HSBC (HSBC) said on Monday that escalating tensions between China and the West are creating “challenging situations” for its business after the global bank reported a 65% plunge in profits in the first half of 2020 due to the coronavirus pandemic.
The London-based lender, which makes most of its money in Asia, said Monday that pre-tax profit in the first six months of the year fell 65% to $4.3 billion compared to the same time last year, as revenue fell, the coronavirus crisis hit and credit losses were worse than expected.
CEO Noel Quinn said US-China tensions had so far not had a material impact on earnings but he acknowledged that “current tensions between China and the US inevitably create challenging situations for an organization with HSBC’s footprint.”