Experimental feature

Listen to this article

Experimental feature

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.

Get alerts on UK when a new story is published

Copyright The Financial Times Limited 2020. All rights reserved.
Reuse this content (opens in new window)

Comments have not been enabled for this article.

Follow the topics in this article