The market expectation is for US$21.4 billion (HK$166.4 billion) in profit before tax, according to Bloomberg.
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Last year, Asia represented 83.5 percent of global pre-tax profit for HSBC, a larger portion than a year earlier and a sign that the bank’s future growth is tied to the region’s.
Also, provisions for bad debts are seen at US$1 billion in the past quarter compared with a quarterly average of US$700 million in the first nine months, Goldman Sachs said. The figures were also hit by restructuring costs the bank is undertaking to achieve cost savings of between $4.5 billion (£3.15 billion) and $5 billion.
The bank, which is reining in costs as a result of its higher regulatory burden, said in its annual report Chief Executive Stuart Gulliver’s total pay had fallen to 7.34 million pounds ($10.48 million) from 7.62 million pounds a year earlier.
Adjusted pretax profit fell to US$1.9 billion in the fourth quarter from US$2.9 billion a year earlier.
Global banking giant HSBC says its net profit for 2015 dropped by 1.2 percent to $13.52 billion from the previous yeaThe bank said net profit dropped 1.2 percent to $13.52 billion from the previous year.
Gulliver’s “pivot to Asia” strategy is created to shift billions of dollars’ worth of risk-weighted assets into the Pearl River Delta, the central part of Guangdong province on China’s south coast, in an effort to improve returns.
The results come just days after the bank chose to keep its headquarters in London rather than moving to Hong Kong, the hub which contributes to the majority of its profits.
Against a tough backdrop, the financial performance in 2015 was “broadly satisfactory”, added chairman Douglas Flint.
The bank past year announced a radical overhaul of its operations to cut spending that included shedding some 50,000 jobs worldwide and exiting some unprofitable businesses.
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“We have therefore made a decision to retain and restructure our Turkish operations, maintaining our wholesale banking business and refocusing our retail banking network”, Gulliver said Monday.
