HSBC saw its stock market valuation plummet by more than £5bn after reporting lower than expected profits and warning of regulatory risks in its full year results yesterday.
Prior to releasing its results, HSBC’s share price stood at 610p per share at the start of trading yesterday, but had since fallen 5.6 per cent to 576p per share as of 9am today, taking more than £5bn off the company’s value.
Pre-tax profits fell 17 per cent from £14.7bn in 2013 to £12.2bn last year, while the bank was also forced to set aside an additional £910m for customer redress.
HSBC is also facing regulatory investigations over claims it supported more than 1,000 UK customers in dodging tax bills between 2005 and 2007, with Swiss police last week raiding the bank’s Geneva offices.
Group chairman Douglas Flint said yesterday he “deeply regrets and apologises for” the failures within the Swiss private banking arm.