HSBC Announces Revenue Drop in 2020

HSBC Announces Revenue Drop in 2020

An announcement by the major bank HSBC Holdings revealed that the company has experienced a sharp decline in 2020 revenue. The bank’s financial statements indicate that the enterprise reached a total revenue of $50.4 billion in the year 2020. This is a 10 percent drop from the previous 2019.  The profit before tax was estimated at $8.8 billion, while with tax, the bank’s current 2020 profit is $6.1 billion. Compared to 2019, the reported profit is down an astounding 34%.

The growth for Q4 2020 experienced a 12% decline compared to the parallel period of 2019. HSBC Holdings blames the low-interest rate circumstances for the decline in revenue and profit.

Group Chief Executive Noel Quinn commented on the results that despite the difficulty 2020, the employees of the bank delivered an exceptional level of service to customers. Quinn also focused the reader’s attention on the liquidity performance and balance sheet. Despite the epidemic, Quinn commented that “We achieved this while delivering a solid financial performance in the context of the pandemic particularly in Asia and laying firm foundations for our future growth”.

The challenges of 2020 nevertheless did not stop HSBC’s deposits to grow by $204 billion! Furthermore, the bank also saw an increase in revenue in all global businesses. The giant is currently optimistic about 2021, which is obvious by its positive January numbers.

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