A pedestrian walks past an illuminated sign for HSBC Holdings Plc, which is displayed in front of a bank branch in the central district of Hong Kong, China.
Anthony Kwan | Bloomberg | Getty Images
HSBC reported Monday pre-tax profit declined 65% year over year to $ 4.3 billion in the first half of 2020 – in line with analyst expectations.
The bank's reported revenue decreased 9% to $ 26.7 billion over the same period, slightly above analysts' forecasts.
CEO Noel Quinn said in a statement on earnings release that the bank was "affected by the Covid 19 pandemic, falling interest rates, increased geopolitical risk and increased market volatility."
He also mentioned tensions between the United States and China as a challenge that the bank must face in the long term.
"The current tensions between China and the United States inevitably lead to challenging situations for an organization with HSBC presence," he added.
HSBC's reported pre-tax profit is expected to be $ 5.69 billion in the first half of 2020 – or less than half of the $ 12.41 billion reported a year ago, the bank estimates. Sales for the six months were expected to be approximately $ 26.41 billion, approximately 10% less than last year [$ 29.37 billion].
Shares listed in Hong Kong and London have fallen more than 40% this year, according to refinitive data.
Quinn also said that the bank would "accelerate" the implementation of a proposed restructuring that he announced in February. The former CEO said the restructuring would include merging his Retail Banking and Wealth Management businesses, reducing European equity business, and reducing the US branch network.
The plan, which would lead to the loss of around 35,000 jobs, was announced by HSBC in February.
The bank's financial results announcement follows that of other UK banks, many of which reported a drop in earnings. The British bank Standard Chartered, which is also focused on Asia, reported Thursday earnings in the first half of the year down 33% to $ 1.63 billion.
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