London Daily

Focus on the big picture.
Saturday, Jul 04, 2026

HSBC’s profits plunged 51% last quarter as the coronavirus pandemic battered the bank

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. The bank also warned of further income declines if the coronavirus crisis persists.
HSBC’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.

Here are the key numbers:

Revenue: $13.33 billion versus the $13.41 billion estimate

Earnings per share: $0.10 versus the $0.12 estimate

“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,” CEO Noel Quinn said in the earnings release.

HSBC also warned of further pain if the coronavirus crisis persists.

“Should the Covid-19 outbreak continue to cause disruption to economic activity globally through 2020, there could be further adverse impacts on our income due to lower lending and transaction volumes and lower wealth and insurance manufacturing revenue due to equity markets volatility,” the bank said.

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.
Newsletter

Related Articles

0:00
0:00
Close
UK Government Consults International Partners on Maritime Trade Security and Energy Market Stability
Rare Revolutionary-Era Documents Discovered by UK Archives and Undergoing Authentication
UK Consumer Confidence Remains Deep in Negative Territory as Household Spending Stays Cautious
Transport for London Warns of Severe Disruption as Major Events Converge in Central London
NHS and Social Care Sectors Face Ongoing Recruitment Shortages Amid Persistent Workforce Gaps
Rising Energy Costs Drive Price Pressures Across UK Retail and Service Sectors
Competition and Markets Authority Expands Review of Artificial Intelligence Impact on UK Media Markets
UK Parliamentary Committees Intensify Scrutiny of National Security and Industrial Policy Legislation
Bank of England Faces Persistent Inflation Pressure as Rate Cut Expectations Fade
UK Public Finances Under Pressure as Borrowing Exceeds Forecast and Debt Nears 95% of GDP
Major Police Deployment Across Central London as Mass Demonstrations and Pride Parade Converge
Large-Scale Police Dispersal Powers Activated in Liverpool Ahead of Anti-Immigration Protests and Counter-Demonstrations
Luxury bags take over the World Cup: style, status symbol, or just showing off?
National Productivity Institute Highlights Weak Business Investment Outside Southern England
UK High Court Orders Reassessment of Environmental Impact in Major Highway Project
UK Cyber Security Centre Warns of Rising Threat From State-Sponsored Digital Espionage
UK Education Secretary Launches National Reform of Apprenticeships and Vocational Training
Financial Conduct Authority Tightens Climate Risk Disclosure Requirements for Listed Firms
Rail Union Suspends Planned Strike Action to Enter Formal Negotiations With Operators
Northern Ireland Businesses Seek Clarity Over Post-Brexit Trade Rules
Welsh Government Launches Regional Growth Plan Targeting Transport and Digital Infrastructure
North Sea Wind Sector Attracts £5 Billion Investment Amid Expansion of Offshore Capacity
Scotland and UK Governments Establish New Framework for Coordinated Investment in Energy and Infrastructure
UK Government Launches Major Immigration and Border Policy Overhaul Review
Bank of England Signals Interest Rates to Remain Elevated Despite Easing Inflation Pressures
National Health Service Warns of Severe Winter Capacity Strain Across Hospital Trusts
Chancellor Orders Urgent Treasury Review Amid Concerns Over Structural Public Finance Gap
Prime Minister Unveils Sweeping Legislative Programme Focused on Housing, Health Service Reform and State Energy Plan
UK Parliamentary Committee Launches Inquiry Into Falling Primary School Rolls and Public Service Impact
UK House of Lords Debates Electoral Commission Powers and Political Finance Reform
UK Parliament Considers Expanding Carbon Rules to International Aviation and Shipping Emissions
UK Traffic Commissioner Revokes Hampshire Haulage Operator Licence Over Regulatory Failures
UK Parliament Examines Risks in Public Contracts Awarded to Technology Firm Palantir
UK Competition Watchdog Moves Toward More Flexible Merger Rules to Support Efficiency and Growth
UK Government Seeks Approval for £1.15 Trillion Public Spending Plan Amid Scrutiny Over Department Budgets
UK Parliament Debates Sweeping National Security and Steel Industry Nationalisation Bills
UK Government Issues Formal Apology for Historic Forced Adoption Practices and Announces £4 Million Support Scheme
UK DEFENCE AND TECHNOLOGY STRATEGY TILTS TOWARD SOVEREIGN CAPABILITY AND INDUSTRIAL INVESTMENT
UK ECONOMIC POLICY OUTLOOK SHAPED BY LEADERSHIP TRANSITION AND FISCAL SIGNALS
STERLING STRENGTHENS AMID SHIFTING MONETARY OUTLOOK AND GLOBAL LABOUR MARKET SIGNALS
UK HPV VACCINATION PROGRAM NEARLY ELIMINATES CERVICAL CANCER DEATH RISK IN YOUNG WOMEN
UK EXPANDS PRISON SAFETY REVIEW AS GOVERNMENT SEEKS WIDER SYSTEM REFORM
UK DRIVES DIGITAL ASSETS STRATEGY WITH NEW STABLECOIN REGULATORY MODEL
UK TO EXPAND AI INFRASTRUCTURE THROUGH NEW EUROPEAN TECHNOLOGY PARTNERSHIP
UK LAUNCHES £15 BILLION DEFENCE TECH SHIFT TOWARD ADVANCED MILITARY SYSTEMS
CIVIL SERVICE FACES SHIFT IN POWER STRUCTURE AS REGIONAL GOVERNANCE PLANS EXPAND
WHITEHALL CONSIDERS MAJOR DECENTRALISATION PLAN WITH SECOND GOVERNMENT HUB IN MANCHESTER
UK TARGETS SERVICES EXPORT GROWTH IN TRADE TALKS WITH CHINA AMID GEOPOLITICAL TENSIONS
POLICE WATCHDOG PROBES OFFICERS OVER HANDCUFFING OF DYING TEENAGER IN HAMPSHIRE CASE
UK REGULATORS UNVEIL DUAL OVERSIGHT FRAMEWORK FOR STABLECOINS AND DIGITAL ASSETS
×