HSBC bets on Asian wealth in revised strategy

Europe's biggest bank by assets reported profit before tax of $8.78 billion for 2020, down from $13.35 billion a year earlier. The profit was higher than the $8.33 billion average of analysts' estimates compiled by the bank.

HONG KONG/LONDON: HSBC Holdings PLC on Tuesday abandoned its long-term profitability target, and unveiled a revised strategy focused mainly on wealth management in Asia after the Covid-19 shock saw its annual profits drop sharply.

Citing the low interest rate environment and tough market conditions, HSBC ditched its goal of achieving a return on tangible equity of 10 to 12%, and said instead it will aim for 10% over the medium term.