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HSBC Cuts Profitability Target as Earnings Miss Estimates

HSBC Holdings Plc, Europe’s biggest bank by market value, posted full-year earnings that missed analyst estimates after an “unacceptable” increase in costs, and said it would reduce its profitability target.

Net income more than doubled to $13.2 billion in 2010 from $5.83 billion the previous year, missing the $13.7 billion median estimate of 15 analysts surveyed by Bloomberg. HSBC’s cost-income ratio rose to 55.2 percent from 52 percent as rising staff costs outpaced revenue growth, the London-based bank said in a statement today.