HSBC profits down, will cut 35,000 jobsChristian Fernsby ▼ | February 18, 2020
HSBC reported loss before tax of $3.9bn, impacted by a goodwill impairment of $7.3bn and a $1.0bn UK bank levy charge.
HSBC Reported revenue up 5%
Adjusted profit before tax in Hong Kong up 3% to $2.6bn. Adjusted costs of $9.1bn, up 3% or $0.3bn, reflecting ongoing cost discipline.
Common equity tier 1 (‘CET1’) ratio improved by 40bps from 3Q19 to 14.7%, driven by risk weighted asset (‘RWA’) reductions of $22bn in 4Q19.
To achieve its targets, HSBC expects to incur restructuring costs of around $6bn and asset disposal costs of around $1.2bn during the period to 2022, with the majority of restructuring costs incurred in 2020 and 2021.
HSBC has said it will axe around 35,000 jobs. ■