By Sumeet Chatterjee, Lawrence White
HONG KONG/LONDON (Reuters) – HSBC Holdings PLC on Tuesday signaled it would embark on a pandemic-induced overhaul of its business model, seeking to flip its main source of income from interest rate to fee-based businesses.
Reporting a 35% tumble in quarterly profit, Europes largest bank also accelerated plans to shrink in size, targeted deeper cost cuts, and said it will resume conservative dividend payments when able.
The planned business model changes mark one of the biggest shifts in strategy to date from HSBC, which has long touted its ability to generate interest income from its more than $1.5 trillion in customer deposits.
But with interest rates worldwide now rock bottom and…
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