HSBC's headquarters in Hong Kong. The London-based lender said its pre-tax profit fell 50 per cent to $2.2 billion. EPA
HSBC's headquarters in Hong Kong. The London-based lender said its pre-tax profit fell 50 per cent to $2.2 billion. EPA
HSBC's headquarters in Hong Kong. The London-based lender said its pre-tax profit fell 50 per cent to $2.2 billion. EPA
HSBC's headquarters in Hong Kong. The London-based lender said its pre-tax profit fell 50 per cent to $2.2 billion. EPA

HSBC pivots to Asian markets after profit tumbles


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HSBC's earnings beat estimates in the fourth quarter as Europe's biggest bank kept costs in check and signalled bigger investments to drive its pivot to faster-growing Asian markets.

Weighed down by loan losses, adjusted pre-tax profit slid 50 per cent to $2.2 billion in the period, compared with a $1.8bn estimate, the London-based lender said on Tuesday. HSBC will resume paying a dividend of $0.15 per share after British regulators relaxed a ban intended to preserve capital last year after the Covid-19 outbreak.

HSBC rose 4.6 per cent to HK$48.65 ($6.27) on the Hang Seng Index as of 9:02am UAE time.

The bank had a “solid financial performance in the context of the pandemic – particularly in Asia”, which lays “firm foundations for our future growth”, chief executive Noel Quinn said in a statement.

Sticking to cost-cutting plans that will reduce its workforce by about 35,000, HSBC is pushing through one of the banking industry’s most radical responses to the pandemic. The bank is shifting billions of dollars to beef up operations across Asia, seeking to become a market leader in wealth management by targeting a rapidly expanding affluent population in the region.

The bank on Tuesday outlined plans to invest about $6bn in Asia, targeting wealth, commercial banking and markets to drive “double-digit growth in profit”. It singled out markets in South-East Asia such as Singapore, as well as China and Hong Kong.

Expected credit losses last year hit $8.8bn, at the low end of a previously announced range of $8bn to $13bn. It now expects them to be materially lower this year.

The bank stuck to a target of getting its cost base down to $31bn or less in 2022 as well as a $100bn reduction in gross risk-weighted assets. It doesn’t expect to reach a return on average tangible equity target of between 10 per cent and 12 per cent in 2022, but will now target a return of 10 per cent or above in the medium term.

The focus on other markets in Asia outside Hong and China involves more than economics. China’s crackdown on Hong Kong has increasingly forced HSBC to accept criticism in the US and UK as a cost of doing business. Mr Quinn was summoned to testify to British politicians this month over the lender’s decision to close the accounts of an exiled Hong Kong democracy activist.

The bank divulged little news on its plans for Europe and the US.

HSBC said it is in talks on selling its French retail bank and is likely to post a loss on any divestment. It is exploring “strategic options” for its US retail franchise and wants to focus on high-net-worth clients. HSBC has one of the largest US businesses of any non-American bank, partly a result of its ill-fated acquisition of Household International in 2003, the subprime lender that ended up costing the company billions of dollars in writedowns.

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UAE currency: the story behind the money in your pockets
'The Batman'

Stars:Robert Pattinson

Director:Matt Reeves

Rating: 5/5

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
The specs

Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now

If you go

 

  • The nearest international airport to the start of the Chuysky Trakt is in Novosibirsk. Emirates (www.emirates.com) offer codeshare flights with S7 Airlines (www.s7.ru) via Moscow for US$5,300 (Dh19,467) return including taxes. Cheaper flights are available on Flydubai and Air Astana or Aeroflot combination, flying via Astana in Kazakhstan or Moscow. Economy class tickets are available for US$650 (Dh2,400).
  • The Double Tree by Hilton in Novosibirsk ( 7 383 2230100,) has double rooms from US$60 (Dh220). You can rent cabins at camp grounds or rooms in guesthouses in the towns for around US$25 (Dh90).
  • The transport Minibuses run along the Chuysky Trakt but if you want to stop for sightseeing, hire a taxi from Gorno-Altaisk for about US$100 (Dh360) a day. Take a Russian phrasebook or download a translation app. Tour companies such as  Altair-Tour ( 7 383 2125115 ) offer hiking and adventure packages.
2019 Asian Cup final

Japan v Qatar
Friday, 6pm
Zayed Sports City Stadium, Abu Dhabi

Tewellah by Nawal Zoghbi is out now.

