HSBC Says Global Tensions Mean Uncertainty After Profit Misses By Harry Wilson and Alfred Liu February 19, 2019 Investment bank revenue drops as CEO vows to keep lid on costs Lack of a new buyback program also disappoints some analysts HSBC Holdings Plc warned that geopolitical uncertainty in China, the U.S. and the U.K. has made the prognosis for the year far less predictable after fourth-quarter earnings fell short of analysts¡¯ estimates. Chief Executive Officer John Flint has also vowed to keep a keener eye on costs after a disappointing quarter capped his first year in charge of Europe¡¯s largest bank. Like its rivals, HSBC, which gets most of its business in Asia, was also hit by the meltdown in financial markets, which pushed investment bank revenues lower. ¡°There are more risks to global economic growth than this time last year, and we remain alive and responsive to all possibilities,¡± Chairman Mark Tucker said. ¡°The system of global trade remains subject to political pressure, and differences between China and the U.S. will likely continue to inform sentiment in 2019.¡± Pressure is growing on HSBC¡¯s management to improve returns by repurchasing stock, and the bank said it¡¯s committed to its previous policy of returning capital to shareholders. However, HSBC stopped short of announcing a new buyback program, which analysts at Jefferies called a "notable disappointment." ¡°Prospects for enhanced capital repatriation against slower growth prospects have formed the key part of our constructive stance,¡± the Jefferies analysts, including Joseph Dickerson, said in a note. ¡°This aspect of our thesis is clearly not playing out.¡± ¡°We are clearly going to moderate the pace of some of our investment,¡± Flint also said in an interview, though he didn¡¯t provide details, saying the bank is ¡°still having those conversations.¡± HSBC won¡¯t have to resort to any major job cuts to keep a lid on expenses, he said. Selected articles from Bloomberg Adjusted pretax profit, which excludes