HSBC's Q1 profit halved to $3.2b

Weakening oil prices hurt the bank.

HSBC’s profit before tax for January to March halved to $3.2b from $6.2b a year ago, below the average analyst forecast of $3.7b, reports Reuters.

The bank increased its expected credit impairment charges to $3b due to the pandemic, with provisions likely to range from $7b to $11b.

Weakening oil prices also impacted the quarterly result on the back of “a significant charge related to a corporate exposure in Singapore,” the report said. HSBC is amongst the leading creditors of Singaporean oil trader Hin Leong, which is currently under court-appointed supervision to restructure billions of debt.

The bank wants to minimise operating costs to mitigate the plunge in revenue, leading to “marginally lower” profitability in 2020 than last year.

Here’s more from Reuters.