HSBC warns of ‘difficult’ outlook as revenue falls

Pedestrians are seen walking past a branch of HSBC bank in Causeway BayPicture copyright
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HSBC stated the financial institution’s efficiency in components of Europe and the US was “not acceptable” because it posted a drop in third quarter revenue.


Europe’s largest financial institution stated revenue earlier than tax fell 18% to $four.8bn (£three.8bn) within the three months to September, lacking analyst estimates.

In an announcement, the financial institution additionally warned of a “difficult” surroundings forward.


HSBC has been navigating uncertainty arising from Brexit, the US-China commerce struggle and ongoing unrest in Hong Kong.

Shares fell 2.7% in Hong Kong buying and selling after the earnings launch.

Noel Quinn, who took over as HSBC’s appearing chief government after the shock departure of John Flint in August, praised the efficiency in Asia however criticised different areas.

The financial institution makes most of its income in Asia.

“Elements of our enterprise, particularly Asia, held up nicely in a difficult surroundings within the third quarter,” stated Mr Quinn.

“Nonetheless, in some components, efficiency was not acceptable, principally enterprise actions inside continental Europe, the non-ring-fenced financial institution within the UK, and the US.”

Mr Quinn stated earlier plans to enhance the efficiency of those companies have been “not ample” and that they’re “accelerating plans to rework them”.

The financial institution additionally stated the income surroundings was “more difficult” than within the first half of the yr, and predicted “softer” income progress than beforehand anticipated.

It additionally warned of “important fees” within the fourth quarter – together with associated to restructuring – if the backdrop worsened additional.

Asia efficiency

Whereas HSBC warned earlier this yr that income can be hit by a slowdown in China, the broader area was worthwhile for the financial institution within the third quarter.

The financial institution stated revenue earlier than tax in Asia rose four% to $four.7bn within the interval, citing “resilience” in Hong Kong.

It follows months of unrest within the territory which have raised issues in regards to the influence on the financial system and the repute of the Asian monetary hub.

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