Quarterly ResultMay 6, 2026, 06:09 AM
HSBC 1Q26 Revenue $18.6B, RoTE 18.7%; Raises 2026 Banking NII Outlook
AI Summary
HSBC Holdings plc reported a 1Q26 profit before tax of $9.4bn, a slight decrease from 1Q25, primarily due to higher expected credit losses and operating expenses, partly offset by revenue growth. Revenue increased 6% to $18.6bn, driven by strong Wealth fees and banking net interest income, with annualized RoTE (excluding notable items) rising to 18.7%. The company raised its 2026 banking NII guidance to around $46bn but also increased its 2026 ECL charge guidance to around 45bps, reflecting ongoing uncertainty. The Board approved a first interim dividend of $0.10 per share.
Key Highlights
- Reported profit before tax was $9.4bn, a decrease of $0.1bn compared to 1Q25.
- Revenue increased by 6% to $18.6bn, driven by strong Wealth fees and banking NII.
- Annualized Return on Average Tangible Equity (RoTE) excluding notable items rose to 18.7% from 18.4% in 1Q25.
- Increased 2026 banking Net Interest Income (NII) guidance to around $46bn from at least $45bn.
- Increased 2026 Expected Credit Losses (ECL) charge guidance to around 45bps from around 40bps.
- The Board approved a first interim dividend for 2026 of $0.10 per share.
- Customer lending balances increased by $20.1bn on a constant currency basis compared to 4Q25.
- Common Equity Tier 1 (CET1) capital ratio decreased to 14.0% from 14.9% in 4Q25.