HSBC shifts focus from west to east as profits dive

HSBC shifts focus from west to east as profits dive

By Justin HarperBusiness reporter, BBC News

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HSBC has signalled its "pivot to Asia", outlining plans to invest about $6bn (£4.3bn) in the region.

It is targeting wealth management and commercial banking to drive "double-digit growth" and has singled out Asian markets such as Singapore, China and Hong Kong.

The strategy update came as HSBC reported a 34% drop in profits for 2020 partly due to the impact from Covid-19.

The UK-based bank already generates the bulk of its revenues from Asia.

During its results announcement, Europe's biggest bank said it would resume paying a dividend of $0.15 a share in cash, the first payout announced since October 2019.

HSBC's pre-tax profit fell to $8.8bn for the year ending 31 December, down from $13.35bn a year earlier.

While annual profits slumped by slightly more than one third, they are marginally better than analysts expected.

HSBC chief executive Noel Quinn said in a statement that the bank had a "solid financial performance in the context of the pandemic - particularly in Asia", which lays "firm foundations for our future growth".

Sticking to cost-cutting plans that will reduce its workforce by about 35,000, HSBC is pushing ahead with one of the banking industry's most drastic responses to the pandemic.

Analysts