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

[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