial sponsor in the UK and provisions owed to increased uncertainty and a worsening economic outlook due to the conflict in the Middle East, HSBC said in a statement. “I feel quite comfortable that at a $1.3 billion charge based on what we know today and the forward outlook we have of various downside plausible scenarios, we are well provided for,” HSBC Chief Financial Officer Pam Kaur told CNBC’s “Access Middle East” on Tuesday.HSBC said in its statement that it was on course to deliver $1.5 billion in annualized cost reduction by the end of June 2026. “Through the privatisation of Hang Seng Bank, we expect to realise $0.5bn in pre-tax revenue and cost synergies across both our brands in Hong Kong by the end of 2028.”The bank completed the privatization of Hang Seng Bank on Jan. 26, with the latter’s shares subsequently delisted from the Hong Kong Stock Exchange.HSBC’s net interest income rose 8% in the first quarter, year on year, to $8.9 billion, as did operating expenses, also up 8%, owing to the impacts of inflation, forex, higher planned spending and performance-related pay. The lender …
