HSBC boosts bad loan provisions, sees second quarter profit plunge as coronavirus crushes global business activity
HSBC warned it could take provisions of up to US$13 billion for expected credit losses this year as coronavirus pandemic weighed on economic activity
Pre-tax profit
was US$1.09 billion, well below a consensus estimate of US$2.46 billion and about a sixth of the US$6.19 billion it reported a year ago
South China Morning Post
HSBC Faces Larger Loans Losses that Could Hit $13 Billion
Posted on 08/03/2020
HSBC Holdings PLC
disclosed that its bad debt charges will go further than the previous estimate to US$ 13 billion this year.
HSBC reported a pre-tax profit of US$ 4.32 billion for the first six months of 2020.
HSBC’s revenues fell 9% in the six-month period.
HSBC’s employee headcount has fallen by approximately 4,000 this year.
Bad debt charge estimates
went from a US$ 7 billion to US$ 11 billion estimate to US$ 8 billion to US$ 13 billion estimate.
SWFI
https://www.swfinstitute.org/news/80811/hsbc-faces-larger-loans-losses-that-could-hit-13-billion