HSBC full year 2012 results miss analysts' expectations

FTSE 100-listed high street bank HSBC has reported a profit before tax of 20.6bn dollars (13.73bn pounds), down six per cent on 2011, including 5.2bn dollars of adverse fair value movements on own debt.

FTSE 100-listed high street bank HSBC has reported a profit before tax of 20.6bn dollars (13.73bn pounds), down six per cent on 2011, including 5.2bn dollars of adverse fair value movements on own debt.

The consensus estimate had been calling for a profit before tax of £14.272bn.

The underlying profit before tax was valued at $16.4bn, up 18% on 2011 levels.

The group reported a record year in commercial banking, with reported profit before tax of $8.5bn, up 7%. Underlying revenues for the group were valued at $63.5bn (£42.3bn), up 7%. This was slightly below consensus expectations.

Earnings per share of $0.74 was recorded, down 20% on 2011.

Estimated Basel III end point common equity tier one ratio was recorded at 10.3% - as expected by some analysts - post-2013 management actions and 9.0% at the end 2012. This was in line with expectations.

A dividend declared in respect of 2012 was valued at $0.45 per ordinary share, up 10% on 2011, with a fourth interim dividend for 2012 of$0.18 per ordinary share. Total dividends of $8.3bn were reported.

HSBC reported that its first three interim dividends for 2013 were planned to be $0.10 per ordinary share, up 11%.

CEO: Record year achieved in commercial bankingStuart Gulliver, Group Chief Executive Officer of HSBC, said: "HSBC made significant progress in 2012. First and foremost, we grew our business. We increased revenues, performed well in most faster-growing markets and enjoyed a record year in commercial banking.

"We've made the business easier to manage and control by disposing of non-core businesses and surpassed our sustainable savings target. We also agreed a settlement with the US and UK authorities in respect of our past anti-money laundering and sanctions failings.

"Based on our current understanding of the capital rules we are extremely well-placed with regard to Basel III compliance, re-establishing our position as one of the best capitalised banks in the world. This provides a firm base on which to keep growing the business organically and allows us to increase dividends to $8.3bn."

HSBC's share price was down 1.81% to 714.60p at 08:37 on Monday morning.

MF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Properties for sale for around £400,000
Houses for sale

Properties for sale for around £400,000

From a converted church in Banffshire with views towards the Cairngorms National Park, to a period property in the Georgian market town of Beverley, e…
2 Apr 2021
US inflation is rising – but it’s not enough to rattle markets yet
Inflation

US inflation is rising – but it’s not enough to rattle markets yet

The latest US inflation figures showed that consumer prices are rising more rapidly than expected. But markets shrugged. John Stepek asks why, and wha…
14 Apr 2021