(Sharecast News) - HSBC interim profits plunged 65% as it increased provisions for bad debts by $3.8b amid the coronavirus crisis.
The Asian-Anglo bank set aside $3.8bn to cover potential loan losses in the three months to June from $555m a year ago, more than the $2.7bn estimated in company-compiled analyst forecasts.
Full-year loan losses could be $8bn - $13bn, HSBC said, "given the deterioration in consensus economic forecasts and actual loss experience" during the second quarter.
Pre-tax profits fell to $4.3bn, compared to $12.4bn for the same period a year ago.
Chief executive Noel Quinn said the first half performance was impacted by the Covid-19 pandemic, falling interest rates, increased geopolitical risk and heightened levels of market volatility.
"Current tensions between China and the US inevitably create challenging situations for an organisation with HSBC's footprint. We will face any political challenges that arise with a focus on the long-term needs of our customers and the best interests of our investors," he said
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