HSBC Holdings Pretax Profit Plummeted in 1st Half
August 26 2020 - 12:32PM
Dow Jones News
By Adriano Marchese
HSBC Holdings PLC said Wednesday that pretax profit fell
significantly in the first half of 2020, and that it will
accelerate its transformation program to mitigate costs.
For the six months ended June 30, the lender said pretax profit
fell to $4.32 billion, compared with $12.41 billion in the first
half of 2019.
Net profit attributable to shareholders fell to $1.98 billion
from $8.51 billion.
Reported revenue also fell to $26.75 billion from $29.37
million. Meanwhile, the company said that lending decreased by $18
billion, on a reported basis. However, on a constant currency
basis, lending increased by $12 billion, which it said reflects
corporate customers drawing on existing and new credit lines and
re-depositing these to increase cash balances in the first quarter
of 2020.
Looking ahead to the full year, HSBC Holdings said that it
continues to face a wide range of potential economic outcomes in
the second half of the year, and into 2021, in part dependent on
the extent of a second wave in the pandemic.
It noted that lower global interest rates and reduced customer
activity have put an increasing amount of pressure on its
revenue.
To mitigate these pressures on revenue, the lender said it
intends to accelerate its transformation program and take
additional cost saving measures.
HSBC Holdings also said it is reviewing its future dividend
policy as it monitors the implication of current global uncertainty
on its business plan and medium financial targets.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
August 26, 2020 12:17 ET (16:17 GMT)
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