HSBC lost $ 3 billion in bad debts

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HSBC’s quarterly profit has halved

Fintech

Coronacris: How a Big Bank Lost $ 3 Billion in Bad Loans. Photo: flickr.com

HSBC, a major international bank, reported a sharp decrease in profits. Due to the coronovirus epidemic, the financial institution is preparing to send $ 3 billion to cover bad debts.

HSBC expects that there will be “continued pressure” on the bank’s revenue due to reduced customer activity and increased interest margins as well as fraud, which could lead to “potentially significant” loan losses.

According to Reuters, this possibility is relevant to many financial and credit organizations that are earning their quarterly income. In particular, at this time, the region is facing a crisis of corporate borrowers, low prices for stocks and oil, as well as low interest rates.

Other problems with HSBC include the suspension of layoffs planned as part of the company’s reorganization.

The bank increased the projected loan deficit to $ 2.4 billion – $ 3 billion in January – March, the highest rate in nine years. For the year, this amount can range from $ 7 to 11 billion.

The bank’s quarterly profit before tax fell 48% to $ 3.2 billion, lower than bank analysts’ ($ 3.7 billion) forecast. Revenue fell 5% to $ 13.7 billion.

Recall that the Japanese corporation Softbank had earlier warned that the company’s operating losses reached a record $ 12.5 billion as a result of the end of the financial year.

Paypal magazine help

HSBC previously reported that the introduction of voice biometrics in call centers has prevented the £ 400 million theft of the telephone scam by 2019.

HSID introduced VoiceID technology in 2016, and is currently being used by over 2 million active customers. It recognizes the unique features of a customer’s voice, providing secure and fast access to telephone banking.

According to the bank, more than 29 thousand fake calls have been identified since the arrival of this technology in the UK. This prevented the theft of £ 395 million. More than 17 thousand cases of fraud were detected in 2019, which is double in 2018.

Read: How to save banks in coronacrosis: key expert tips

According to the material reuters.com


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