HSBC first-half profit plunges 65%, warns loan losses could hit $13 billion

HSBC Holdings PLC warned of rising bad debt charges and a falling core capital ratio after posting a higher-than-expected 65% tumble in first-half pre-tax profit as the coronavirus pandemic hit the bank’s business worldwide.

Europe’s biggest bank by assets reported on Monday a pre-tax profit of $4.32 billion for the first six months this year, lower than the $5.67 billion average of analysts’ estimates compiled by the bank.

HSBC increased its estimate of the total bad debt charges it could take this year to between $8 billion and $13 billion, as it reflected worse-than-expected actual losses in the second quarter and expectations of a steeper decline in the economy.