HSBC warns of choppy emerging markets

Published Feb 24, 2014

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London - HSBC reported a 9 percent increase in annual pretax profit on Monday, which missed market expectations, and warned of greater volatility in emerging markets this year, sending its stock price sharply lower.

Europe's largest bank has axed tens of thousands of jobs and sold or closed 60 businesses over the past three years to cut costs but is under pressure to show how it can boost revenues in the face of slowing growth.

Chief executive Stuart Gulliver's warning of choppy markets this year sent HSBC's shares down more than 4 percent in mid-morning trade.

The bank reported a 2013 pretax profit of $22.6 billion, up from $20.6 billion in 2012 but below the average forecast of $24.3 billion in a Thomson Reuters poll.

Revenues fell 5 percent, partly reflecting the disposal of some businesses.

Operating expenses dropped by $4.3 billion last year, below the $5 billion drop anticipated by analysts. - Reuters

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