# FTSE 100 banks are facing £2.5bn of headwinds – HSBC and Barclays are in the firing line.

*fintech · news · 2026-05-06 · City A.M.*

## Key points

- The FTSE 100's Big Five banks faced a £2.5bn sector-wide hit from economic risks in Q1.
- Big Five banks set aside £601m specifically for potential loan losses due to the Iran conflict.
- Barclays downgraded its 2026 growth forecast to 1% and flagged deteriorating macro assumptions.
- Barclays and HSBC suffered direct losses from the MFS private credit collapse, totaling over £550m.

**Companies:** HSBC, Barclays, Standard Chartered, Natwest, Lloyds
**Countries:** United Kingdom, Iran

[Read the full story on City A.M.](https://www.cityam.com/hsbc-barclays-natwest-lloyds-banks-profit-ftse-100-private-credit-iran/)

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