Image Source: Dennis Sylvester Hurd
Chloe Shakesby

HSBC profits drop by 65 per cent as it accelerates job cutting plan

A UK bank has today reported that its profit dropped by 65 per cent in the first half of 2020.

HSBC, which is headquartered in London, saw profits of $3.3bn, down from 2019’s $12.4bn.

The bank said that the figures are the result of the coronavirus pandemic, as well as “heightened” levels of market volatility and falling interest rates.

It also reported today that it intends to accelerate its transformation plan, which was announced in February and put on hold during the pandemic, and “execute additional cost actions”.

The transformation plan will see 35,000 jobs lost worldwide, bringing HSBC’s headcount to 200,000.

Noel Quinn, group chief executive, commented: “Our first half performance was impacted by the Covid-19 pandemic, falling interest rates, increased geopolitical risk and heightened levels of market volatility.

“Despite this, our Asia franchise showed resilience, and our global markets business delivered strong growth compared with last year’s first half.

“Having paused parts of our transformation programme in response to the Covid-19 outbreak, we now intend to accelerate implementation of the plans we announced in February.

“We are also looking at what additional actions we need to take in light of the new economic environment to make HSBC a stronger and more sustainable business.

“Current tensions between China and the US inevitably create challenging situations for an organisation with HSBC’s footprint. We will face any political challenges that arise with a focus on the long-term needs of our customers and the best interests of our investors.”

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