HSBC results disappoint sending shares down

HSBC Holdings, Europe's largest bank, said full-year profit rose 9 per cent, missing analysts' estimates, as costs and bad-loan charges fell.

Pretax profit for 2013 rose to $22.6 billion from $20.7 billion in the year-earlier period, the London-based bank said today.

Chief executive officer Stuart Gulliver, 54, said in May he would trim an additional $3 billion of annual expenses after beating an earlier target with the closing or sale of more than 60 businesses. The bank, which gets most of its profit from Asia, is focusing on its most lucrative markets amid increased regulation and compliance costs.

“The group is leaner and simpler than in 2011 with strong potential for growth,” Gulliver said in the statement. “Strong capital generation continues to support our progressive dividend policy and reinforces HSBC’s status as one of the best capitalised banks in the world.”

The shares declined 4.3 per cent to 626.2 pence in early morning trading in London, the sharpest fall since August.

Bloomberg