The HSBC 2018 results are in and the global lender missed expectations due to a “challenging external environment” in the fourth quarter.

Overall, the bank reported profit before tax of $19.9bn in 2018, 16% higher than the previous year’s $17.2bn. In addition, reported revenue was $53.8bn and 5% higher than in 2017. This was put down to growth primarily in Asia.

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Retail Banking and Wealth Management saw adjusted pre-tax profit of $7.08bn, up from $6.48bn the year previous. The only region that didn’t turn a profit in 2018 was Europe which reported a $815m loss.

HSBC also saw some improvement in digital offerings with 44% of its retail banking and wealth management customers now using digital services.

Employee numbers also rose by 6,530 over the year to hit 235,217.

John Flint, group chief executive of HSBC, said: “These are good results that demonstrate progress against the plan that I outlined in June 2018. Profits and revenue were both up despite a challenging fourth quarter, and our return on tangible equity is significantly higher than in 2017. This is an encouraging first step towards meeting our return on tangible equity target of more than 11% by 2020.”

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With regards to the UK, he added: ” Our Group revenue performance in January was ahead of our plan for the month and actual credit performance remained robust, albeit with some softening of credit performance in the UK. We continue to prepare for the UK’s departure from the EU in order to provide continuity for our customers in the UK and mainland Europe. Our well-established universal bank in France gives us a major advantage in this regard. Our immediate priority is to help our customers manage the present uncertainty.

Mark E Tucker, Group Chairman, said: “Our ability to meet our targets depends on being able to help our customers manage the present uncertainty and capture the opportunities that unquestionably exist.

“HSBC is in a strong position. Our performance in 2018 demonstrated the underlying health of the business and the potential of the strategy that John Flint, our Group Chief Executive, announced in June.

“Despite a challenging external environment in the fourth quarter, all of our global businesses delivered increased profits and the Group achieved a higher return on tangible equity in 2018.”