Business & Economy

HSBC’s first-half YoY net profits fall 77%

Beijing, Aug 3 (efe-epa).- HSBC bank, the largest in Europe, reduced its net profits in the first half of the year by 76.8 percent year-on-year, to $1,9 billion dollars, the entity reported Monday.

In the income statement for the January-June period, published Monday on the bank’s website, HSBC indicated that the entity’s performance was impacted “by the COVID-19 pandemic, the fall in interest rates, an increase of geopolitical risk and increased levels of market volatility.”

“Tensions between China and the United States inevitably create challenging situations for an organization with the presence of HSBC,” group Executive Director Noel Quinn said in a statement.

Until June, turnover fell 9 percent, to 26,7 billion dollars.

In the geographical breakdown, HSBC focuses on pre-tax profits, which in its main market in Asia totaled $7.4 billion.

Total profit before taxes fell 65 percent year-on-year to $4,318 million.

Regarding the solvency ratio, “Tier 1” – basic own resources – stood at 15 percent at the end of June.

Operating expenses during the first semester were 16,5 billion dollars, 4 percent less than in the same period of 2019.

In addition, the HSBC statement warned of challenges for the company for the remaining half year and even 2021, “partly due to the scope of the potential impact of new waves of coronavirus, the path to the development of a vaccine and the levels of market and consumer confidence.”

“An intensified geopolitical risk could also impact some of our markets, such as Hong Kong or the United Kingdom,” the text added. EFE-EPA


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