As it prepares financial results, HSBC said that accounting standards require it to account for the virus’s impact on economies. The lender, which generates most of its revenue in Asia, said Wednesday in a filing that the disruption could have “adverse impacts” on the value of its assets, including its holding in China’s
HSBC had said last month that the virus would result in between $200 million and $500 million of first-quarter losses.
HSBC, which operates in more than 50 countries, also warned that central banks and regulators might start restricting movements of capital if the crisis persists. Such an outcome “may limit management’s flexibility in managing the business and taking action in relation to capital distribution and capital allocation,” it said.
Restructuring on Hold
A separate memo sent to staff shows how the pandemic has forced newly installed Chief Executive Officer
“We recognize that the question of job losses is a concern for many of you,” the memo said. “Because of the extaordinary impact of the COVID-19 pandemic, we have decided to pause, for the time being, the vast majority of redundancies associated with this program where notices have not already been issued.”
Last month, Quinn, who was interim CEO at the time, unveiled a restructuring that involved cutting the sprawling global lender’s 235,000-strong workforce by about 35,000 over the next three years. In Wednesday’s memo, the bank added that it would also cease new hiring, with the exception of a “small number of front-line and business critical roles.”
(Updates from first paragraph with previous loss estimate and details of pause to restructuring program)
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