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Finance

HSBC sees credit losses surging to highest level in a decade

Higher provisions include 'significant charge' to corporate exposure in Singapore

HONG KONG -- HSBC Holdings warned that its provisions for loan losses in 2020 could surge to the highest level in a decade due to the coronavirus pandemic, after it reported on Tuesday that first-quarter profit tumbled 48%.

The London-based bank said it sees its expected credit loss for the year in the range of $7 billion to $11 billion if a prolonged recession were to occur. That compares with a $2.8 billion charge for all of 2019 and a $7.5 billion average for 2020 based on brokerage-firm estimates compiled by the bank.

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