"HSBC’s annual results today were expected to make for uncomfortable reading, but few – if anybody - expected profits to be down more than 30%."
The Group's annual profit before tax fell by 33% to $13.3bn (£10.3bn) and the Bank is now aiming to reduce costs by $4.5bn (£3.5bn) as part of a major restructure.
The fall in profits is largely due to write-offs relating to its investment and commercial banking operations. It also issued a warning over the coronavirus outbreak, which it said could impact its performance in 2020.
The Bank's chief executive, Noel Quinn, said HSBC would reduce its workforce from 235,000 to around 200,000 over the next three years.
In the UK, HSBC reported profit before tax of £1.01bn in 2019. Its H2 profits came in at £394m, 36% lower than in H1 and 63% lower than in H2 2018.
HSBC UK said the fall in profits was driven by the negative impact of significant items in both revenue and operating expenses, including higher UK customer redress provisions of £490m and an increase of £52m in restructuring and other related costs.
Adam Vettese, analyst at multi-asset investment platform eToro, said: “HSBC’s annual results today were expected to make for uncomfortable reading, but few – if anybody - expected profits to be down more than 30%.
“The bank has taken drastic measures today, including plans to shed £77 billion of assets, 35,000 jobs and slashing the size of its investment bank, as it bids to return to growth.
“But there is no guarantee that these measures will make HSBC, which has trailed its rivals for some time, the competitive bank it is craving to become in the short-term at least, particularly with the current weakness in Asia, its key market."
