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HSBC To Ramps Up Asia Pivot As Pandemic Hammers Profits

HSBC pledged to accelerate Asia’s pivoting despite rising tensions between China and the West after reporting a 30% plunge in 2020 profits due to a coronavirus pandemic on Tuesday ..

Reported profit after tax was $ 6.1 billion, with banks primarily blaming unexpected credit losses and other bad debts.

Fourth-quarter profits halved to $ 2.2 billion, surpassing estimates as lenders held costs down as part of a major restructuring that had already begun.

The result comes when HSBC announces a new strategy that presents plans to accelerate attempts to capture more Asian markets, the region of the world where Europe’s largest lenders are making the most of their profits. it was done.

The strategy will allow banks headquartered in London to invest approximately $ 6 billion to strengthen their operations across Asia, with a particular focus on targeting wealth management in increasingly wealthy regions. ..





HSBC will refocus on Asia as part of a strategic review.
AFP / ISAAC LAWRENCE

Banks specifically mentioned markets in Southeast Asia such as Singapore, China and Hong Kong.

“We plan to invest in the areas where we are strongest,” CEO Noel Quinn said in a statement.

The slowdown in the global economy caused by the virus has hit financial giants hard.

However, HSBC has more headaches. That is, geopolitical tensions are rising through its position as a major business conduit between China and the West.

HSBC accounts for 90% of profits in Asia, with China and Hong Kong being the main drivers of growth.

As a result, it is more than most others in itself, especially against crossfires caused by the increasingly frayed relations between China and Western nations, especially after Beijing imposed strict security laws on Hong Kong last year. Turned out to be vulnerable.



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