US, WASHINGTON (ORDO NEWS) — The results of one of the largest financial conglomerates in the world, the British HSBC, turned out to be much worse than expected in the first quarter of this year: profit fell by 48%.
The bank explains the worsening situation by the fact that the coronavirus pandemic hit borrowers around the world, which led to a sharp increase in bad debts.
The largest bank in Europe in terms of assets reported profit before tax for January-March in the amount of $ 3.21 billion. A year ago, the figure was at $ 6.21 billion. Analysts had expected profits to drop to $ 3.67 billion.
HSBC noted that they are actively implementing a program drawn up in February: the bank moves capital from inefficient assets, reduces costs, and optimizes staffing. Moreover, as notes Reuters, the bank was able to suspend massive staff cuts.
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