HSBC’s 2016 pre-tax profit falls 62 percent on one-time charges
LONDON – HSBC Holdings’ 2016 pre-tax profit fell 62 percent, 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 $7.1 billion compared with $18.87 billion the year before and below the average analyst estimate of $14.4 billion according to Thomson Reuters data.
The 2016 profit reflected a $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 percent against a 28 percent increase in the STOXX Europe index of 600 banks as the bank benefited from appreciation of the US dollar and stronger capital levels. -Reuters