HSBC Holdings reported largely flat first-quarter net profit as the London-based bank faced headwinds from increased credit charges that offset strength in key business segments. The bank's shares declined following the results, which fell short of analyst estimates for pre-tax profit due to higher expected credit losses.

The bank attributed the increased credit provisions to conditions related to the Middle East conflict, which weighed on overall performance despite positive contributions from its operations in Hong Kong, the United Kingdom, and wealth management businesses.

Meanwhile, Italian banking group UniCredit delivered stronger results, lifting its full-year profit guidance after posting solid first-quarter performance. The bank benefited from revenue growth of 4.9% compared to the same period last year, prompting management to raise expectations for the remainder of 2024.

The contrasting results highlight divergent trends among major European banks, with some facing pressure from geopolitical uncertainties while others capitalize on favorable market conditions. HSBC's performance reflects the challenges facing international banks with significant exposure to volatile regions, while UniCredit's upgrade demonstrates resilience in the Italian banking sector.

Both banks released their quarterly results as the banking industry navigates an environment of shifting interest rates, geopolitical tensions, and varying regional economic conditions that continue to influence lending activities and credit risk assessments.