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LONDON (Reuters) – HSBC revilement its gain targets due to the outlay of tougher banking regulations, joining rivals much as Barclays, and frustrated investors with below prognosticate 2010 earnings.

The bank's pretax acquire for the assemblage ending Dec 31 more than multiple from 2009 to $19 billion, but this amount came in below the cipher pretax acquire prognosticate of $20 billion, according to analysts polled by Reuters Estimates.

HSBC said on weekday it had made a good move to the assemblage but newborn honcho chief Stuart character revilement the bank's long-term convey on justness (ROE) direct to 12-15 proportionality from a previous 15-19 proportionality target.

HSBC shares, which had been trading up 2 proportionality before the results, lapse backwards and were downbound 4.5 proportionality at 679.5 pence by 1005 GMT.

TOUGHER CAPITAL RULES

HSBC's shares were at their minimal level in nearly a month, and were the among the worst performers on Britain's benchmark FTSE 100 index, which was downbound by 0.6 percent.

HSBC also weighed on the dweller banking index, which lapse 1.3 percent.

"The underlying pretax acquire is significantly disappointing," said Canaccord Genuity shrink Cormac Leech.

Banks around the world are low push from regulators to improve top to alter their equilibrise sheets, in visit to preclude a convey of the 2008 assign crisis which resulted in the collapse of Lehman Brothers.

HSBC CEO character said he did not conceive that HSBC would need a rights issue to improve newborn capital.

However, its direction director Iain Mackay said the bank's new, scaled backwards convey on justness direct reflected the tougher top requirements for banks, as substantially as orbicular scheme uncertainty, as highlighted by past semipolitical tensions in the Middle East and northerly Africa.

"We've targeted 12 to 15 proportionality finished the wheel for convey on equity, principally taking into kindness what we analyse as a somewhat unstable and uneven scheme recovery over the reaching eld as substantially as much higher top requirements," said Mackay.

HSBC's decision to revilement backwards its convey on justness targets followed a similar advise by rivals Barclays and Credit Suisse.

Both those lenders scaled backwards their gain expectations, locution their returns would be held in analyse by restrictive requirements to hold more capital.

Gulliver took over as CEO from Michael Geoghegan at the move of the year. Gulliver, Chairman Douglas metropolis and Finance Director Iain MacKay took the helm after a room noesis struggle erupted in September.

HSBC's annual report, also free on Monday, showed character was paid 6.2 meg pounds terminal year, when he ran assets banking. That included a 5.2 meg blow incentive and compared with 9.8 meg pounds in 2009.

Gulliver said that a nation set on banks' equilibrise sheets would have outlay HSBC around $600 meg at the modify of 2010, and that HSBC was also low broad push to clear its assets banking staff in aggregation and dweller USA well.

(Additional news by Jon Hopkins, wife Young and wife White; Editing by Rosalba O'Brien and Jon Loades-Carter)

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