HSBC has posted $21bn of adjusted profit before tax in 2017, 11% up on the previous year, but below analyst expectations.
Adjusted revenue grew 5% to $51.5bn and HSBC has achieved $6.1bn of annual savings since 2015.
The annual dividend was maintained at $0.51 per share. Share buybacks will be performed as and when appropriate. Over 75% of HSBC’s profits now come from Asia.
The share price fell 4% in early morning trading.
Hargreaves Lansdown senior analyst Laith Khalaf: “Rising interest rates and a thriving global economy have helped HSBC to post a healthy increase in profits in 2017. However the market was expecting more, and has consequently marked down the share price. That’s not going to help the Footsie, given the gravitational pull HSBC exerts on the index.
“Revenues have risen faster than costs across HSBC’s three core businesses, and when you’re as big as HSBC, that leaves you with some pretty big numbers in the bottom line. HSBC has stripped out $6.1bn of annual costs since 2015, that’s the size of a big FTSE 250 company.
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