Europe's largest bank sees reported profit rise more than 140 percent

  • Europe's largest bank sees reported profit rise more than 140 percent

Europe's largest bank sees reported profit rise more than 140 percent

HSBC veteran John Flint, who is taking over from Gulliver, is charged with steering HSBC back to growth and will likely look to Asia, where HSBC made over 75 percent of its profits in 2017.

Although the bank is popular on the British High Street, it makes most of its money outside the country, with Asia accounting for the majority of global profits.

Further, the company maintained the dividend at $0.51 per ordinary share.

HSBC shares were down 2.2 per cent in afternoon Hong Kong trading after the results announcement.

HSBC shares fell as much as 4.4 percent in London by 0905 GMT, as investors registered the profit performance and disappointment over the absence of a share buyback.

Revenue was $51.45 billion, up 7% from $47.97 billion a year ago, in part due to adverse fair value movements on own debt in 2016, which are now reported in other comprehensive income.

The bank reported a $218 million increase in bad loan charges in the fourth quarter compared with the previous period, which it blamed on "two individual corporate exposures in Europe".

The two companies in question were Steinhoff - the South African retailer engulfed in an accounting scandal, which owns businesses in Britain - and Carillion, the United Kingdom construction company that imploded earlier this year, said the person, who asked not to be identified speaking about confidential matters.

The failure to live up to analysts' estimates marked a rare event in outgoing HSBC chief executive Stuart Gulliver's seven-year reign.

The creditor plans to issue Tier-1 capital between 5 billion United States dollars and 7 billion USD in the first half of 2018, and to buy back shares if and when it is appropriate.

"You shouldn't read any change in attitude towards our approach to capital management and the role of buy-backs".

As well as overseeing a move to Asia, Gulliver's time as chief executive has also been bedevilled by a number of investigations of the bank for breaking compliance rules, leading to substantial fines.