HSBC: profit down due to doubtful loans

(CercleFinance.com) - On Tuesday the British bank HSBC announced that its Q1 net profit had fallen, due to charges and impairments linked to the war in Ukraine and rising inflation.


The group this morning published quarterly taxable profit that is down 20% y-o-y to 3.4 billion dollars (against 4.6 billion dollars a year ago), based on net banking income of 12 .5 billion dollars, compared with nearly 13 billion dollars a year ago.

HSBC said it had recorded bad debt charges of 600 million dollars in Q1, compared to 400 million dollars in Q1 2021.

The establishment explains that this amount reflects the impact - direct and indirect - of the Russian-Ukrainian conflict as well as the effect of inflationary pressures on the economic outlook.

However, despite everything, HSBC says that its outlook remains favourable, judging that its bad debts are set to "normalise" in the coming months.

The bank still expects around 5% growth in its net banking income this year.

All said, HSBC shares are down 2% in early trading in London, underperforming the FTSE 100, which is up 0.8% at the same time.


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