HSBC shares fall 2% as profits down 6% to $20.6bn

Shares in banking giant HSBC fell 2% in early trading today as it reported profit before tax was $20.6bn(£14bn) in 2012, down 6% on 2011.

The bank had been expected to post profits of $23.4bn, as it enters the final year of its turnaround plan. The 2012 results include a $5.2bn accountancy write-down on its debt. It also paid $1.9bn of fines and penalties as part of the settlement with US authorities and the FSA, and additional provisions of $1.4bn in respect of UK customer redress in 2012. Meanwhile, underlying profit before tax rose 18% on 2011 to $16.4bn and the group reported a record year for commercial banking, with profit before tax of $8.5bn, up 7%. Underlying revenues for the group were $63.5bn, up 7%. This...