HSBC to revamp business model as lower interest rates hit profit

HSBC said on Tuesday it plans to reduce annual costs to below $31 billion by 2022, a more ambitious target than it set out in February and well below the operating expenses of $42.3 billion it reported in 2019.

HONG KONG/LONDON: HSBC Holdings PLC on Tuesday signalled it would embark on a pandemic-induced overhaul of its business model, seeking to flip its main source of income from interest rates to fee-based businesses.

Reporting a 35% tumble in quarterly profit, Europe's largest bank also accelerated plans to shrink in size and will slash costs further than previously suggested.