- HSBC reported a drop in third-quarter profit as the lower interest rate environment weighed on revenue.

For the quarter ended 30 September, pre-tax profit fell to $3.1 billion from $4.8 billion year-on-year as revenue plunged to $11.9 billion from $13.4 billion.

The bank reported expected credit losses and other credit impairment charges of $0.1 billion, down from $0.8 billion seen in the second quarter, reflecting a stabilisation of the forward economic outlook.

Its common equity tier 1 capital ratio was 15.6%, up 0.6% from 15.0%in the second quarter.

HSBC said its decision on whether to pay a 'conservative' dividend for the year would be based on its results for 2020 and forecasts for 2021.

Looking ahead, the bank touted improved credit loss provisions, and said it would cut costs by more than expected.

The expected credit loss charge for 2020 was currently trending towards the lower end of the $8b billion to $13 billion range, while the 2022 annual cost base was expected to exceed its original $31 billion target.

'This latest guidance, which continues to be subject to a high degree of uncertainty due to Covid-19 and geopolitical tensions, assumes that the likelihood of further significant deterioration in the current economic outlook is low, and that stage 3 impairments from now until the end of 2020 are broadly in line with the average quarterly charge for the year to date,' it added.

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