While you're here
The five pillars of Islam

1. Fasting

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3. Hajj

4. Shahada

5. Zakat 

The years Ramadan fell in May

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The details

Colette

Director: Wash Westmoreland

Starring: Keira Knightley, Dominic West

Our take: 3/5

Infiniti QX80 specs

Engine: twin-turbocharged 3.5-liter V6

Power: 450hp

Torque: 700Nm

Price: From Dh450,000, Autograph model from Dh510,000

Available: Now

COMPANY PROFILE
Name: Akeed

Based: Muscat

Launch year: 2018

Number of employees: 40

Sector: Online food delivery

Funding: Raised $3.2m since inception 

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

Another way to earn air miles

In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.

An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.

“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.

Cases of coronavirus in the GCC as of March 15

Saudi Arabia – 103 infected, 0 dead, 1 recovered

UAE – 86 infected, 0 dead, 23 recovered

Bahrain – 210 infected, 0 dead, 44 recovered

Kuwait – 104 infected, 0 dead, 5 recovered

Qatar – 337 infected, 0 dead, 4 recovered

Oman – 19 infected, 0 dead, 9 recovered

Top goalscorers in Europe

34 goals - Robert Lewandowski (68 points)

34 - Ciro Immobile (68)

31 - Cristiano Ronaldo (62)

28 - Timo Werner (56)

25 - Lionel Messi (50)

*29 - Erling Haaland (50)

23 - Romelu Lukaku (46)

23 - Jamie Vardy (46)

*NOTE: Haaland's goals for Salzburg count for 1.5 points per goal. Goals for Dortmund count for two points per goal.

2018 ICC World Twenty20 Asian Western Sub Regional Qualifier

Event info: The tournament in Kuwait this month is the first phase of the qualifying process for sides from Asia for the 2020 World T20 in Australia. The UAE must finish within the top three teams out of the six at the competition to advance to the Asia regional finals. Success at regional finals would mean progression to the World T20 Qualifier.

UAE’s fixtures: Fri Apr 20, UAE v Qatar; Sat Apr 21, UAE v Saudi Arabia; Mon Apr 23, UAE v Bahrain; Tue Apr 24, UAE v Maldives; Thu Apr 26, UAE v Kuwait

World T20 2020 Qualifying process:

  • Sixteen teams will play at the World T20 in two years’ time.
  • Australia have already qualified as hosts
  • Nine places are available to the top nine ranked sides in the ICC’s T20i standings, not including Australia, on Dec 31, 2018.
  • The final six teams will be decided by a 14-team World T20 Qualifier.

World T20 standings: 1 Pakistan; 2 Australia; 3 India; 4 New Zealand; 5 England; 6 South Africa; 7 West Indies; 8 Sri Lanka; 9 Afghanistan; 10 Bangladesh; 11 Scotland; 12 Zimbabwe; 13 UAE; 14 Netherlands; 15 Hong Kong; 16 Papua New Guinea; 17 Oman; 18 Ireland

PREMIER LEAGUE FIXTURES

Tuesday (UAE kick-off times)

Leicester City v Brighton (9pm)

Tottenham Hotspur v West Ham United (11.15pm)

Wednesday

Manchester United v Sheffield United (9pm)

Newcastle United v Aston Villa (9pm)

Norwich City v Everton (9pm)

Wolves v Bournemouth (9pm)

Liverpool v Crystal Palace (11.15pm)

Thursday

Burnley v Watford (9pm)

Southampton v Arsenal (9pm)

Chelsea v Manchester City (11.15pm)

Trolls World Tour

Directed by: Walt Dohrn, David Smith

Starring: Anna Kendrick, Justin Timberlake

Rating: 4 stars

SHOW COURTS ORDER OF PLAY

Wimbledon order of play on Tuesday, July 11
All times UAE ( 4 GMT)

Centre Court

Adrian Mannarino v Novak Djokovic (2)

Venus Williams (10) v Jelena Ostapenko (13)

Johanna Konta (6) v Simona Halep (2)

Court 1

Garbine Muguruza (14) v

Svetlana Kuznetsova (7)

Magdalena Rybarikova v Coco Vandeweghe (24) 

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The specs

Price, base: Dh228,000 / Dh232,000 (est)
Engine: 5.7-litre Hemi V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 552Nm
Fuel economy, combined: 12.5L / 100km