Business

HSBC's 2020 annual profit falls 34per cent, lowers profitability target

HSBC Holdings PLC on Tuesday reported 34per cent drop in annual profit, slightly better than expectations, after a year in which its global business took a hefty blow from the COVID-19 pandemic.

HSBC logo is seen on a branch bank in the financial district in New York
FILE PHOTO: HSBC logo is seen on a branch bank in the financial district in New York, U.S., August 7, 2019. REUTERS/Brendan McDermid
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HONG KONG/LONDON: HSBC Holdings PLC on Tuesday reported a 34per cent drop in annual profit, slightly better than expectations, after a year in which its global business took a hefty blow from the COVID-19 pandemic.

Europe's biggest bank by assets, which makes the bulk of its revenue in Asia, reported profit before tax of US$8.78 billion for 2020, down from US$13.35 billion a year earlier.

The profit was higher than the US$8.33 billion average of analysts' estimates compiled by the bank.

Underscoring the tough market conditions, HSBC abandoned its long-term profitability goal of achieving a return on tangible equity of 10 to 12per cent, and said instead it will target 10per cent over the medium term.

HSBC said it would pay a dividend of US$0.15 a share in cash, the first payout announced since October 2019, after the Bank of England blocked all big lenders from paying dividends or buying back shares in 2020 to conserve capital.

(Reporting by Alun John and Lawrence White; editing by Shri Navaratnam)

Source: Reuters