HSBC’s net profit falls 35% in 2020

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HSBC's net profit falls 35% in 2020




Multiple people wearing masks walk past an HSBC bank logo on September 21, 2020 in Hong Kong


© Isaac Lawrence
Multiple people wearing masks walk past an HSBC bank logo on September 21, 2020 in Hong Kong


The banking giant HSBC announced on Tuesday that its net profit fell 35% in 2020 and promised to accelerate its reorientation towards the Asian market, despite tensions between China and the United States, in a context marked by the pandemic.

Annual net profit was $ 3.9 billion, up from $ 5.9 billion a year ago, a setback partly due to higher-than-expected credit losses and depreciation expenses.

“The pandemic inevitably affected our financial performance in 2020,” said the group’s president, Mark E Tucker.

“The stoppage of most of the world economy in the first half of the year caused a sharp increase in credit losses and the drops in interest rates reduced the volume of business in sectors sensitive to the evolution of interest.”

These results come when the banking giant, which has always had one foot in Europe and the other in Asia, has chosen to strengthen its presence in Asia.

The bank has decided to cut 35,000 jobs and reduce its size in the United States and Europe.

“We intend to focus more on the areas where we are strongest, increase and accelerate our investments, and continue to make progress in transforming our underperforming sectors,” the statement reaffirmed Tuesday.

The bank mentioned its markets in Southeast Asia, as well as Singapore, China, Hong Kong and the Middle East.

HSBC makes 90% of its profits in Asia, where both China and Hong Kong are crucial markets.

jac / ybl / erl

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