# London-headquartered bank said profits fell 4% in the first three months of the year.

*fintech · news · 2026-05-05 · The Guardian*

## Key points

- HSBC took a $1.3bn charge for potential loan losses in Q1, including $300m from Middle East conflict.
- The bank disclosed a $400m fraud-linked loss related to secondary securitisation exposure in UK private credit.
- HSBC's $6bn private credit exposure is small relative to its $1tn balance sheet, per CFO Kaur.
- HSBC is increasing due diligence after realizing secondary exposure to private credit fraud risks.
- HSBC shares fell over 5%, making it the FTSE 100's biggest loser on Tuesday morning.

**Companies:** HSBC
**Countries:** UK, US, Iran

[Read the full story on The Guardian](https://www.theguardian.com/business/2026/may/05/hsbc-profits-fall-fraud-related-charge-iran-war)

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