HSBC said it would resume paying dividends and increase investment in Asia, despite announcing a 34% decline in annual profits after the global business was hit by a coronavirus pandemic.
Europe’s largest bank slightly exceeded analysts’ expectations in 2020, Pressure due to bad debt lossProfit before tax was $ 8.8 billion, down from $ 13.4 billion in the previous year.
It outlined plans to invest about $ 6 billion in fast-growing Asian markets, especially wealth management, and said it would expand “beyond Hong Kong.” Its largest market — Including mainland China and Singapore.
Adjusted profit for the fourth quarter was $ 2.2 billion, down 50% year-on-year, slightly above analysts’ estimate of $ 1.8 billion. Meanwhile, non-performing loan impairment costs increased $ 1.2 billion over the period to $ 8.8 billion. Pre-tax adjusted profit in 2020 was down 45% to $ 12.1 billion.
The bank announced on Tuesday that it would begin paying a dividend of $ 0.15 per share after the Bank of England banned it. Payment to shareholders It was partially lifted at the end of last year.
“We’re off to a good start until 2021, and we’re cautiously optimistic over the next year,” HSBC CEO Noel Quinn said in a statement.
Quinn and Mark Tucker are accelerating a radical overhaul of HSBC’s global operations to boost performance and regain skeptical investors who have been out of stock in recent years.
The bank Shift $ 100 Billion Capital to AsiaMoved a series of global business heads from UK headquarters to Hong Kong, Reduced 35,000 jobs in Europe And support plans to become a market leader in wealth management in the United States and Asia.that too Discuss to close The existence of retail banking in the United States.
HSBC this week Remodeling of executives Prior to the result. On Tuesday, it announced that it would replace Hong Kong Stock Exchange Chairman Laura Cha with the board of directors and resign in May.
“In 2020, we experienced an economies of scale and social upheaval that we don’t see in our living memories,” Tucker said. “The external environment was reshaped by a variety of factors, including the effects of trade friction between the United States and China, Brexit, low interest rates, and rapid technological development.”
“The spread of the Covid-19 virus has made the environment even more complex and difficult.”
HSBC shares surged 7% in Hong Kong on Tuesday. Inventories increased by almost 18% this year, but remain more than one-fifth lower than pre-pandemic levels in early 2020.
The HSBC was caught up in geopolitical tensions between the volatile Western and China lenders founded in Hong Kong.
it has been Severely criticized by British parliamentarians U.S. politicians over the approval of the controversial National Security Act that Beijing imposed on Hong Kong, and Close your account The number of democratic activists in the territory.
It was also accused by Chinese national media for providing information to U.S. prosecutors who led to the arrest. Top executive In the Chinese telecommunications group Huawei.
HSBC resumes dividends despite 34% decline in profits
Source link HSBC resumes dividends despite 34% decline in profits