HSBC warns that it will start charging for current accounts

 

HSBC has reported a 35 per cent fall in pre-tax profits for the three months to the end of September and wants to start charging for current accounts.

Europe’s largest bank by assets is finding it difficult to charge more for loans than it pays out to depositors as the interest rates are the lowest.

The bank confirmed it is considering charging for products such as current accounts that British customers are accustomed to having for free.

Ewen Stevenson, HSBC  CFO said: “ We will have to look at charging for basic banking services in some markets because a large number of our customers in this environment will be losing us money”.

HSBC’s pre-tax profits of $3.1bn ($2.4bn) for the third quarter down from $4.8bn (£3.7bn) at the same time last year. The bank is expecting losses from bad loans will not be as bad as forecast and that its main markets will improve.

 

Meanwhile, Spanish bank Santander increased revenues  18 per cent in constant euros as activity returned close to pre-pandemic levels although the third-quarter profit fell by 17 per cent due to coronavirus related provisions following a second-quarter net loss of €11.1bn (£10bn) due to Covid-related write-downs, according to executive chairman Ana Botin.

The bank has forecast an underlying profit of around €5bn ($.5bn) this year, has reported that net profit more than trebled in the third quarter to €1.75bn ( £1.6bn) compared with the same period a year ago.