HSBC 2015 profit nearly flat, Bovis profit jumps as prices rise

London’s FTSE 100 is seen starting 32 points higher than Friday’s close at 5,982.

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HSBC has posted relatively flat profit before tax after being hit by rising operating expenses.

The FTSE 100 bank reported profit before tax of $18.9bn (£13.3bn), up from $18.7bn in 2014.

However adjusted profit before tax dropped from $22.0bn to $20.4bn.

“We enter 2016 with a clear strategy and with a plan for its implementation already well under way,” said Chairman Douglas Flint.

“Our diversified business model and balance sheet strength form the foundation for our future progress, and position HSBC well to deal with today's challenging economic and financial conditions.”

Associated British Foods was banking on a decline in the pound on Monday, as it prepared the market for a dip in earnings in the current first half.

The company's board said it expected some progress in adjusted operating profit for the group in the current period, though adjusted earnings per share were expected to be slightly lower.

ABF said the underlying trading outlook for the full year remained unchanged, with the weakening of sterling in recent weeks - particularly against the euro - easing the effect of currency translation on the year's results, to £10mfrom £25m.

"We now expect only a marginal decline in adjusted earnings per share for the group, for the full year," its board said in a statement.

Bovis Homes reported a 20% rise in full year pre-tax profit and hiked its dividend as revenue grew and the housebuilder sounded an upbeat note on 2016.

For the year ended 31 December, pre-tax profit came in at £160.1m from 133.5m in 2014, on revenue of £946.5m, up 17%.

Chief executive David Ritchie said: “We have delivered record profit driven by another year of record volume. We have invested well during 2015 in new consented land and achieved a strong level of conversion from our strategic land bank.

“While it has been a time of operational challenge with fast moving market conditions, we are delivering our strategic growth plan and have evolved our management and business structure at the start of 2016 to support further growth.”

In the press

The bosses of about half of Britain’s 100 biggest companies are to sign a letter backing David Cameron in his fight to keep the country in the EU in the referendum in June that will shape the future of the UK. As Tory opposition to the prime minister’s strategy mounted, Downing Street rallied the backing of corporate leaders at companies including Shell, BAE Systems, BT and Rio Tinto, who will argue in the letter that Britain is “stronger, safer and better off” in a reformed EU. – Financial Times

MasterCard will bring facial recognition payment services dubbed “selfie pay” to the UK as part of a range of new services designed to improve identity verification for mobile phone payments. British users will be able to scan fingerprints or snap selfies to validate their identities, in a system designed to let them complete an online purchase without the need for pin codes, passwords or confirmation codes. – Financial Times

Even London’s law firms are feeling the cost of high rents, with many of the biggest downsizing their offices last year. Rents for the capital’s 100 largest law firms rose 7pc last year to an average of £43 per square foot, according to data from real estate advisor CBRE. Many firms have reduced space and reorganised their offices in order to offset this rise, the research found, resulting in 63 relocations last year – 19pc higher than in 2014. – Telegraph

Most of the actions of central bankers – immensely powerful individuals who steer whole economies – pass largely unnoticed in everyday life. Late last year, however, the customers of one small Swiss bank were among the first to confront the problems these monetary policymakers are now facing. Alternative Bank Schweiz (ABS) was the first lender in the world to pass on the costs of “negative interest rates” to its customers. As central banks run out of traditional tools to tackle tepid growth and low inflation, negative rates have been the latest weapon of central banks. – Telegraph

US close

US stocks finished mixed on Friday as oil prices dropped and US inflation edged closer towards the Federal Reserve's 2% target.

The Dow Jones Industrial fell 0.13% but the S&P 500 and the Nasdaq rose 0.37% and 0.1%, respectively.

Oil prices slid after data from the Energy Information Administration on Thursday showed US crude inventories rose by 2.1m barrels last week to a peak of 504.1m barrels. It marked the third week of record highs in the past month and added to concerns about the global oversupply.