HSBC's profits plunged 51% last quarter as the coronavirus pandemic battered the bank
HSBC posted first-quarter earnings on Tuesday that fell short of Wall Street forecasts.
The British bank's adjusted revenues slid 6%, and a surge in expected credit losses drove adjusted pre-tax profits down 51% to $3.0 billion.Visit Business Insider's homepage for more storiesHSBC's profits plunged in the first quarter as the coronavirus pandemic hammered the bulk of the British bank's operations. Overall, its earnings fell short of the expectations of Wall Street analysts polled by Bloomberg.
Adjusted revenues slid 6% to below $14 billion as the global equities sell-off and lower interest rates weighed on the wealth management business. HSBC's expected credit losses also surged to a nine-year high of $3 billion, fueling a 51% drop in adjusted pre-tax profits to $3.0 billion.
HSBC revealed sharp income declines in three divisions. Adjusted pre-tax profits tumbled 84% in the retail banking and wealth management division, 69% in the commercial banking business, and 49% in the global banking and markets segment. The bright spot was the corporate centre, where adjusted pre-tax profits more than tripled to $1.1 billion.
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