April 28, 2020 / 4:28 AM / a month ago

BRIEF-HSBC Holdings Says Expect Material Downward Pressure On NIM In Future Qtrs

April 28 (Reuters) - Hsbc Holdings:

* ECONOMIC IMPACT OF COVID-19 PANDEMIC ON OUR CUSTOMERS HAS BEEN MAIN DRIVER OF CHANGE IN OUR FINANCIAL PERFORMANCE SINCE TURN OF YEAR

* HSBC, ON COVID-19, SAYS RESULTANT INCREASE IN EXPECTED CREDIT LOSSES IN Q1 CONTRIBUTED TO A MATERIAL FALL IN REPORTED PROFIT BEFORE TAX

* ARE ALSO WORKING CLOSELY WITH GOVERNMENTS AROUND WORLD TO CHANNEL FISCAL SUPPORT TO REAL ECONOMY QUICKLY AND EFFICIENTLY

* EXPECT MID-TO-HIGH SINGLE DIGIT PERCENTAGE GROWTH IN RWAS IN 2020

* EXPECT MATERIAL DOWNWARD PRESSURE ON NIM IN FUTURE QUARTERS AS WE INCUR FULL IMPACT OF 1Q20 MARKET INTEREST RATE REDUCTIONS

* EXPECT RESTRUCTURING COSTS FOR 2020 TO BE LOWER THAN INDICATED IN OUR 2019 ANNUAL RESULTS

* IMPACT AND DURATION OF COVID-19 CRISIS WILL LIKELY LEAD TO HIGHER ECL

* IMPACT AND DURATION OF COVID-19 CRISIS WILL PUT PRESSURE ON REVENUE DUE TO LOWER CUSTOMER ACTIVITY LEVELS AND REDUCED GLOBAL INTEREST RATES

* TEMPORARILY DELAYED PARTS OF OUR TRANSFORMATION, INCLUDING SOME ELEMENTS OF OUR COST AND RISK-WEIGHTED ASSET (‘RWA’) REDUCTION PROGRAMME

* PLAN TO REDUCE OPERATING EXPENSES TO PARTLY MITIGATE REDUCTION IN REVENUE AND WE INTEND TO CONTINUE TO EXERCISE COST DISCIPLINE,

* DURING 2020, WE WILL CONTINUE TO ASSESS IMPACT OF COVID-19 CRISIS AND REVIEW OUR FINANCIAL PERFORMANCE AND BUSINESS PLAN ACCORDINGLY

* COVID-19 OUTBREAK WILL ALSO HAVE MATERIAL IMPACTS ON CAPITAL AND LIQUIDITY

* UNTIL END OF 2020 WE WILL MAKE NO QUARTERLY OR INTERIM DIVIDEND PAYMENTS OR ACCRUALS IN RESPECT OF ORDINARY SHARES

* ALSO PLAN TO SUSPEND SHARE BUY-BACKS IN RESPECT OF ORDINARY SHARES IN 2020 AND 2021

* AN IMMEDIATE FINANCIAL IMPACT OF OUTBREAK IS AN INCREASE IN ECL, DRIVEN BY A CHANGE IN ECONOMIC SCENARIOS USED TO CALCULATE ECL

* ECL WILL ARISE FROM OTHER PARTS OF OUR BUSINESS IMPACTED BY DISRUPTION TO SUPPLY CHAINS

* IMPACT OF OUTBREAK ON LONG-TERM PROSPECTS OF BUSINESSES IN SOME SECTORS IS UNCERTAIN, MAY LEAD TO SIGNIFICANT ECL CHARGES ON SPECIFIC EXPOSURES

* IN TIMES OF CRISIS, FRAUDULENT ACTIVITY IS OFTEN MORE PREVALENT, LEADING TO POTENTIALLY SIGNIFICANT ECL CHARGES

* IF COVID-19 OUTBREAK CONTINUES TO CAUSE DISRUPTION TO ECONOMIC ACTIVITY GLOBALLY THROUGH 2020, THERE COULD BE FURTHER ADVERSE IMPACTS ON INCOME

* COVID-19 HAVE IMPACT ON ABILITY TO MEET FINANCIAL TARGETS AS SET OUT IN BUSINESS UPDATE IN FEB, ALSO ADVERSELY AFFECT FUTURE DIVIDEND POLICY Source text for Eikon: Further company coverage:

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below