HSBC Shares Plunge on Missed 2013 Profit Expectations

HSBC shares plunged on the market open after the group reported a lower than expected rise in profits for 2013.

The HSBC stock price led the losers on the FTSE100 by falling over 3.5% to 630.89p after the bank reported profit before tax rising by only 9% in 2013 at $22.6m (£13.6m, €16.4m), despite analysts expecting a rise to $24bn.

"Our performance in 2013 reflects the strategic measures we have taken over the past three years. Today the Group is leaner and simpler than in 2011 with strong potential for growth," said Stuart Gulliver, CEO at HSBC.

"In 2013 we grew underlying profits by $6.3bn, generated $10.1bn in core tier 1 capital, achieved an additional $1.5bn of sustainable cost-savings and declared $9.2bn in dividends in respect of the year.

"Our strong capital generation continues to support our progressive dividend policy and reinforces HSBC's status as one of the best capitalised banks in the world."

HSBC also added that there could be "choppy markets" in 2014 due to volatility in the emerging markets.