In this news, we discuss the HSBC third-quarter profit tumbles 35% as bad loan provisions rise.
HONG KONG / LONDON (Reuters) – HSBC Holdings PLC HSBA.L posted a 35% drop in quarterly profit, better than expected as higher loan loss provisions on economic fallout from the coronavirus pandemic were mitigated by reducing expenses.
Reported pre-tax profit of Europe’s largest bank by assets was $ 3.1 billion for the quarter ended September 30, up from $ 4.8 billion in the same period a year earlier .
Profit was above the average of $ 2.07 billion analysts’ estimates compiled by the bank.
While economic conditions improved in some markets in the third quarter with the lifting of lockdowns and forbearance measures helping businesses and consumers alike, global banks’ provisions remained high as they assessed the impact of the crisis. pandemic.
Asia-focused HSBC said it expected bad debt losses to be in the lower end of the $ 8 billion to $ 13 billion range set earlier this year.
Faced with fewer options to drive revenue growth, HSBC has sought to cut costs globally and in June resumed plans to cut around 35,000 jobs it had shelved after the coronavirus epidemic.
Reporting by Sumeet Chatterjee in Hong Kong and Lawrence White in London; Edited by Edwina Gibbs
Original © Thomson Reuters