Matt Haycox Daily Logo

HSBC profits plunge 69% due to pandemic and global tensions

HSBC announced today that its profits for the first half of 2020 dropped by 69 percent due to being hit by both the pandemic and an increase in tensions between the US and China.

Post-tax profit for the bank stood at US$3.1 billion with pre-tax profit of US$4.3 billion, and revenue declining by nine percent to US$26.7 billion.

CEO Noel Quinn described the period as among the “most challenging in living memory”.

He told the Hong Kong stock exchange “Our first-half performance was impacted by the COVID-19 pandemic, falling interest rates, increased geopolitical risk and heightened levels of market volatility.”

A total of 90 percent of HSBC’s profit comes from Asia, and much of that from China and Hong Kong. This has caused HSBC to attempt to walk a fine line between China and the West.

“Current tensions between China and the US inevitably create challenging situations for an organisation with HSBC’s footprint,” Quinn said, adding “however, the need for a bank capable of bridging the economies of East and West is acute, and we are well placed to fulfil this role.”

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on print
Share on email

Chancellor outlines Winter Economy Plan

As the country looks towards winter, Chancellor Rishi Sunak has today outlined government’s plan to protect jobs and support businesses over the coming months with a new Job Support Scheme and an extension of the Self Employment Income Support Scheme.

Read More »

Queen set to lose 300,000 of her subjects

The Queen is set to lose about 300,000 of her subjects— not to the dreaded coronavirus pandemic, but to the decision by the Caribbean island of Barbados to relinquish the crown and to become a republic next year.

Read More »