Business Standard

HSBC to accelerate restructuring plan as Q3 profit tumbles 35% due to Covid

Reported pretax profit for Europe's biggest bank by assets came in at $3.1 billion for the quarter ended Sept. 30, down from $4.8 billion in the same period a year earlier

hsbc

Representative image

Reuters HONG KONG/LONDON

HONG KONG/LONDON (Reuters) - HSBC Holdings PLC posted a 35% drop in quarterly profit, better than expected, as higher loan loss provisions on the economic fallout from the coronavirus pandemic were cushioned by the reining in of expenses.

Reported pretax profit for Europe's biggest bank by assets came in at $3.1 billion for the quarter ended Sept. 30, down from $4.8 billion in the same period a year earlier.

Click here to connect with us on WhatsApp

The profit was higher than the $2.07 billion average of analysts' estimates compiled by the bank.

While economic conditions improved in some markets in the third quarter as lockdowns were lifted and forbearance measures helped businesses and consumers, global banks' provisions have remained high as they assess the impact of the pandemic.

 

Asia-focused HSBC said it expected losses from bad loans to be at the lower end of the $8 billion to $ 13 billion range it set out earlier this year.

Faced with fewer options to bolster revenue growth, HSBC has been looking to reduce costs globally and in June resumed plans to cut around 35,000 jobs it had put on ice after the coronavirus outbreak.

 

 

 

(Reporting by Sumeet Chatterjee in Hong Kong and Lawrence White in London; Editing by Edwina Gibbs)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 27 2020 | 10:06 AM IST

Explore News