HSBC posted an 82% fall in profits as Covid-19 hit the UK lender, prompting it to warn of deeper cost-reductions beyond its current plans for 35,000 job cuts as the outlook for its business darkened.

The bank posted pre-tax profit of $1.1bn during the second quarter of 2020, more than 80% down on the same period last year as reserves for credit losses swelled from $555m to $3.8bn. The bank said that the total put aside for bad loans during the coronavirus crisis could increase to as much as $13bn for the year.