HSBC Quarterly Profit Stung by Higher Costs, China Charge

HSBC Holdings Plc shareholders wiped out about $9.4 billion of the firm’s market capitalization after quarterly earnings fell short of expectations as Chief Executive Officer Georges Elhedery pushes through an increasingly expensive restructuring of the firm.

The bank said expenses for the second quarter jumped 10% to $8.9 billion, with HSBC blaming the rise on its ongoing efforts to simplify the firm. The London-headquartered bank also recorded a $2.1 billion impairment linked to its stake in Bank of Communications Co.