UpdateHSBC stock set to fall in Hong Kong as Q4 profit disappoints

Asian investors look set to sell HSBC stock when the market opens in Hong Kong today after Europe's biggest bank saw its profit slip in the fourth quarter of last year as provisions and levy commitments rose and revenue remained flat.

HSBC's London-listed stock fell as much as 5.68 per cent following the earnings report. The shares have fallen 0.29 per cent in Hong Kong this year and fell 0.53 per cent yesterday before the results announcement.

Analysts said the lack of a growth driver for its revenue remained HSBC's main challenge. The bank reported a pre-tax profit of US$22.56 billion last year, up 9 per cent from 2012 but short of the US$24.5 billion market consensus forecast.

Its pre-tax profit for the fourth quarter was about 12 per cent lower than in the third quarter.

Chief executive Stuart Gulliver took home £8.03 million (HK$104 million) in salary and bonuses last year, compared with £7.5 million in 2012, despite the group's disappointing performance.

HSBC became the first lender to say it would seek shareholder approval to lift the new European Union bonus cap to 200 per cent of its top executives' salary from 100 per cent.