HSBC's pivot to Asia helps drive 141% jump in annual profits

HSBC share price slides as group’s full-year profits miss estimates

Where to Look for HSBC's Next Big Move

HSBC has reported a 141.4% jump in pre-tax profit for the year to December 31 to 17.2 billion United States dollars (£12.3 billion).

The bank's year-ago profit figure reflected a $3.2bn impairment of goodwill in HSBC's global private banking business in Europe and the impact of its sale of operations in Brazil.

The bank's shares were down in afternoon trading, falling 2.09 percent in afternoon trading at HK$81.8 ($10.5).

"The bank is back in growth mode, but we shouldn't expect a bounce-back in payouts in 2018".

The bank said profits were affected by future employee benefits, with its €2m charge in 2016 going up to €7.6m in 2017.

HSBC Holdings (HSBA.L) reported a smaller than expected rise in annual profits and unveiled plans to raise up to $7 billion to bolster its capital, as CEO Stuart Gulliver hands over to a new leadership team on Tuesday.

Though well known on the British High Street, HSBC makes most of its money outside the United Kingdom, with Asia accounting for the bulk of global profits.

Tucker, an outsider who took over as chairman in October, said the bank forecast "reasonable growth" for the world's major economies in 2018, aided by low unemployment, recovering consumer confidence and improving trade.

Metal Gear Survive Launch Trailer Shows More Enemies
If you still have the beta installed on your PS4 or Xbox One, then you'll just have to download a patch and you'll be good to go. In a struggle to survive and understand this new environment, players engage in both single player and connected co-op.

"The results were decent enough, but nothing earth-shattering", said Hugh Young, head of Asia at Standard Life Aberdeen Plc, one of the bank's top shareholders.

Net profit stood at $9.7 billion in 2017, up from $1.3 billion year-on-year.

Greenwood said: "The dividend was maintained but there is no indication as to when growth may resume".

It was Mr Gulliver's last set of results before handing the reins to John Flint, an HSBC veteran who needs to maintain momentum as the bank tries to put years of restructuring and scandal behind it. Mr Gulliver spent much of his tenure shrinking the lender's far-flung global network, exiting nearly 100 businesses and 18 countries.

In December, HSBC passed a key milestone when a five-year deferred prosecution agreement with the U.S. Department of Justice expired.

In a landmark case, the bank agreed to pay $1.9 billion in fines in 2012, after admitting it knowingly moved hundreds of millions of dollars for Mexican drug cartels and illegally served clients in Iran, Myanmar, Libya, Sudan and Cuba in violation of United States sanctions.

Gulliver described the lifting of the threat of prosecution by the USA as an "important milestone".

"HSBC is comfortably the second largest dividend payer in the United Kingdom, but a long process of restructuring has meant nearly no growth in dividends for four years", commented Justin Cooper, CEO of Link Market Services, part of Link Asset Services.

Latest News