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(Sharecast News) - HSBC Holdings said it planned to move to a fee-based businesses model and consider paying a "conservative" dividend as it unveiled a less-than-expected 36% fall in third quarter profits.
Pre-tax profit for the three months to September 30 came in at $3.1bn, compared with a $2.07bn average of analysts' estimates compiled by the bank.
Losses from bad loans were forecast to be at the lower end of the $8bn - $13bn range set out earlier this year, HSBC said on Tuesday. Results were helped by loss provisions of just $800m in the quarter against analysts expectations of another $2bn to cover impairments.
"This latest guidance, which continues to be subject to a high degree of uncertainty due to Covid-19 and geopolitical tensions, assumes that the likelihood of further significant deterioration in the current economic outlook is low," the bank added.
"Based on our results for 2020 and our forecasts for 2021, the board will consider whether to pay a conservative dividend for 2020. Any such dividend would be dependent on the economic outlook in early 2021, and be subject to regulatory consultation."
HSBC in June resumed plans to cut around 35,000 jobs it had paused after the coronavirus outbreak.
17 Jan 2024 17:05
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