HSBC suffers biggest one-day drop in nearly four years

Bank increases staff bonus pool by 12% despite hit from exposure to China real estate slump

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HSBC shares suffered their biggest one-day drop in nearly four years, after the bank recorded an 80% fall in profits linked to a write down in the value of its stake in a Chinese bank.

Pre-tax profits fell to $1bn (793m) in the final three months of 2023, down from $5bn a year earlier. This was primarily due to a $3bn charge linked to the HSBC's 19% stake in the Bank of Communications in China (BoCom), which it bought in 2004.

This article was amended on 21 February 2024. An earlier version referred to the bonus pool in terms of millions of dollars instead of billions.