Business

HSBC boss says bank underperforming in Europe, US as profits slip

HONG KONG: HSBC's interim chief executive on Monday (Oct 28) said the banking giant was underperforming in parts of Europe and the United States, as third-quarter profits slipped and the lender warned of further headwinds.

The Asia-focused behemoth has been trying to lower costs as it faces the double uncertainties caused by the grinding US-China trade war and Britain's impending departure from the European Union.

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Noel Quinn, who took over as acting CEO after the shock ouster in August of John Flint, has overseen plans to axe some 4,000 jobs, primarily away from its more profitable businesses within the Greater China region.

"Parts of our business, especially Asia, held up well in a challenging environment in the third quarter," Quinn said in a statement attached to the bank's latest results.

"However, in some parts, performance was not acceptable, principally business activities within continental Europe, the non-ring-fenced bank in the UK, and the US," he added.

The results statement gave no concrete details of what further restructuring may be down the line and said investors would be updated before February 2020, when the full 2019 results are released.

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But Quinn hinted at more pain ahead in the coming months.

"Our previous plans are no longer sufficient to improve performance for these businesses, given the softer outlook for revenue growth," he said.

"We are therefore accelerating plans to remodel them, and move capital into higher growth and return opportunities."

Pre-tax profit slipped 18 percent on-year to US$4.8 billion in July-September with the vast majority –Read More – Source

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