HSBC’s Profit Sinks on $3 Billion Charge at Chinese Bank

  • CEO Quinn says environment remains challenging, uncertain
  • Lender announces $2 billion buyback; shares tumble in London
WATCH: “We have strong confidence in the China economy.” Quinn discusses HSBC’s unprecedented $3 billion charge on BoCom.Source: Bloomberg
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HSBC Holdings Plc reported fourth-quarter profit fell 80% after taking unexpected charges on holdings in a Chinese bank and from selling its French retail operations. Shares slid in London.

Pretax profit fell to $1 billion in the final three months of last year from $5.05 billion in the year-earlier period, the London-headquartered bank said in a statement. The lender took a $3 billion charge on its holding in Bank of Communications Co. and $2 billion on its French sale.