HSBC quarterly profit misses estimates as credit losses rise

HSBC reported firstquarter pretax profit of $9.4 billion, slightly below analyst expectations, as higher expected credit losses and other impairment charges weighed on results. Revenue rose 6% from a year earlier to $18.62 billion, helped by stronger wealth fees and other income, while net interest income also increased. The bank said expected credit losses reached $1.3 billion, reflecting a larger charge than a year ago and costs tied to fraudrelated exposure and a weaker economic outlook. HSBC also flagged risks from the conflict in the Middle East, which could affect profits if oil prices rise and growth slows. The lender said it remains on track for cost reductions and kept its returnontangibleequity target at 17%, while approving a first interim dividend of 10 cents per share.