HSBC shares slide after missing estimates

HSBC is the biggest loser on the London market today after the bank’s increase in profit failed to meet analysts' estimates.

HSBC is trading at 725p, down 4%, after announcing a first half pre-tax profit of £9.2 billion. Although this is an increase of 10% compared with the same period last year, analysts were expecting an increase of 15%.

The bank also revealed a drop in revenue of 7% year-on-year, versus the market consensus for a decline of 6%.

With HSBC particularly Asian-focused, the slowdown in China has had an impact on its bottom line, and the bank has had a cost-cutting programme in place for the past two years. Since the start of this year HSBC has disposed of or closed 11 businesses, to reach a total of 54, with the aim of stripping out non-core assets.

Despite losing ground today, HSBC’s share price is still up 30% this year, with the bank helped by not overstretching itself like some of its UK competitors prior to the global credit crunch.

HSBC (DFB) chart

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