HSBC News | The largest European bank reduced its profit by 35% due to Covid-19 and Brexit

HSBC, the largest bank in Europe, has seen its net profit decrease due to the effect of the coronavirus pandemic by 34.7% in the last year to 3,898 million dollars (3,203 million euros). In the statement that it has made public, the entity points out how despite “the challenges presented by the Covid pandemic and the greater political uncertainty,” the bank managed to “support its liquidity needs, increased deposit balances and continued to invest. in technology to assist clients in exceptionally challenging conditions. “

The Profit before tax of the firm led by Noel Quinn was 8,777 million dollars (7,213 million euros), 34.24% lower than the previous year. Revenues in 2020 stood at 50,429 million dollars (41,445 million euros) compared to the 56,098 million dollars (46,088 million euros) that it managed to collect the previous year.

In the note sent in the last hours by the entity, Quinn himself, thanked his clients for their “loyalty to the group during a very turbulent year” and stressed that the bank has set itself the goal of developing a plan to make it “more dynamic, efficient and agile, with a digital priority.”

The president of HSBC, Mark E. TuckerHe added that Covid infections are still very high in Europe, the United States and Latin America and that, despite optimism about the arrival of vaccines, “there is still a long way to go before life can return to something similar to normalcy. Recovery will take longer in those economies. “

Thus, given the uncertainties, it is “vital that HSBC focus on what it can control,” Tucker said, adding that “the group is doing everything possible to reallocate capital from underperforming businesses, reduce costs and simplify the organization. “.

Will pay a dividend of 0.12 euros per share

Regarding the solvency ratio, Tier 1 -basic own resources- was from 15.1% in 2020, an increase compared to 14.7% in 2019. At the end of the year, the loans granted totaled 1,037 billion dollars (852,102 million euros) compared to 1,036 million dollars (851,281 million euros) the previous year, a 0.12% increase.

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Likewise, deposits raised increased by 14.11% to 1,642 trillion dollars (1,349 trillion euros) for the 1,439 billion dollars (1,182 billion euros) from the previous year. The bank indicated that the value of its clients’ accounts in Hong Kong amounted to 32% of the total, followed by those in the United Kingdom (30%), Asia (11%), North America (11%), Europe (8 %), Mainland China (3%), Middle East and North Africa (3%) and Latin America (2%). The entity has assured that it will pay a dividend of 0.15 dollars (0.12 euros) per common share in 2020.

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