Business & Economy

HSBC’s reported profit fell by 34.7 percent in 2020

Beijing, Feb 23 (efe-epa).- British bank HSBC announced Tuesday that its reported profit attributable to ordinary shareholders fell 34.7 percent in 2020 to $3.9 billion.

“In 2020, HSBC had a very clear mandate – to provide stability in a highly unstable environment for our customers, communities and colleagues,” Group Chief Executive Noel Quinn said in the bank’s annual report posted on its website.

“I believe we achieved that in spite of the many challenges presented by the Covid-19 pandemic and heightened geopolitical uncertainty.”

The largest bank in Europe’s profit-before tax was $8.8 billion in 2020, a decline of 34.24 percent over the previous year.

Meanwhile, revenue dropped to $50.4 billion from the $56.1 billion the bank recorded in 2019.

Quinn thanked customers for their “loyalty” “during a very turbulent year” and said the bank aims to “establish HSBC as a dynamic, efficient and agile global bank with a digital-first mindset, capable of providing a world-leading service to our customers and strong returns for our investors.”

Group Chairman Mark E. Tucker said that Covid-19 infection levels remained very high in Europe, the United States and Latin America and that despite the optimism surrounding the deployment of vaccines, “there is clearly still some way to go before life can return to something like normality. Recovery will therefore take longer in these economies, with growth more likely later in 2021 in these economies.”

“Given the external environment, it is vital we stay focused on what we can control,” added Tucker who acknowledged the “good progress” the bank made in “reallocating capital from underperforming parts of the business, reducing costs and simplifying the organization.”

Common equity tier 1 capital ratio was 15.9 percent in 2020, an increase over the 14.7 percent of the previous year.

Loans to customers in 2020 stood at $1.037 trillion, increasing marginally by 0.12 percent over the $1.036 billion granted the previous year.

Deposits rose by 14.11 percent to $1.64 trillion from $1.44 trillion in 2019.

The bank indicated that the value of customer accounts in Hong Kong accounted for 32 percent of the total, followed by those in the United Kingdom (30 percent), the rest of Asia (11 percent), North America (11 percent), Europe (8 percent), Mainland China (3 percent), the Middle East and North Africa (3 percent) and Latin America (2 percent).

The bank will pay a dividend per ordinary share of $0.15. EFE-EPA

jco/pd/tw

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