HSBC Holdings PLC announced on Tuesday that it will accelerate its restricting plan, reducing cost further than previously suggested. The bank wants to overturn its model from generating income mainly from interest rates to fee-based business, and shrinking in size.
The announcement came after HSBC revealed its financial results with a 35% drop in quarterly profit and flagged an easing in its provisions for bad loans, citing an expected improvement in the economic outlook in its main markets.
For Europe’s biggest bank, pretax profit from assets was $3.1 billion for the quarter ended September 30, 2020, down from $4.8 billion in the same period in 2019. The profit was still higher than then estimates by the bank.
Asia-focused HSBC set out losses range from bad loan earlier this year to $8 billion to $13 billion. The banks said that due to COVID19, and other factors such as geopolitical tensions, there are very minor chances of any change in the current economic outlook.
The bank has only a few options left to increase its revenue and bank has been looking to reduce costs globally. In June the bank resumed its plan to slash 35,000 jobs which were deferred after the Covid-19 breakout.
On Monday, shares of HSBC Holdings plc (NYSE:HSBC) marked $20.73 per share versus a previous $20.88 closing price. With having a -0.72% loss, an insight into the fundamental values of HSBC Holdings plc, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts.
HSBC Holdings plc (HSBC) is based in the United Kingdom and it represents one of the well-known company operating with Financial sector.
If you wish to compare HSBC shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of for HSBC Holdings plc, while the value 21.82 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value -0.14 is supported by the yearly EPS growth of -53.20%.