The Wealth and Personal Banking (WPB) of HSBC has posted a 65% slump in pre-tax profit in H1 2020 due to rise in adjusted ECL and lower adjusted revenue.

WPB was created through the consolidation of the bank’s retail banking, wealth management, and global private banking units.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Key WPB metrics

Adjusted profit before tax at WPB in the first six months of 2020 stood at $1.69bn, compared with last year’s figure of $3.99bn.

The unit’s half-yearly net operating income of $11.25bn was 13% lower than the previous year.

In Wealth Management, revenue declined 20% to $3.61bn.

Reduced performance related pay accrual and discretionary expenses resulted in a 3% decrease in WPB’s adjusted operating expenses to $7.35bn from $7.55bn. This offset the impact of digital and wealth investments.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Global Private Banking revenue remained flat at $921m. This occurred as lower interest rates on deposit revenue offset higher investment revenue due to volatile market conditions and a rise in fees from advisory and discretionary mandates.

Investment distribution revenue dipped 6% on a year-on-year basis, driven by Hong Kong’s adverse market conditions leading to reduced mutual fund sales.

Covid-19 dents HSBC performance in H1 2020

At a group level, HSBC’s reported pre-tax profit plunged 65% to $4.32bn from $12.41bn as it upped its loan loss provisions due to the Covid-19 crisis.

The banking group’s reported revenue decreased 9% to $26.74bn from $29.37bn.

HSBC group CEO Noel Quinn said: “Our first half performance was impacted by the Covid-19 pandemic, falling interest rates, increased geopolitical risk and heightened levels of market volatility.

“Despite this, our Asia franchise showed resilience, and our Global Markets business delivered strong growth compared with last year’s first half.”