HSBC beats estimates, reporting a 36% year-over-year decline in pre-tax revenue for the third quarter
Pedestrians in protective masks walk past a logo displayed in an HSBC bank branch in the central district of Hong Kong.
Roy Liu | Bloomberg | Getty Images
SINGAPORE – HSBC, Europe's largest bank by assets, on Tuesday reported a 36% year-over-year decline in third-quarter pre-tax profit to $ 3.1 billion in the third quarter to recover from the economic shock of the coronavirus pandemic.
Analysts had expected the bank's third-quarter pre-tax profit to be around $ 2.07 billion, according to the bank's estimates. In the third quarter of last year, the bank posted pre-tax profits of $ 4.84 billion.
Prior to the release of the results, Jackson Wong, asset management director at Amber Hill Capital, said HSBC's outlook could improve if Covid-19 cases around the world don't worsen significantly.
"I think the worst could probably be over," he told CNBC's "Squawk Box Asia" on Tuesday.
"We didn't see a very bright future at this point so it could get better (at the beginning) but it's not very robust at this point," he added.
HSBC is traditionally preferred by investors for its steady dividend payout. But the bank stopped paying dividends when UK regulators asked commercial lenders to raise capital.
The bank's Hong Kong-listed stocks are down 47% since Friday this year, while London-listed stocks are down 45.7% over the same period, data from Refinitiv showed.
HSBC's financial results follow those of other European banks, many of which have exceeded analysts' expectations.
Last week, UK lender Barclays reported third-quarter net income more than double what analysts had forecast as the bank allocated less money to potentially bad loans.
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