HSBC tumbles as profits sink - UPDATE

Shares in banking giant HSBC took a tumble on Wednesday after the firm saw a massive 36% drop in underlying pre-tax profits in the third quarter and warned of "very challenging" global economic conditions.

Shares in banking giant HSBC took a tumble on Wednesday after the firm saw a massive 36% drop in underlying pre-tax profits in the third quarter and warned of "very challenging" global economic conditions.

For the three months to the end of September, the figure fell from $4.6bn to $3bn, some 37% below Citi's forecasts, mainly due to falling revenues in investment banking, an adverse movement in its hedging strategy of $0.7bn. Nomura had expected a figure closer to $4.3bn.

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