The company attributed the decline in profits to the impact of the Covid-19 pandemic, trade tensions between the US and China, Brexit, and low-interest rates
HSBC has reported a profit after tax of $6.09bn for the year ended 31 December 2020, a 30% decrease compared to $8.70bn for the previous year.
The banking firm reported a profit before tax of $8.77bn for the full year 2020, a 34% decline compared to $13.34bn for the year ended 31 December 2019.
The company reported a revenue of $50.42bn for the full year 2020, a decrease of 10% compared to $56.09bn for the full year 2019.
The company attributed the decline in profits to the impact of the Covid-19 pandemic, trade tensions between the US and China, Brexit, low-interest rates and rapid technological development.
HSBC group chief executive Noel Quinn said: “In 2020, our people delivered an exceptional level of support for our customers in very tough circumstances, while our strong balance sheet and liquidity gave reassurance to those who rely on us.
“We achieved this while delivering a solid financial performance in the context of the pandemic, particularly in Asia, and laying firm foundations for our future growth. I am proud of everything our people achieved and grateful for the loyalty of our customers during a very turbulent year.
“The growth plans we are announcing today aim to establish HSBC as a dynamic, efficient and agile global bank with a digital-first mindset, capable of providing a world-leading service to our customers and strong returns for our investors. We intend to deliver them at pace.”
HSBC to exit from the US retail banking business
HSBC intends to completely withdraw from the retail banking business in the US, after failing to improve the performance of its North America business, the Financial Times reported.
The company reported a Common equity tier 1 (CET1) ratio of 15.9% for the year 2020, a rise of 1.2% points compared to 14.7% for the year ended 31 December 2019.
The bank has agreed to pay an interim dividend of $0.15 per ordinary share in cash, after considering the requirements set out in the UK Prudential Regulation Authority (PRA)’s temporary approach to shareholder distributions for the year 2020.