HSBC Sets Aside Most for Credit Losses in Almost Nine Years

HSBC says 2020 credit losses could swell to $7 to $11 billion
Bank is pushing back restructuring program to deal with virus

Watch: HSBC CFO Stevenson discusses credit losses in the first-quarter, the impact of coronavirus on the business, the suspension of dividends and the recovery in Hong Kong and China.(Source: Bloomberg)

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By Harry Wilson

April 28, 2020 at 4:05 AM UTC

Updated on

April 28, 2020 at 4:51 AM UTC

This article is for subscribers only.

HSBC Holdings Plc took its biggest charge for bad debt in almost nine years and warned of deepening loan losses as it pushes back parts of its restructuring program.

Expected credit losses swelled to $3 billion in the first quarter, almost double estimates, and could rise to as high as $11 billion this year, the lender said on Tuesday. Adjusted pretax profit missed a consensus estimate collected by HSBC.