creditlosses News & Analysis
2 articles
Market Mood
HSBC (HSBC) Q1 Pre-Tax Profit at $9.4B Misses Estimates
HSBC (HSBC) reported a first-quarter pre-tax profit of $9.4 billion, missing analysts' estimates of $9.59 billion, while revenue rose 6% year-on-year to $18.62 billion, exceeding the expected $18.49 billion. The bank's shares dropped by 4.6% in Hong Kong and 5.2% in London following the announcement. Expected credit losses increased to $1.3 billion, $400 million higher than the previous year, primarily linked to economic uncertainties. HSBC plans a $1.5 billion annualized cost reduction by June 2026 and has set a target return on tangible equity of 17%, despite warning of potential negative impacts from the Middle East crisis.
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Goldman Sachs (GS) Surpasses EPS Estimates with $17.55 Result
Goldman Sachs (GS) reported earnings per share of $17.55 for Q1 2026, exceeding estimates by over $1, with total revenue of $17.23 billion, surpassing expectations by $260 million. However, the stock declined approximately 3.6% following the announcement due to lower-than-expected fixed-income trading revenues of $4 billion, which fell $900 million short of Wall Street estimates. Additionally, Goldman reported a credit loss provision of $315 million, more than double the anticipated $150 million, raising concerns about private credit. Equities trading revenue did outperform, hitting a record of $5.33 billion, exceeding expectations by roughly $420 million.
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