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Reported International Wealth, Premier Banking Revenues Rise At HSBC In Q1 2026
Tom Burroughes
5 May 2026
International wealth and premier banking revenues at , on a reported basis, stood at $3.749 billion in the third quarter of 2026, rising from $3.511 billion a year before, with pre-tax profit up to $1.231 billion from $1.188 billion, it said today. Reports said the credit impairment charge was unexpectedly high, with part of the cost (about $400 million) stemming from the collapse of UK mortgage lender Market Financial Solutions, as well as rising market risks. "HSBC isn’t just leaning on higher rates, with customer activity and its Asian wealth franchise doing more of the heavy lifting. The upgrade to full-year net interest income guidance marries what we saw from peers last week, giving investors some comfort that the income engine still has fuel in the tank," he continued. "The problem was underlying top-line strength got eaten up before it reached the bottom line. Credit losses were heavier than expected, including a fraud-related charge in the UK and extra caution around the Middle East outlook, while costs also ran above consensus as performance pay, inflation and technology spend bit into profits. That left reported profit a touch light, even though underlying returns remained robust and capital landed exactly where expected. For investors, this was a typically messy quarter: the core franchise looks healthy, but HSBC still needs to prove it can keep a lid on costs and impairments if the market is going to give full credit for that stronger revenue base," Britzman added.
In constant currency terms, the pre-tax profit for this division was $1.231 billion, rising from $1.228 billion, the UK/Hong Kong-listed group said.
The lender said it logged a total of $39 billion in net new money in the quarter at the IWPB business, of which the lion’s share – $34 billion – was in Asia. Total wealth balances were $1.57 trillion, of which Asia accounted for $1.068 trillion, it said.
Group results
HSBC said that across all its business lines, on a reported basis, pre-tax profit in the first quarter was $9.376 billion, down from $9.484 billion in the same three-month period of 2025. Net operating income, before change in expected credit losses and other credit impairments was $18.624 billion, rising from $17.649 billion.
Total operating costs rose to $8.721 billion from $8.012 billion; expected credit losses and other credit impairment charges widened to $1.3 billion from $876 million. Return on average tangible equity, excluding notable items, was 18.7 per cent, up from 18.4 per cent.
Looking ahead, HSBC said it expected to log banking net operating income of about $46 billion this year, up slightly from its previous guidance, reflecting an improved interest rate outlook, although cautioning about the volatile and uncertain outlook. HSBC said it expected costs to rise 3 per cent year-on-year, driven by higher variable pay accrual phasing based on business performance. For 2026, it expects costs to rise about 1 per cent on a target basis. For this year, 2027 and 2028, the bank is targeting a return on tangible equity of 17 per cent or higher.
The bank had a Common Equity Tier 1 ratio of 14 per cent at the end of March, down from 14.7 per cent a year earlier.
Since the start of January, shares in HSBC have risen 13.6 per cent. Today, shares were down more than 5 per cent as of 11 am UK time.
“HSBC’s first quarter was better than the headline numbers suggest. Revenue came in ahead of expectations once the noise from disposals is stripped out, helped by a strong showing in Wealth and solid fee income, while net interest income was broadly where the market expected," Matt Britzman, senior equity analyst, Hargreaves Lansdown, said in a note.