HSBC: third-quarter performance deemed 'not acceptable'
(CercleFinance.com) - HSBC's performance in the third quarter was "not acceptable," principally due to businesses within continental Europe, the Group Chief Executive Noel Quinn said on Monday.
Europe's biggest bank said profit attributable to ordinary shareholders fell by 24% in the past quarter to 3 billion dollars, reflecting "challenging" market conditions.
While parts of our business - especially Asia - held up pretty well in the challenging environment in the third quarter, the performance of the wholesale bank unit in the UK and the US division have disappointed, the group said
"Our previous plans are no longer sufficient to improve performance for these businesses, given the softer outlook for revenue growth," said CEO Noel Quinn.
HSBC said that it will accelerate plans to remodel these businesses, and move capital into higher growth and return opportunities.
With the revenue environment more challenging than in first half 2019, the bank no longer expects to reach its RoTE (return on tangible equity) target of over 11% in 2020.
In early morning trading, its shares were down over 4% on the FTSE 100 index.
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