HSBC’s fourth-quarter profit misses analysts’ forecasts as weaker outlook in global economy saps demand for loans
- HSBC says pre-tax profit for full year was US$19.9 billion – which was below analysts’ forecasts; shares fall 2.3 per cent
- Hang Seng Bank, a subsidiary of HSBC, reported a 21 per cent rise in net profit – soundly beating estimates
HSBC said on Tuesday that it returned to a profit in the fourth quarter, but it missed analysts’ expectations as the challenging market conditions and a weaker outlook for the global economy weighed on results.
Following the announcement, HSBC’s shares fell 2.3 per cent to HK$66.15 in Hong Kong on Tuesday.
A global sell-off in financial markets in December also weighed on results at several of HSBC’s banking rivals.
Asia-Pacific markets were hit especially hard last year, with the Shanghai Composite Index down nearly 25 per cent for the year, making it the worst performing major benchmark worldwide. Asian markets have bounced back this year, with the Shanghai Composite and the Hang Seng Index up about 10 per cent.
Europe’s largest bank reported a profit of US$1.5 billion in the fourth quarter, compared with a loss of US$274 million in the fourth quarter of 2017. The prior-year period included several one-time charges for restructuring, customer redress and legal costs.
On a pre-tax, adjusted basis, HSBC reported a profit of US$3.39 billion, below analysts’ forecasts.