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HSBC cut profit and revenue and warned of write-offs

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Kuldeep Singh
Kuldeep is a Journalist and Writer at Revyuh.com. He writes about topics such as Apps, how to, tips and tricks, social network and covers the latest story from the ground. He stands in front of and behind the camera, creates creative product images and much more. Always ready to review new products. Email: kuldeep (at) revyuh (dot) com

The British bank HSBC reduced quarterly profits and revenue due to a “deteriorating market environment” and warned of possible “substantial write-offs” in the IV quarter.

The bank’s net profit in July-September amounted to $ 2.97 billion against $ 3.9 billion a year earlier. Analysts polled by FactSet expected the figure to be $ 3.96 billion.

HSBC’s quarterly revenue decreased by 3.2% on an annualized basis to $ 13.36 billion. The bank attributed this to lower activity of clients of the division engaged in operations in global capital markets.

Pre-tax profit, excluding one-time factors, decreased by 12% to $ 5.35 billion. In the global banking and Markets division of banking services, the indicator fell by 30% to $ 1.24 billion in retail banking and asset management (Retail Banking and Wealth Management) – by 18%, up to $ 1.7 billion.

HSBC’s net interest income last quarter fell 1.4% to $ 7.57 billion.

HSBC abandoned the goal of increasing the rate of return on material capital (RoTE) to 11% by the end of 2020 and worsened the forecast for revenue growth due to the fact that market conditions were worse than forecasts, the report said. In the third quarter, RoTE was 6.4%.

“We will take measures to redistribute capital from the low-income business and adjust the cost base in accordance with these measures,” the HSBC press release said. subsequent periods, including possible write-offs of goodwill and additional restructuring costs. “

HSBC Acting General Director Noel Quinn noted good performance in the Asian part of the bank’s business but said it was unacceptable in continental Europe, as well as some of the bank’s operations in the UK and the USA.

“We believe that our previous plan for improving the performance of these units is no longer sufficient, given the worsening forecast for profit growth. In this regard, we are accelerating the plan for their transformation, as well as the redistribution of capital in areas involving faster growth and higher profitability.” – said, Queen.

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