Finance

HSBC shares sink 3% after pre-tax annual profit misses estimates on impairment costs

In this article

Customers use automated teller machines (ATM) at an HSBC Holdings Plc bank branch at night in Hong Kong, China, on Saturday, Feb 16, 2019.
Anthony Kwan | Bloomberg | Getty Images

HSBC‘s full-year 2023 pre-tax profit missed analysts’ estimates on Wednesday, hit by impairment costs linked to the London-based lender’s stake in a Chinese bank.

Europe’s largest bank by assets saw its pre-tax profit climb about 78% to $30.3 billion in 2023 from a year ago, but missed median estimates of $34.06 billion from analysts tracked by LSEG.

Chief Executive Noel Quinn also announced an additional share buyback of up to $2 billion, while noting that the bank suffered “a valuation adjustment of $3 billion” on its stake in Bank of Communications.

HSBC’s Hong Kong shares went into the midday trading break up about 1%, compared with 3% gains for the Hang Seng Index. The bank’s shares have gained about 0.5% so far this year after jumping 23% in 2023 as the Hang Seng Index shed 14%.

Stock Chart IconStock chart icon

hide content
HSBC shares

Here are the other highlights of the bank’s full year 2023 financial report card:

  • Revenue for 2023 increased by 30% to $66.1 billion, compared with the median LSEG forecast for about $66 billion.
  • Net interest margin, a measure of lending profitability, was 1.66% — compared with 1.48% in 2022.
  • Common equity tier 1 ratio — which measures the bank’s capital in relation to its assets — was 14.8%, compared with 14.2% in 2022.
  • Basic earnings per share was $1.15, compared with the median LSEG forecast for $1.28 in 2023 and 75 cents for 2022.

This is a developing story. Please check back for more details.

Articles You May Like

Beer giant AB InBev beats profit estimates, with Bud Light boycott set to ease one year on
Beware When Choosing Assisted Living For An Aging Parent
Canada Goose jumps 16% after the company reports growth surge in China
GameStop, AMC rallies like ‘watching a sitcom on repeat,’ expert says. Here are the risks to monitor
Social Security’s ‘biggest myth’ leads people to claim early, expert says. Even a slight delay can boost retirement income

Leave a Reply

Your email address will not be published. Required fields are marked *