HSBC reveals 36% slide in profits

HSBC (LON: HSBA) has reported a 36% year-on-year drop in profits to $3.1bn (£2.4bn).

As profits fell for the three months to September, the lender warned that it could start charging customers for “basic banking services”.

“This latest guidance, which continues to be subject to a high degree of uncertainty due to Covid-19 and geopolitical tensions, assumes that the likelihood of further significant deterioration in the current economic outlook is low,” said HSBC.

Earlier this year, the lender scrapped its dividend for the first time in 74 years. The bank will release full-year figure in February.

HSBC has resumed plans to cut 35,000 global jobs. Chief executive, Noel Quinn, said in a memo to staff in June: “Since February we have pressed forward with some aspects of our transformation programme, but we now need to look to the long-term and move ahead with others, including reducing our costs. Against this backdrop, I am writing to let you know we now need to lift the pause on job losses.”

HSBC said that expected losses from bad loans are expected to be at the lower end of the $8bn to $13bn range it set out earlier this year.

“This latest guidance, which continues to be subject to a high degree of uncertainty due to Covid-19 and geopolitical tensions, assumes that the likelihood of further significant deterioration in the current economic outlook is low,” said the bank.

HSBC shares (LON: HSBA) are trading +5.65% at 337,40 (0912GMT).