A prominent indicator of HSBC's liquidity risk worsened over the first quarter, as the UK bank posted a fall in high-quality liquid assets while projecting a higher level of cash outflows.

The lender's liquidity coverage ratio – calculated by dividing its stock of HQLA by estimated net cash outflows in a period of stress – dropped to 143% at end-March, down from 154% at end-December. The ratio is now at its lowest point since end-2017.