Profit slump expected for HSBC this quarter
HSBC is expected to report its profits have plunged when it releases its third quarter results in the early hours of tomorrow morning.
Analysts have predicted the banking giant, which is listed in Hong Kong, New York and Paris as well as London, will announce statutory pre-tax profits of $2.4bn (£1.9bn), down 60 per cent compared with the $6.1bn reported for the same period the year before.
Revenues are also expected to have dropped off, with analysts forecasting a fall to $11.3bn, down 25 per cent compared with the prior year's $15.1bn.
During the time period, the bank has been hit with a $1.7bn loss from the sale of its business in Brazil, which explains some of the drag on the bottom line figure. Expectations for adjusted pre-tax profits are much more optimistic, with analysts predicting $5.1bn, down just slightly from $5.5bn the year before.
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Looking ahead to the full year, analysts are expecting the bank will announced statutory profits before tax of $14.4bn, along with revenues of $53bn.
Investors are also likely to be looking for clues in tomorrow's results on who will be replacing chairman Douglas Flint and chief executive Stuart Gulliver. Flint confirmed earlier this year that he would be leaving the lender in 2017, with Gulliver planning to part ways not long after that.