HSBC profit falls 86% on Brazil disposal

hsbc tower

Pre-tax profit at Europe’s largest bank dropped to $843m (£678m), down from $6.1bn in the same period a year ago, reports The BBC.

HSBC took a $1.7bn loss on the sale of its Brazilian unit, and it also pointed to customer compensation in America and currency moves for the fall in profits.

But adjusted profit, which excluded one-off costs, rose 7 per cent to $5.6bn, higher than analysts had expected.

HSBC is the last of the UK’s major banks to report quarterly results, after Lloyds, RBS and Barclays posted better-than-expected profits for the period.

Chief executive Stuart Gulliver said: “Reported profits were down, but adjusted profits were higher than last year’s third quarter in all four global businesses and four out of five regions.”

David Cumming, head of UK equities at Standard Life, said HSBC’s results were “slightly above consensus”, with costs a bit better than expected and its investment banking reasonably strong.

The bigger question for investors, he said, was who would replace Mr Gulliver as chief executive and chairman Douglas Flint.

“The key here is we get some outside blood into the organisation to liven up what is perceived as a relatively slow-moving and bureaucratic culture,” Mr Cumming said.

HSBC shares rose 2 per cent in Hong Kong after the results were published.