HSBC Holdings 2019 Net Profit Plunges 53%
February 18 2020 - 12:09AM
Dow Jones News
By Yifan Wang
HSBC Holdings PLC's 2019 net profit plunged 53% due to a
substantial amount of goodwill impairment, the bank said Tuesday,
as it plans to introduce a slew of measures to cut down costs and
restructure the company.
Net profit for the year was $5.97 billion, compared with $12.61
billion in 2018, the bank said in a stock exchange filing.
Revenue edged up 4.3% to $56.10 billion, it added.
HSBC notched a goodwill impairment of $7.3 billion for 2019,
primarily related to global banking and markets, and European
commercial banking.
For the fourth quarter, the bank swung to a loss of $5.51
billion.
HSBC said it plans to reduce its gross risk-weighted asset by
$100 billion in the next two years, as well as trim its sales and
research coverage in Europe and exit G-10 long-term derivative
market making in the U.K.
The bank said it will consolidate select fixed income activity
in London to maximize global scale and reduce U.S. global markets
risk-weighted assets by $5 billion.
HSBC added that it plans to suspend share buybacks for 2020 and
2021, due to the high level of restructuring expected to be
undertaken over the next two years.
"To achieve our targets, we expect to incur restructuring costs
of around $6 billion and asset disposal costs of around $1.2
billion during the period to 2022, with the majority of
restructuring costs incurred in 2020 and 2021," HSBC said.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
February 17, 2020 23:54 ET (04:54 GMT)
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