The London-based lender said that pre-tax profit in the first half of the year fell 65% to $4.3 billion compared to the same time last year as revenue fell and as credit losses were worse than expected.
“Our first half performance was impacted by the Covid-19 pandemic, falling interest rates, increased geopolitical risk and heightened levels of market volatility,” CEO Noel Quinn said in a statement.
The bank added that expected credit losses for 2020 could hit as much as $13 billion this year, worse than earlier estimates “given the deterioration in consensus economic forecasts.”
The company also disclosed a $1.2 billion writedown due to an “impairment of software intangibles, mainly in Europe.”
Falling income didn’t help either. The bank’s revenue tumbled 9% in the first half versus the same time last year, hurting profits even more.
Read more: CNN