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Profits Rise At HSBC's Private Bank; Group Restructuring Delayed

Tom Burroughes

29 April 2020

HSBC’s global private banking arm logged adjusted profit of $121 million, against $98 million a year ago, while the retail banking and wealth arm fell to $611 million from $1.992 billion. 

Adjusted revenue increased by $60 million, ratio,” Noel Quinn, HSBC group CEO, said.  

On a reported basis, pre-tax profit in the first quarter of this year slumped by 48 per cent year-on-year to $3.2 billion from higher expected credit losses and other credit impairment charges and lower revenue.

The reduction primarily reflected the global impact of the pandemic and weakening oil prices, HSBC said. Reported revenue fell by 5 per cent due to adverse market impacts in life insurance manufacturing and adverse valuation adjustments in global banking and markets, offsetting a resilient revenue performance, notably in Asia, global markets, retail banking and global private banking.

"The economic impact of the COVID-19 pandemic on our customers has been the main driver of the change in our financial performance since the turn of the year. The resultant increase in expected credit losses in the first quarter contributed to a material fall in reported profit before tax compared with the same period last year,” Noel Quinn, group chief executive, said.