HSBC Q3 profit tumbles 35% as bad loan provisions rise
[HONG KONG] HSBC Holdings posted a 35 per cent drop in quarterly profit, better than expected, as higher loan loss provisions on the economic fallout from the coronavirus pandemic were cushioned by the reining in of expenses.
Reported pretax profit for Europe's biggest bank by assets came in at US$3.1 billion for the quarter ended Sept 30, down from US$4.8 billion in the same period a year earlier.
The profit was higher than the US$2.07 billion average of analysts' estimates compiled by the bank.
While economic conditions improved in some markets in the third quarter as lockdowns were lifted and forbearance measures helped businesses and consumers, global banks' provisions have remained high as they assess the impact of the pandemic.
Asia-focused HSBC said it expected losses from bad loans to be at the lower end of the US$8 billion to US$13 billion range it set out earlier this year.
Faced with fewer options to bolster revenue growth, HSBC has been looking to reduce costs globally and in June resumed plans to cut around 35,000 jobs it had put on ice after the coronavirus outbreak.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance
HSBC asked by US$890 billion investor group to set energy goal
Barclays is the latest firm to face anti-ESG wrath in Oklahoma
Barclays prices mortgage-backed notes in deal with GoldenTree
TD risks an earnings hit from US laundering probe, analysts say