HSBC Plunges After Missing Profit Estimates on Revenue Drop
- Stock falls 6.8% in London trading, most since August 2015
- Stock buyback increased by $1 billion, CEO says more may come
HSBC Reports Wider Fourth-Quarter Losses
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HSBC Holdings Plc dropped the most in 18 months in London trading after reporting fourth-quarter profit that missed estimates on a surprise drop in revenue, which it warned could fall again this year.
HSBC reported a $3.4 billion pretax loss for the quarter that it blamed on slowing growth in its core markets of Hong Kong and the U.K., while its adjusted profit fell $1.2 billion short of analyst estimates. The lender said it will buy back $1 billion of stock in the first half and signaled it may repurchase more later this year.