hsbc mena profit falls on higher operating expenses
Last Updated : GMT 05:21:58
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 05:21:58
Arab Today, arab today

HSBC Mena profit falls on higher operating expenses

Arab Today, arab today

Arab Today, arab today HSBC Mena profit falls on higher operating expenses

HSBC Banks
Dubai - ArabToday

HSBC, Europe’s biggest bank by assets, said on Tuesday that its fourth-quarter profit in the Middle East and North Africa dropped by 29.6 per cent as unspecified operating expenses outweighed gains in net interest income.
The bank also reported a steep global loss that sent its share price tumbling.
In the Mena region, profit before tax slipped to US$195 million in the three months to December 31, reversing a profit of $277m in the same quarter a year earlier.
Net interest income rose by 10.6 per cent to $426m in the latest fourth quarter compared with $385m in the corresponding period of 2015. The profit from lending to individuals rose 10.1 per cent to $163m in the quarter from $148m in the same time frame in 2015.
Operating expenses rose 24.4 per cent to $377m in the fourth quarter compared with $303m a year earlier.
This comes even as the bank’s chief executive, Stuart Gulliver, is battling to reduce expenses.
HSBC representatives were not immediately available to explain the reason for the sharp rise in Mena operating expenses.
HSBC follows many other banks in the region that have reported lacklustre earnings for the fourth quarter. The dramatic drop in the price of oil, which is down by half from its peak in the summer of 2014, has reduced the demand for loans and increased the level of debt defaults.
For all its business worldwide, HSBC reported a $3.4 billion pretax loss for the quarter. The bank blamed slowing growth in its core markets of Hong Kong and the United Kingdom, while its adjusted profit fell $1.2bn short of analyst estimates. The lender said it would buy back $1bn of stock in the first half and signalled it may repurchase more later this year.
Besides trying to cut costs, Mr Gulliver is paring HSBC’s sprawling global footprint after five years of declining revenue.
The bank has increased its cost-cutting target by $1bn to $6bn of savings, while cautioning it faces more than $3bn of revenue headwinds in 2017, including currency movements and record-low interest rates in the UK. Executives also warned that the US president Donald Trump’s protectionist stance and Brexit could damage their business.
"We anticipate new challenges in 2017 from geopolitical developments, heightened trade barriers and regulatory uncertainty," Mr Gulliver said.
The bank’s shares were down 6.9 per cent on Tuesday, their worst day since August 2015, and were trading at 662.50 pence at 12.50pm in London. Still, the shares have risen by about 46 per cent since the UK voted to leave the European Union on June 23, the most of any major European bank.
HSBC has now lost about $20bn of revenue since Mr Gulliver took over in 2011. Pretax profit on an adjusted basis, which excludes one-time items, jumped 39 per cent to $2.62bn in the fourth quarter, the bank said. That missed the $3.78bn average estimate of six analysts compiled by Bloomberg.
One bright spot for HSBC was that it joined its global peers in benefiting from the surge in fixed-income and currency trading last quarter. Adjusted pretax profit from the global banking and markets division, which houses the investment bank, almost doubled to $1.3bn.

Source: The National

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

hsbc mena profit falls on higher operating expenses hsbc mena profit falls on higher operating expenses

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

hsbc mena profit falls on higher operating expenses hsbc mena profit falls on higher operating expenses

 



Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today For the Variety of Interior Design Styles

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles

GMT 11:55 2016 Sunday ,18 December

6.5-magintude earthquake jolts off Micronesia

GMT 07:38 2016 Tuesday ,13 September

Libya unity government loses third oil port to rivals

GMT 16:00 2017 Saturday ,12 August

Smashbox to launch Be Legendary Triple Tone

GMT 20:23 2017 Tuesday ,19 September

Abi Insoll Fine Jewellery appoints FACETS PR

GMT 06:42 2018 Friday ,05 October

President Vladimir Putin arrives in New Delhi

GMT 11:29 2016 Tuesday ,12 January

India's top court halts bull running festival

GMT 14:14 2017 Thursday ,23 March

UAE Vice President Meets Armenian President

GMT 08:39 2018 Monday ,01 January

Four things to remember on your next trip

GMT 01:42 2016 Thursday ,30 June

Albanian PM calls for European revival

GMT 06:42 2016 Tuesday ,29 March

Hijacked passenger plane lands in Cyprus

GMT 03:47 2017 Saturday ,11 February

UAE and Turkey agree on cooperative mechanisms

GMT 17:41 2017 Wednesday ,11 October

Oil glut going but growth not over a barrel: OPEC

GMT 03:11 2017 Saturday ,25 February

50 Tunisian exhibitors at Gulfood 2017, Dubai

GMT 12:48 2017 Monday ,30 January

Klopp at a low ebb as Chelsea come to town

GMT 09:23 2017 Tuesday ,07 February

Airbnb landlord hit with record fine in Amsterdam
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday