HSBC: Bank's pre-tax profits soar fuelled by high interest rates

Europe's biggest bank, HSBC, has posted an almost 80% jump in its pre-tax profit which rose to $30.3bn (£24bn) in 2023, fuelled by high interest rates.

It comes after central banks around the world raised interest rates in last 18 months to help curb rising prices.

But a slowdown in China's economy has meant that the bank's profit was not as high as expected.

HSBC makes most of its profits in Asia, especially China and Hong Kong.

China, the world's second biggest economy is experiencing falling prices, known as deflation, which tends to discourage consumers from spending as they expect items to be cheaper in the future.

Investors have been closely watching HSBC's exposure to China's property sector, which has been engulfed in crisis since 2020.

Last month, a court in Hong Kong ordered the liquidation of debt-laden property giant Evergrande.

The Chinese government is under increasing pressure to announce more support for the economy.

Rival Asia-focused bank Standard Chartered is due to report its financial results later this week.