HSBC's Losses on Bad Loans Concern Investors, AJ Bell's Mould Says -- Market Talk

Dow Jones05-05 23:18

1517 GMT - HSBC investors are focusing on an increase in costs related to bad loans and gloomier forecasts due to the U.S.-Iran war, AJ Bell's Russ Mould writes. The primary reason for soured investor sentiment is a $400 million hit from loans linked to alleged fraud in private markets in the U.K., Mould says. Sources linked the charge to collapsed lender Market Financial Solutions, The Wall Street Journal reported. The unexpected losses neutralize the boost provided by better-than-expected net interest income, Mould says. Moreover, the lack of new dividend or buyback announcements has left investors with little incentive to buy shares. HSBC shares fall 6.8% in London. (julia.nasser@wsj.com)

 

(END) Dow Jones Newswires

May 05, 2026 11:18 ET (15:18 GMT)

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