Summary Box: HSBC earnings disappoint

AP News
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Posted: Feb 27, 2012 1:50 PM
Summary Box: HSBC earnings disappoint

NOT GOOD ENOUGH: Buoyant trading in Asia helped HSBC Holdings report a 28 percent increase in full-year profit Monday, but the bank disappointed investors as costs rose and underlying profit declined.

THE ACCOUNTING: 2011 Profit was $16.8 billion, up from $13.2 billion, a result flattered by a $4.2 billion accounting gain on its debt. Pretax profit fell by $1.2 billion.

RESTRUCTURING: HSBC closed or sold 16 businesses in 2011 and three more this year. It is selling its credit card and retail services business in the U.S. while running down the portfolio acquired in its takeover of Household Finance.