HSBC is in the red due to impairments

By Sherry Qin

LONDON (Dow Jones)–Impairments pushed HSBC Holdings into the red in the fourth quarter of 2023. The Asia-focused financial institution said it recorded an impairment charge of $3.0 billion related to its stake in Bank of Communications. This resulted in a net loss of $153 million in the final quarter, after HSBC had earned $4.38 billion in the same period last year. Analysts had expected a quarterly profit of $2.80 billion, according to the Visible Alpha consensus.

Pre-tax profit fell to $977 million from $5.05 billion, significantly missing the consensus estimate of $4.55 billion. Net interest income fell to $8.28 from $8.99 billion. That is also less than analysts had estimated on average at $9.03 billion.

HSBC also announced it would buy back shares worth up to $2 billion. The share buyback is expected to be completed by the announcement of the first quarter figures.

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(END) Dow Jones Newswires

February 21, 2024 00:19 ET (05:19 GMT)

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