Annual pretax profit jumps 78 but misses estimates
Shares slide 7
HSBC announces fresh 2 billion share buyback
CEO pay doubled in 2023 from a year earlier

HONG KONGLONDON, Feb 21 Reuters HSBC Holdings on Wednesday reported a 3 billion charge on its stake in a Chinese bank amid mounting bad loans in the world39;s secondlargest economy, taking the shine off a record annual profit.

Shares in the British lender slid as much as 7 in early London trade against a broadly flat FTSE index, heading for their worst singleday drop since the COVID19 pandemic erupted in March 2020 as investors also noted higher costs.

The share price plunge came despite the bank announcing a new 2 billion buyback, an annual dividend of 0.61 per share and the intention to pay a special dividend of 0.21 per share once it completes the sale of its Canada business.

The negative market reaction despite the record profit and chunky payouts highlights the challenge Asiafocused HSBC faces in matching investors39; skyhigh hopes, as it grapples with China39;s weaker than expected economic recovery.

The bank39;s 2023 pretax profit jumped 78 to 30.3 billion, but still missed a consensus estimate of 34.1 billion due largely to the unexpected China writedown.

HSBC39;s costs also grew 6 in 2023, more than it had forecast, due to the impact of higherthanexpected bank levies in the U.S. and Britain. It also said costs would grow a further 5 in 2024, as it grapples with inflation while investing in its…