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HSBC’s net profit below expectations, down 1.2% at $13.52 billion

Banking giant HSBC announced on Monday its net profit dropped by 1.2% in 2015, falling below analysts’ expectations after what it called “seismic shifts” in the world economy.

business Updated: Feb 22, 2016 11:49 IST
HSBC,Banking,Net profit
Stuart T Gulliver, group chief executive of HSBC Holdings, looks on at a panel discussion during the Asian Financial Forum in Hong Kong, China. HSBC’s net profit was lower than analysts' estimates against a bleak backdrop of slowing growth in China and tumbling commodity prices.(Reuters File Photo)

Global banking giant HSBC announced on Monday its results for 2015 which fell below analysts’ expectations after what it called “seismic shifts” in the world economy.

The bank said net profit dropped 1.2% to $13.52 billion from the previous year.

Group chairman Douglas Flint described the performance as “broadly satisfactory” in a statement, although the bank’s pre-tax profit of $18.9 billion missed analysts’ forecast of $21.8 billion.

HSBC also posted a fourth quarter pre-tax loss of $858 million, compared with the $1.95 billion profit forecast by the average of five analysts in a Bloomberg survey.

It comes after a turbulent year which saw a market rout in China and commodity prices plunge as well as tightening credit due to a US rates hike.

Last year HSBC announced a radical overhaul as it sought to boost profits and move past scandals that have scarred the British lender, including the rigging of foreign exchange markets.

The restructuring included the axing of 50,000 jobs globally.

CEO Stuart Gulliver said in a statement on Monday that those cost-reduction measures were “already having an impact”.

“HSBC is now a leaner business,” he said.

But after announcing last year that it would shed operations in Brazil and Turkey as part of cost slashing, Gulliver said the Turkey business would now remain.

“We have received a number of offers for our business in Turkey since June, none of which were deemed to be in the best interests of shareholders. We have therefore decided to retain and restructure our Turkish operations,” Gulliver said.

Flint confirmed that the disposal of the Brazil business was almost complete.

First Published: Feb 22, 2016 11:49 IST