Credit impairment charges dragged HSBC profits lower in 2020 but it still managed to beat analyst estimates.
Pre-tax profits fell 34 percent at HSBC in 2020 due to higher expected credit losses and lower revenue, according to a statement from the bank. This includes a 10 percent drop in revenues to $50.4 billion, attributed to the impact of lower interest rates and a $1.3 billion asset impairment charge from software intangibles.
This beat profit forecasts of $8.3 billion, according to analyst estimates compiled by HSBC.
For the fourth quarter, it posted a 10 percent drop in revenues with a 50 percent drop in adjusted profit before tax to $2.2 billion.
The bank announced that it would be resuming dividend payments after a long pause since the fourth quarter of 2019.
This was a difficult decision and we deeply regret the impact it has had on our shareholders, said HSBC group chairman Mark Tucker.
We are therefore pleased to restart dividend payments at the earliest opportunity. The Board has announced an interim dividend of $0.15 for 2020, and adopted a policy designed to provide sustainable dividends in the future.
