HSBC Delays 35,000 Job Cuts, Q1 Profit Down 48% to $3.2 Billion
Caproasia | 29th April 2020
HSBC will be delaying 35,000 planned job cuts and reported 48% decline in quarterly profit to $3.2 billion (EBITA) for Q1 2020 compared to Q1 2019, reflecting the impact of the COVID-19 outbreak and weakening oil prices.
” HSBC delays 35,000 job cuts, report 48% decline in Q1 profit to $3.2 billion “
HSBC Group Chief Executive Noel Quinn in its Q1 2020 earning release announced the economic impact of the COVID-19 pandemic on our customers has impacted HSBC’s financial performance and thus increase in provision for credit losses.
Financial performance (Q1 2020 vs Q1 2019)
- Reported profit before tax down 48% to $3.2 billion
- Reported revenue down 5% to $13.6 billion
- Net interest margin of 1.54%, down 5bps from 1.59% in 1Q19
- Reported Credit Impairment Charges increased by $2.4 billion to $3.0 billion
HSBC Group Chief Executive Noel Quinn:
“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. The resultant increase in expected credit losses in the first quarter contributed to a material fall in reported profit before tax compared with the same period last year.
HSBC has always been there for our customers in times of crisis, and we are working hard to support them during this unprecedented period of disruption. We do so from a position of strength, with robust levels of capital, funding and liquidity. The market-specific support measures that we are offering our personal and business customers have had strong take-up, and we remain responsive to their changing needs. We are also working closely with governments around the world to channel fiscal support to the real economy quickly and efficiently.
I take the well-being of our people extremely seriously. We have therefore paused the vast majority of redundancies related to the transformation we announced in February to reduce the uncertainty they are facing at this difficult time. We continue to press forward with the other areas of our transformation with the aim of delivering a stronger and leaner business that is better equipped to help our customers prosper in the recovery still to come.”
HSBC is one of the largest banking and financial services organisations in the world, with operations in 64 countries and territories, more than 40 million customers and 235,000 employees. HSBC has a total market capitalization of $105.38 billion (29th April 2020) and is listed in London, Hong Kong, New York, Paris and Bermuda.