HSBC Shares Tumble on Cautious Outlook, Surprise CFO Change
- Bank reduces 2023 NII guidance on funding costs, weaker pound
- UK lender’s shares decline sharply in London trading
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HSBC Holdings Plc shares dropped after the bank gave a cautious outlook and reported higher-than-expected charges for possible loan losses in the third quarter, driving concerns about the economic pain a looming downturn will bring.
While the London-headquartered bank joined other global lenders in posting profit that beat analyst estimates thanks to a rise in net interest income, the firm lowered its expected NII guidance for 2023, according to a statement Tuesday. It is now expected to be at least $36 billion for 2023, down from $37 billion because of higher funding costs and the pound’s fall against the dollar.