LONDON (AP) — Europe's biggest bank, HSBC, said Monday that its net profit plummeted 96% in the second quarter of this year as lower interest rates combined with the downturn due to the coronavirus pandemic tool hold.
The bank's net profit was $192 million in the April-June quarter, down from $4.37 billion reported in the same period a year earlier.
Net profit in the first quarter of the year was $1.79 billion.
London-based HSBC has most of its business in Asia, where the pandemic began, first emerging in central China.
Near-zero interest rates meant to help businesses keep running with cheap credit are squeezing margins for lenders. The bank forecasts expected credit losses of $8 billion-$13 billion in 2020, though it said that was "subject to a high degree of uncertainty."