Bank warns of challenges
HSBC flags softer outlook as profits fail to hit targets
Hong Kong focused HSBC is cutting jobs
HSBC said it is forecasting softer revenue growth after reporting a steeper than expected an 18% drop in pre-tax profit during the third quarter to £3.8 billion (2018: £4.6bn).
Europe’s largest bank warned that it faced numerous challenges including the escalating trade war between China and the United States, an easing monetary policy cycle, unrest in its key Hong Kong market, and Brexit.
Shares in the Hong Kong-listed company fell more than 2%.
The London-headquartered bank has already flagged thousands of job cuts and said it would rebalance capital from low-return businesses and adjust its cost base.
Noel Quinn, HSBC’s interim chief executive, said: “Parts of our business, especially Asia, held up well in a challenging environment in the third quarter.
“However, in some parts, performance was not acceptable, principally business activities within continental Europe, the non-ring-fenced bank in the UK, and the US.”
Mr Quinn said previous plans to improve the performance of these businesses were “no longer sufficient” and that they would be “accelerating plans to remodel them