HSBC Results Disappoint With Shock $400 Million MFS Charge

HSBC Holdings Plc reported profit that missed estimates, weighed down by an unexpected charge related to the collapse of UK mortgage lender Market Financial Solutions Ltd. and rising economic risks stemming from the conflict in the Middle East.

The London-based bank booked $1.3 billion in expected credit losses for the period. This was driven partly by a $400 million charge linked to what the bank described as a “fraud-related, secondary, securitization exposure with a financial sponsor in the UK.”