HSBC Holdings PLC posted its annual profit on Tuesday, showing a 33% decline and falling below analyst forecasts. The decline was caused by a $7.3 billion goodwill impairment linked to its commercial banking and investment banking businesses in Europe.
HSBC reported a $13.35 billion profit before tax for 2019, compared to $19.89 billion the previous year. HSBC, Europe’s largest bank by assets, makes the majority of its revenues in Asia.
The annual profit was announced by interim Chief Executive Noel Quinn, along with the bank’s strategy update. The figures fell short of the $20.03 billion brokerage estimates on average as gathered by the bank.
HSBC extends in more than fifty countries across four regions: Europe, Asia, North America, and the Middle East. Asia accounts to nearly half of the bank’s revenue and about 90% of its profit.