Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
HSBC reported a drop in third-quarter profit as the lower interest rate environment weighed on revenue.
For the quarter ended 30 September, pre-tax profit fell to $3.1 milliom from $4.8 million year-on-year as revenue plunged to $13.4 million from 42.7 million.
The company reported expected credit losses and other credit impairment charges of $0.8bn, down from $0.1bn seen in the second quarter, reflecting a stabilisation of the forward economic outlook, the company said.
The company said its decision on whether to pay a 'conservative' dividend for the year, would be based on its results for 2020 and forecasts for 2021.
Looking ahead, HSBC touted improved credit loss provisions, and said it would cut costs by more than expected.
The expected credit loss charge for 2020 was currently trending towards the lower end of the $8bn to $13bn range, while the 2022 annual cost base was expected to exceed its original $31bn target.
'This latest guidance, which continues to be subject to a high degree of uncertainty due to Covid-19 and geopolitical tensions, assumes that the likelihood of further significant deterioration in the current economic outlook is low, and that stage 3 impairments from now until the end of 2020 are broadly in line with the average quarterly charge for the year to date,' it added.