TAFKAS appreciates that it is difficult, but it is important to see what is going on beyond our shores. To wit, the Financial Times is reporting:
HSBC profits plunge 96% as loan-loss provisions jump on coronavirus
For those unawares, HSBC is Europe’s largest lender and provisions are essentially management’s estimates for loans going bad.
What does this mean:
HSBC’s second-quarter net income was almost wiped out, plunging 96 per cent to $192m, far below the $1.3bn expected by analysts. Revenue fell 4 per cent to $13bn largely due to a decline in retail banking income, which was partially offset by a surge in trading at the investment bank.
Look also at this chart: