HSBC shares sink 3% after pre-tax annual profit misses estimates on impairment costs
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HSBC's full-year 2023 pre-tax profit missed analysts' estimates, hit by impairment costs linked to the London-based lender's stake in a Chinese bank — sinking its shares by as much as 3%.
Europe's largest bank by assets saw its pre-tax profit climb about 78% to $30.3 billion in 2023 from a year ago, according to its statement released Wednesday during the mid-day trading break in Hong Kong. That missed median estimates of $34.06 billion from analysts tracked by LSEG.
Chief Executive Noel Quinn also announced an additional share buyback of up to $2 billion and the highest full-year dividend per share since 2008. With three share buy-backs in 2023 totaling $7 billion, Quinn said the bank returned $19 billion to shareholders last year.
The bank suffered a «valuation adjustment» of $3 billion on its stake in Bank of Communications, Quinn said.
HSBC's Hong Kong shares reversed gains of about 1% after trading resumed, falling as much as 3.2% in early afternoon trade. The benchmark Hang Seng Index was up nearly 3%.
Here are the other highlights of the bank's full year 2023 financial report card:
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