Corporate Debt Restructuring Masterclass

18 July 2022 (Mon), 5pm Singapore/HK time

HSBC reported a profit before tax of $8.8bn for 2020, down 34% YoY, beating expectations of $8.3bn. The bank also declared a dividend of $0.15/share to be paid in cash. Net profits were at $6.1bn, down 30% mainly due higher expected credit losses (ECL), impairment charges and lower revenues. Software intangibles saw a $1.3bn impairment and revenues were down 10% on the back of lower interest rates. The bank’s CET1 was at 15.9%, up 120bp from end-2019. The CEO Noel Quinn said “Our investment plans remain essential to the future of the business. We continued to invest heavily in technology while managing costs down, spending $5.5bn during 2020. Our funding, liquidity and capital remain strong. We grew deposits by $173bn on a constant currency basis, with increases across all three global businesses.” HSBC’s bonds were stable with their USD 6% Perp at 110.56, yielding 4.07%.

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