HSBC (LON:HSBA) reported a fall in profits for 2018, in part due to the economic downturn in China.
The bank posted profits of $19.9 billion (£15.4 billion) for the year, compared to $17.2 billion in 2017.
Whilst an increase, this proved behind expectations, sending shares lower during Tuesday trading.
The bank was particularly affected by turbulence in the global markets, as well as fears over global trade and Brexit.
Moreover, as most of the Bank’s revenues come from Asian markets, its results were impacted by the economic slowdown in China.
HSBC Chief Executive John Flint commented on the results:
“These are good results that demonstrate progress against the plan that I outlined in June 2018. Profits and revenue were both up despite a challenging fourth quarter, and our return on tangible equity is significantly higher than in 2017. This is an encouraging first step towards meeting our return on tangible equity target of more than 11% by 2020.”
In addition, Mark E Tucker, the group’s chairman said in a statement:
“Our ability to meet our targets depends on being able to help our customers manage the present uncertainty and capture the opportunities that unquestionably exist.”
He added: “HSBC is in a strong position. Our performance in 2018 demonstrated the underlying health of the business and the potential of the strategy that John Flint, our Group Chief Executive, announced in June.”
Shares are currently trading down -3.89% as of 11:09AM (GMT) on the back of the announcement.
