Although its pre-tax profit fell 34% in 2020 compared to the year prior, HSBC’s annual earnings beat expectations despite a tough year due to the coronavirus pandemic. The pandemic may have accelerated some strategic moves that have been in the works for some time, including a pivot eastward to Asia and a shift away from North America and Europe.

Why should we care?
London-based HSBC is Europe’s biggest bank by assets. It generates most of its revenues from Asia, and executives indicated that the bank will continue along this path. The bank plans to move jobs, investments, and capital to the region as it pulls away from Europe and North America. The company’s CEO Noel Quinn said the bank would “stop trying to be everything to everyone,” with a focus on wealth management in Asian markets. The bank is also reducing its office footprint by 40%. The future of HSBC’s U.S. operations is still hanging in the balance, with reports that the bank plans to close its U.S. operations still percolating. Though the bank did not say it would wind down its U.S. operations, the company noted that it was looking at “organic and inorganic options” for its U.S. retail bank and was in negotiations regarding a potential sale of its French business.