Q1 Revenue Reaches $18.6B, Pre-Tax Profit Drops to $9.4B

Reports Q1 revenue $18.6B vs. $17.6B last year. Reported profit before tax of $9.4B decreased by $0.1B compared with 1Q25. The decrease reflected higher expected credit losses and other credit impairment charges in 1Q26, an adverse impact from notable items and a rise in operating expenses. This was partly offset by revenue growth from strong Wealth fee and other income, as well as higher banking net interest income. Profit after tax of $7.4B was $0.2B lower than in 1Q25. In 1Q26, notable items included a disposal loss on classification to held for sale of $0.3B associated with the planned sale of the business in Malta, and losses of $0.2B from the recycling of foreign currency translation reserves following the completion of the sale of the UK life insurance business. In 1Q25, notable items included $0.1B of fair value losses on American Depositary Receipts received as part of the sale consideration for our business in Argentina. Constant currency profit before tax excluding notable items was $10.1B, broadly stable compared with 1Q25. Revenue growth, driven by a strong performance in Wealth and higher banking NII, was broadly offset by higher ECL and operating expense growth. Annualised return on average tangible equity in 1Q26 was 17.3%, compared with 17.9% in 1Q25. Excluding notable items,annualised RoTE in 1Q26 was 18.7%, a rise of 0.3 percentage points compared with 1Q25. Net interest margin of 1.60% was 1 basis points higher compared with 1Q25. NIM was 4bps lower compared with 4Q25, primarily reflecting the impact of a one-off item in 1Q26. Common equity tier 1 capital ratio of 14.0% decreased by 0.9 percentage points compared with 4Q25, reflecting the impact of the privatisation of Hang Seng Bank, dividends and an increase in risk-weighted assets, partly offset by regulatory profit.