HSBC profits halved by covid-19 fallout as loan provisions soar

clock • 2 min read

HSBC this morning reported a fall of 48% in its 1Q worldwide profits, with the bank posting pre-tax profits of $3.2bn, and warning of "potentially signficant" credit losses due to the fallout from the covid-19 lockdowns. At the same time, private banking profits surged by 23% YoY. The London-based bank, Europe's biggest bank by assets, set aside $3bn to cover potential loan losses in 1Q2020, a 400% increase from the $585m in provisions ring-fenced in 1Q2019. However, compared to its North American rivals, the bank's figures suggest it is in a strong position to weather the storm. Last...

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Author spotlight

Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.