Reuters
HSBC reported a 67% drop in earnings before tax at the time of the 2020 quarter, COVID-19 and an era of geopolitical weight for the lender.
The British bank reported a tax-tax profit of $1.1 billion, 67 percent less than the $3.2 billion it made in the first quarter of 2020.
Noel Quinn, Managing Director of HSBC, said: “Our functionality in the first part of the year affected by the COVID-19 pandemic, lower interest rates, increased geopolitical threat and higher degrees of market volatility.”
Here are the key figures:
The bank said it also “accelerates” a so-called transformation program announced in February this year, resulting in the loss of thousands of jobs.
After postponing parts of our transformation program in reaction to the Covid-19 outbreak, we now intend to drive the implementation of the plans we announced in February. We are also in the additional steps we want to take in the new economic environment. to make HSBC a more powerful and sustainable business,” Quinn said.
HSBC said in its earnings statement: “We are following those plans anywhere we can. We have already begun to mix our wholesale operations and consolidate our retail, wealth control and personal banking activities into a global company: wealth and personnel. Banking”.
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The British lender also said geopolitical tensions were over the bank.
“Tensions between China and the United States inevitably create difficult conditions for an organization with HSBC’s footprint. We will face all the demanding political conditions that will be maintained by focusing on the long-term wishes of our clients and the interests of our investors. HSBC said.
HSBC shares fell four at four: 12 a.m. ET.