HSBC and Deutsche Bank Brace for Economic Hit From Tariffs
London-listed HSBC—a huge funder of international trade—raised its expected credit losses to $900 million, up about $200 million from a year ago.
In what it called a 'consensus downside' scenario, where higher tariffs slow global growth, HSBC said expected losses could rise by another $500 million and revenue could be cut by a few percentage points.
The provision reflects the possibility that tariffs lead to slower growth, higher unemployment and tighter financial conditions, said Pam Kaur, HSBC's chief financial officer, adding that the bank's analysis focused on sectors including autos and textiles.
HSBC hasn't seen any signs of financial stress among customers, she said.
Similarly, Deutsche Bank took a provision of 130 million euros, or about $148.5 million, citing an uncertain "geopolitical and macro-economic outlook in the U.S."
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