HSBC (HKG:0005) expects to incur a pre-tax loss of between $1.2 billion and $1.6 billion from the Bank of Communications' (HKG:3328, SHA:601328) issuance of up to 120 billion yuan in shares.

The loss will not have any material impact on HSBC's capital ratios, the British lender said in its first-quarter earnings release Tuesday.

Upon completion of BoCom's share issuance launched March 30, the British lender's stake in BoCom will decrease to 16% from 19.03%, HSBC said.