HSBC Bank earnings: HSBC’s 2020 annual profit falls 34%, lowers profitability target

HONG KONG/LONDON: HSBC Holdings PLC on Tuesday reported a 34 per cent drop in annual revenue, barely higher than expectations, after a yr by which its world enterprise took a hefty blow from the COVID-19 pandemic.

Europe’s largest financial institution by property, which makes the majority of its income in Asia, reported revenue earlier than tax of $8.78 billion for 2020, down from $13.35 billion a yr earlier.

The revenue was larger than the $8.33 billion common of analysts’ estimates compiled by the financial institution.

Underscoring the robust market circumstances, HSBC deserted its long-term profitability purpose of attaining a return on tangible fairness of 10 to 12 per cent, and mentioned as an alternative it should goal 10 per cent over the medium time period.

HSBC mentioned it could pay a dividend of $0.15 a share in money, the primary payout introduced since October 2019, after the Financial institution of England blocked all large lenders from paying dividends or shopping for again shares in 2020 to preserve capital.

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