HSBC reported a 35% fall in quarterly profit on Tuesday (October 27).
At 3.1 billion dollars it still beat analyst forecasts.
But the big decline has led the bank to signal it will overhaul its business model,
Turning its main source of income from interest rates to fee-based businesses.
HSBC will also accelerate plans to shrink in size and slash costs further than previously suggested.
The planned changes would mark one of the biggest shifts in HSBC strategy to date.
The bank has long advertised its ability to generate interest income from more than $1.5 trillion in customer deposits.
But with the global health crisis hitting markets, interest rates worldwide are at rock-bottom - and even turning negative.
The turnaround has left HSBC struggling to charge more for loans to borrowers than it pays out to depositors.
It also said it could start charging for products like current accounts.
That would potentially mark a big change in markets like the UK, where customers are used to free banking.
With fewer ways to grow revenue, the bank has looked to reduce costs globally.
In June it resumed plans to cut around 35,000 jobs, after delaying the move due to the health crisis.
HSBC said Tuesday it plans to bring annual costs to below $31 billion by 2022.
News of the restructuring helped shares in the lender climb as much as 6% in early trade.