HSBC reported a dip in first-quarter profits as higher credit impairments, including charges related to the Middle East conflict, weighed on earnings. Pre-tax profits fell to $9.4bn, down $100mn from the same period last year and below analyst expectations of nearly $9.6bn.

Revenue performance told a different story. The bank generated $18.6bn in Q1 revenues, climbing 6% year-on-year and beating forecasts. Growth came primarily from wealth management and insurance operations in Hong Kong, HSBC's key "second home market."

Chief executive Georges Elhedery emphasized that customers turn to the bank more in uncertain times. HSBC confirmed it remains on track to deliver $1.5bn in annual cost savings six months ahead of schedule and expressed confidence in meeting February targets.

Despite the profit miss, HSBC shares have surged more than 13% this year, significantly outperforming rivals Standard Chartered and Barclays. Hong Kong-listed shares slipped 1.4% on Tuesday.