(Pooja Dubey, Intern Journalist) HSBC pre-tax profit declined 65 percent in the first half of this year amid the coronavirus epidemic. The bank reported a pre-tax profit of $ 4.3 billion in January-June 2020. The bank reported a pre-tax profit of $ 12.4 billion in the same half a year ago.
HSBC said that “This year it has provisioned $ 8-13 billion for bad loans. This has been done because more people and companies can default in loan payments in the midst of the coronavirus epidemic.”
The bank has also been affected by the low-interest environment. The bank’s profit margin on the loan decreased due to low interest. The lower the interest, the less benefit the bank.
HSBC is the largest bank in Europe. It is headquartered in London. But Hong Kong, the financial hub of Asia, contributes more than 50 percent of its profits.
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