HSBC's Net Profit Plunged 35% in 2020 as Pandemic Wreaked Economic Havoc
By Martin Mou
HSBC Holdings PLC's net profit fell sharply in 2020 as the
coronavirus ravaged the global economy, causing expected credit
losses to surge and interest rates to drop.
Net profit slid 35% to $3.9 billion from $5.97 billion, while
revenue dropped 10% to $50.43 billion, the London-based bank with
Asian roots said Tuesday.
However, the lender swung to net profit for the fourth quarter
from the year-ago period, when a goodwill impairment led to a heavy
loss. Net profit for the quarter ended Dec. 31 came in at $562
million compared with a net loss of $5.51 billion a year
A FactSet poll of analysts had tipped a net loss of $115 million
for the quarter.
HSBC plans to further lower its costs, targeting an adjusted
cost base of $31 billion or less in 2022.
Meanwhile, the bank no longer expects to reach its target for
return on average tangible equity at between 10% and 12% in 2022.
It now seeks to achieve a return ratio of greater than or equal to
10% in the medium term.
HSBC declared an interim dividend for the year of $0.15 per
Write to Martin Mou at email@example.com
(END) Dow Jones Newswires
February 22, 2021 23:56 ET (04:56 GMT)
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