The London-based lender said Tuesday that revenue fell 11% in the third quarter compared to the same period the year before. Pre-tax profit dropped 36% year-on-year to $3.1 billion.
The company offered an update on those plans Tuesday, saying that the remodel of its units in the United States and Europe were on track. But it now expects to trim more costs and shed more assets than originally outlined.
The bank has also realized a need to “adapt our business model to a protracted low interest rate environment,” Quinn said in a statement.
“We are accelerating the transformation of the group, moving our focus from interest-rate sensitive business lines towards fee-generating businesses, and further reducing our operating costs.”
“Any such dividend would be dependent on the economic outlook in early 2021, and be subject to regulatory consultation,” the bank said.
But it now plans to step up with even more investments in the region, particularly in China’s Greater Bay Area and South Asia. Areas of focus will include wealth management, trade finance, and sustainable finance, according to the bank.
HSBC shares listed in Hong Kong and London jumped 4.8% and 5.6%, respectively following the news on Tuesday.
“‘[The] Asian economy is rebounding strongly, led by a pick-up in manufacturing and trade,” the bank said in a presentation to investors. “HSBC’s client activity has [also] shown resilience into the third quarter.”
However, the bank conceded that its renewed focus in Asia could become a liability. It said that any “financial impact to the group of geopolitical risks in Asia is heightened due to the strategic importance of the region, and Hong Kong in particular, in terms of profitability and prospects for growth.”
HSBC’s stock has slumped in recent months as it contends with the need to reshape its business. The bank’s shares in London and Hong Kong are both down more than 40% so far this year.
— Julia Horowitz contributed to this report.