HSBC shifts focus from west to east as profits dive

SourceBBC
SectorFinancial Services
CountryMiddle east

By Justin HarperBusiness reporter, BBC News image copyrightGetty Images 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...read more...