HSBC shares plunge after profit misses forecast

London

HSBC Holdings plc dropped the most in 18 months in London trading after reporting fourth-quarter profit that missed estimates on a surprise drop in revenue.

The bank said it will boost cost-cutting measures and extend a stock buyback. Adjusted pretax profit, which excludes one-time items, jumped 39 percent to US$2.62 billion, Europe's largest bank said in a statement on Tuesday. That missed the US$3.78 billion average estimate of six analysts compiled by Bloomberg News.