HSBC’s Asia focus sees annual profits more than double for year
HSBC HAS thanked its pivot to Asia for helping it more than double annual profits in 2017.
The lender said pre-tax profits rose to 17.2 billion US dollars (£12.3bn) in the year to December 31, marking a whopping 141 per cent jump compared to 7.1 billion dollars (£5.1bn) a year earlier.
The bank said its focus on the Asian business “again contributed a substantial proportion” of group profits – driving around 75 per cent of both reported and adjusted earnings – particularly in commercial banking, retail banking and wealth management.
Results were also flattered by comparable figures in 2016, which had been dragged lower after HSBC booked a loss on sale and trading results of the Brazilian operations it offloaded that summer.
Reported revenue for the year rose 7 per cent from 48 billion dollars (£34.4bn) to 51.4 billion dollars (£36.8 bn).
While the figures marked growth from a year earlier, they came in below analyst consensus forecasts.
“Overall you have to call this a strong performance from HSBC but falling short of fairly lofty expectations means the stock looks set to fall,” Neil Wilson, a senior market analyst at ETX Capital, said.
Investor disappointment sent HSBC’s London shares down 3.5 per cent to around 733p.
HSBC logged higher expenses linked to the establishment of its UK ring-fenced bank – in line with new regulatory standards – at 392 million dollars (£281m) compared to 223 million dollars (£160m) a year earlier.
It also booked 28 million dollars (£20m) in “costs associated with the UK’s exit from the EU”.