HSBC shares dive over 5% as profits down $1.6bn

Shares in HSBC were down over 5% mid-morning after a trading update revealed underlying pre-tax profits fell from $4.6bn (£2.86bn) in Q3 2010 to $3bn for the same period this year.

As group chief executive Stuart Gulliver warned banks face "significant headwinds", the stocks fell 5.17% to 509.7p. The 52-week low is 466.5p.  The fall in profits was blamed on decreased revenues in its global banking and markets division, retreats of $700m in non-qualifying hedges and an increase in loan impairment charges, primarily in North America. Gulliver said: "The sector faces significant headwinds. The continuing macroeconomic, regulatory and political uncertainty, particularly in Europe, adversely affected our industry's performance in the quarter. Against this backdrop, H...