HSBC first-quarter profit halved by coronavirus
The bank increased its expectations of bad loans to $3 billion
Stocks impacted: HSBC Holdings plc (HSBA)
HSBC Holdings PLC’s profit slid 48% year-over-year to $3.23 billion in the first quarter. Revenue dropped by 5.1% from a year ago to $13.69 billion. Citing the “impact of Covid-19 and weakening oil prices on the forward economic outlook”, the lender increased its expected credit impairment charges by $2.4 billion to $3 billion. As for other details, net interest margin was at 1.54% — lower than 1.59% a year ago, basic earnings per share was 9 cents, lower than 21 cents in Q1 2019, while operating expenses were down 4.5% from a year ago. As a reminder, HSBC said it would axe around 35,000 jobs as part of a major cost-cutting plan earlier this year.
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