HSBC Holdings plc experienced a 4% decline in profits during the first quarter of 2025, reporting $9.4 billion in earnings, down $100 million from the previous year. This decrease is attributed to a $1.3 billion charge resulting from fraud in the private credit sector and the ongoing US-Israel war on Iran, which specifically impacted the bank's exposure by $300 million. Despite the profit drop, HSBC's revenue rose by 6% to reach $18.6 billion. The bank's Chief Financial Officer, Pam Kaur, highlighted that the fraud-related charge of $400 million was linked to an unnamed private equity group and emphasized the bank's cautious approach towards private credit risks. Following the announcement, HSBC's shares fell more than 5%, marking it as the largest loser on the FTSE 100 index on Tuesday morning. Kaur reassured stakeholders that the bank's total exposure to the private credit sector, valued at $6 billion, is relatively small compared to its overall balance sheet of $1 trillion.