HSBC (LON:HSBA) reports that profits of 36% fell to $3.1 billion (£2.4 billion) compared to the previous year.
As profits fell to September for three months, lenders warned that they could start billing customers for “basic banking services.”
“This latest guidance continues to be affected by high levels of uncertainty due to Covid-19 and geopolitical tensions, and assumes that even greater degradation in the current economic outlook is unlikely to occur,” HSBC said.
Earlier this year, lenders scrapped their dividends for the first time in 74 years. The bank will release its full-year figures in February.
HSBC has resumed its plans to cut 35,000 global jobs. In a June note to staff, Noel Quinn said: Against this background, I am writing now to let you know that we need to lift a suspension of work losses. ”
HSBC said the expected losses from bad debts are expected to range from $13 billion to $8 billion set earlier this year.
“This latest guidance continues to be affected by high levels of uncertainty due to Covid-19 and geopolitical tensions, and assumes that even greater degradation in the current economic outlook is unlikely to occur,” the bank said.
HSBC stock (LON: HSBA) is trading +5.65% at 337,40 (0912GMT).
