HSBC Q4 Results: Strategy and Target Refinements as Low Interest Rate Pressure Persists
HSBC Holdings plc (HSBC or the Group) reported net attributable profit of USD 562 million in Q4 2020, compared to a loss of USD 5,509 million in Q4 2019 and a profit of USD 1.4 billion in Q3 2020. For the full year 2020, net attributable profit was USD 3,898 million, down circa 35% on 2019, affected by lower revenues and higher loan impairment charges driven by the COVID pandemic. Results in Q4 2020 benefitted from lower one-off items including a large goodwill impairment (USD 7.3 billion) that affected Q4 2019 results. However, Q4 2020 results showed weakness in revenues (down 14% Year-on-Year (YoY)), following on the trend seen in previous quarters, as a result of the ongoing low interest rate pressure on net interest income.HSBC Holdings is a financial services holding company. Through its subsidiaries, Co. operates four businesses: Retail Banking and Wealth Management, which serves customers through four businesses: Retail Banking, Wealth Management, Asset Management, and Insurance; Commercial Banking, which provides working capital, term loans, payment services, and international trade facilitation; Global Banking and Markets, which delivers a range of transaction banking, financing, advisory, capital markets, and risk management services; and Global Private Banking, which provides a range of private banking services. At Dec 31 2017, Co. had total assets of US$2.52 trillion and deposits of US$69.92 trillion.
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