HSBC posted a record annual profit today but missed analysts’ estimates as it was forced to take a $3bn hit due to its exposure to a Chinese bank. The UK-based lender, which does most of its business in Asia, saw its profits for the fourth quarter of 2023 fall by 80 per cent year on year.
Overall, its full-year 2023 pre-tax profits rose by 78 per cent to $30.3bn, driven by high global interest rates. However, this was below the $34.1bn average estimate of brokers compiled by the bank. HSBC experienced a “valuation adjustment” of $3bn on its 19 per cent stake in China’s Bank of Communications, CEO Noel Quinn said. Following the news of the writedown, HSBC’s shares fell 3.8 per cent in Hong Kong and 6.8 per cent in London.
