HSBC Takes $450 Million Hit on China Property, Plans Buyback
- Fourth-quarter charge primarily against Chinese CRE exposure
- Lender posts 79% jump in adjusted pretax profit for quarter
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HSBC Holdings Plc took a charge relating to its Chinese commercial real estate exposure and warned of a weaker performance in its wealth business in Asia, blemishing fourth-quarter results that saw the lender boost plans to return billions of dollars to investors.
The London-based bank will initiate a share buyback of as much as $1 billion, on top of an earlier $2 billion program, according to an earnings statement on Tuesday. The lender posted a 79% increase in adjusted pretax profit to about $4 billion in the fourth quarter, roughly in line with company-compiled estimates.