SINGAPORE/LONDON -HSBC Holdings announced a 27% drop in its quarterly profit Tuesday. The Asia-focused bank was hit by lower revenues and slower growth in Hong Kong.

The largest European bank, with $130 billion market capital posted $4.2 billion pretax profit for March’s first quarter, up from $5.78 billion last year.

Results were higher than that of the average estimate of 16 analysts for $3.72 trillion, which was compiled by HSBC.

London-based Bank said that its expected credit loss stood at $600million compared to the previous quarter, when it had $400 million in reserves. The outlook was better and the bank unlocked the remaining $400 million.

According to the report, “Increased ECL principally reflected the direct economic and wider economic effects of the Russia-Ukraine War and inflationary pressures upon the future economic outlook.”

Asia makes up about half of the bank’s pretax profit.