The Business Times

HSBC's 2016 pre-tax profit falls 62% on one-time charges

Published Tue, Feb 21, 2017 · 04:33 AM

[HONG KONG] HSBC Holdings' 2016 pre-tax profit fell 62 per cent, below analysts' estimates, as it grappled with slowing economic growth in its core markets of Hong Kong and Britain and took one-time charges related to some of its businesses.

HSBC reported profit before tax for 2016 of US$7.1 billion compared with US$18.87 billion the year before and below the average analyst estimate of US$14.4 billion according to Thomson Reuters data.

The 2016 profit reflected a US$3.2 billion impairment of goodwill in its global private banking business in Europe and the impact of its sale of operations in Brazil, the bank said in a statement to the stock exchanges on Tuesday.

HSBC's shares have been among the best-performing European bank stocks since Britain voted in June to leave the European Union, climbing 53 per cent against a 28 per cent increase in the STOXX Europe index of 600 banks as the bank benefited from appreciation of the US dollar and stronger capital levels.

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Banking & Finance

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here