HSBC Shares Fall After Lower-Than-Expected Earnings
HSBC posted much lower-than-expected full year earnings and increased its share buyback program after taking a multi-billion dollar writedown on its European private banking assets
HSBC plc (HSBC) - Get Report shares fell sharply in London Monday after Europe's biggest bank posted much lower-than-expected full year earnings and increased its share buyback program Tuesday after taking a multi-billion dollar write down on its European private banking assets.
HSBC said full-year profits before tax came in at $7.1 billion, down 62% from 2015 and well shy of the $14.4 billion forecast by analysts. Profits on an adjusted basis came in at $19.3 billion while revenues for the full year were $50.2 billion, the bank said. HSBC said the bottom line was hit by a $3.2 billion goodwill writedown on its private banking division in Europe, which was linked to the purchase of Safra Republic Holdings in 1999.
