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Business

HSBC earnings slump on Brazil writedown

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Opening sequence

Business

HSBC earnings slump on Brazil writedown

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COMING UP:HSBC earnings slump on Brazil writedown

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Transcript

00:00:01
>> Earnings taking a tumble at HSBC. Pre-tax profits down 86% at the giant British lender. Reuters banking correspondent Lawrence White has been going through the numbers.>> So the fall in profit for HSBC was driven by the loss from the disposal of their Brazilian business, which they've sold.
00:00:20
They've had some adverse foreign exchange effects. And just more broadly, the very challenging environment that banks are finding with interest rates as low as they are.>> HSBC is the last of the major British banks to report earnings. Lloyds, Barclays, and RBS, all doing better than expected following June's vote to leave the EU.
00:00:38
Dive down below the headline figure and that seems to be the case for HSBC as well.>> So HSBC is coping with Brexit reasonably well. Chief Executive Stuart Gulliver told me on a call this morning that they've seen little impact on the bank, other than a slight dip in small business borrowing.
00:00:54
But he did warn that next year they expect things to be more challenging. For now Britain's big lenders look more robust than expected. But with growth forecast too slow, inflation on the rise and interest rates stuck to the floor, the next three months could be a whole lot tougher.