HSBC shares slip 5% after 2016 profits slump

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HSBC is the second biggest faller on the FTSE 100 this morning after Europe’s largest bank posted a 62 per cent fall in pre-tax profits last year.

Shares are down 5.5 per cent at the start of Tuesday morning trading in London to 673p, with the bank also announcing an additional $1bn share buyback earlier today (read more here).

HSBC shares have climbed steadily since the UK voted to leave the EU rising by more than 50 per cent on the London Stock Exchange.

But the bank said it was hit by one-off costs and write-offs last year, pushing its pre-tax profits on an adjusted basis to $19.3bn for the year – down about 1 per cent from the year before. Fourth-quarter profits disappointed forecasts, coming in at $2.6bn – around a quarter lower than analyst forecasts.

Jason Napier, head of European banks research at UBS, said “weak income trends and significant guided headwinds will mean consensus downgrades”.

The bank maintained its annual dividend at $0.51 per share.

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