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HSBC profits halved by coronavirus pandemic impact

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HSBC says its first quarter profits have nearly halved because of the impact of the coronavirus pandemic.

Pre-tax benefit for the primary 3 months of the yr got here in at $3.2bn (£2.6bn), down from $6.2bn a yr in the past.

The financial institution larger its expectancies of unhealthy loans to $3bn because of the fallout from Covid-19 and as oil costs droop.

Earlier this yr HSBC mentioned it could awl round 35,000 jobs as a part of a significant cost-cutting plan.

The London-headquartered financial institution warned that the unfavorable impact of the pandemic at the world economic system would imply an building up within the collection of unhealthy loans.

It additionally mentioned that there can be sustained drive at the financial institution’s profits as buyer job falls and decrease central financial institution rates of interest hit profitability.

The financial institution additionally highlighted “a significant charge related to a corporate exposure in Singapore”.

In February HSBC mentioned it could cut back its headcount from 235,000 to about 200,000 over the following 3 years.

The transfer is a part of the a restructuring programme because it goals $4.5bn of charge cuts by 2022.

Last week the financial institution mentioned it was once pushing forward with the ones restructuring plans however had halted task cuts to keep away from disruption and leaving body of workers not able to seek out paintings in different places because of the coronavirus outbreak.

Separately, in a observe to staff previous this month HSBC’s leader government Noel Quinn mentioned he would donate 1 / 4 of his base wage for the following six months to charity, which goes out at £160,000. He is not going to take his annual money bonus, which might had been as much as £1.2m.

Chief monetary officer Ewen Stevenson mentioned he would do the similar, donating £93,000 and forgoing £706,000, whilst chairman Mark Tucker will donate his whole 2020 rate to charity, about £1.5m.

It got here as senior executives and board participants at different main UK banks, together with RBS and Lloyds, agreed to surrender their bonuses for this yr.

The bulletins have been in line with calls from the Bank of England to limit bonuses.

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