HSBC shares slump almost 5% on earnings disappointment

HSBC shares have fallen almost 5% after full-year results failed to meet market expectations.

The bank reported a 9% rise in pre-tax profits to $22.6bn, short of the expected $24.6bn. That prompted a sharp decline in its shares, which fell as much as 4.6% to 625p in early trading. The stock recovered slightly to trade 3.4% lower at 632p shortly before midday. At $4bn, HSBC's pre-tax profits for the fourth quarter were down from $4.5bn in Q3 and $4.4bn in Q4 2012. The bank admitted it had not met all of its targets, in part due to "continuing customer redress" in the UK. "Our reported cost efficiency ratio of 59.6% and return on equity of 9.2% in 2013 were both outside ou...