REUTERS - Reuters

HSBC Reports Surprise $400 Million Loss, Shares Drop 6% HSBC reported a surprise $400 million loss linked to the collapse of Market Financial Solutions, causing its shares to drop 6%. The loss is tied to HSBC's lending to Atlas SP and financing of MFS, amid fraud allegations. This incident highlights concerns over banks' exposure to the $3.5 trillion private credit industry. HSBC's first-quarter profit was $9.4 billion, slightly below the $9.6 billion forecast. The bank's credit loss provisions reached $1.3 billion, partly due to the U.S.-Israeli conflict. HSBC revised its 2026 credit charge outlook to 45 basis points due to uncertainty.