HSBC pre-tax profits plunge 48 per cent in 12 weeks
- HSBC on Tuesday said first-quarter pre-tax profits almost halved as the banking giant was battered by the global coronavirus pandemic while it embarked on a major restructuring.
- The lender reported pre-tax profits of $3.2 billion, down 48 per cent from the same period in 2019, citing credit losses from clients struck by the economic slowdown as a major cause.
- “The economic impact of the Covid-19 pandemic on our customers has been the main driver of the change in our financial performance since the turn of the year,” newly confirmed CEO Noel Quinn said in a statement.
Reported expected credit losses in the first quarter of the year were $3 billion — $2.4 billion more than the first quarter of 2019 and its biggest bad loan bundle in almost nine years.