on Tuesday signalled it would embark on a pandemic-induced overhaul of its business model, seeking to flip its main source of income from interest rate to fee-based businesses.
The planned business model changes mark one of the biggest shifts in strategy to date from HSBC, which has long touted its ability to generate interest income from its more than $1.5 trillion in customer deposits. “We will have to look at charging for basic banking services in some markets, because a large number of our customers in this environment will be losing us money,” Chief Financial Officer Ewen Stevenson told Reuters.“It will need to be done carefully to not damage the trust of the brand or get customers to switch, especially in countries where competitors offer the service for no charge,” said Sudeepto Mukherjee, senior vice president, financial services, at consulting firm Publicis Sapient.
Its 35% slide in pretax profit to $3.1 billion beat a consensus estimate of $2.07 billion as HSBC flagged an easing in bad loan provisions. “There are encouraging signs that the credit assumptions we have got are holding up, the government support we are seeing for the corporate sector has bought them time,” Stevenson told investors on a conference call.Faced with fewer options to bolster revenue growth, Asia-focused HSBC has been looking to reduce costs globally and in June resumed plans to cut around 35,000 jobs it had put on ice after the coronavirus outbreak.
Maybe they should try honest business and money laundering.
Didnt wells fargo restructure itself somehow also
Higher transaction cost incomingggg.....
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