collected by :Tod Hinery
as informed in Like most global banks, HSBC has been struggling to boost profits as it grapples with the Brexit uncertainty.
London — HSBC profits plunged last year on huge writedowns and restructuring charges, the banking group said on Tuesday.
Laith Khalaf, senior analyst at stockbrokers Hargreaves Lansdown, said: “Despite an underwhelming set of full year results, HSBC is making progress in derisking and restructuring.
The London-headquartered bank with a focus on Asia said net profit tumbled to $1.29bn in 2016, down 90% on a year earlier.
In the regulatory statement, HSBC chairman Douglas Flint said political sea changes that had rocked the world in 2016 contributed to “volatile financial market conditions”.
referring to The write-off accounted for part of the $6.8 billion pre-tax loss at its European business in 2016.Business at its Asian unit, meanwhile, remained fairly steady, with pretax profit dipping 12.5 percent to $13.8 billion pre-tax, mainly because of the effect of one-time items.
In the most recent quarter, HSBC’s net loss widened to $4.2 billion from $1.3 billion in the same period the previous year.
Europe’s biggest bank said net profit for 2016 tumbled 82 percent to USD2.5 billion from $13.5 billion a year ago as annual revenue fell 18.5 percent to $48 billion.
London-based bank HSBC reported yesterday that its annual profit slumped following a year it said would be remembered for “unexpected economic and political events” and warned of risks in 2017 to the global economy’s continuing recovery.
Flint said the bank has all the “licenses and infrastructure” it needs to continue working with customers once Britain does leave the EU.
HSBC registers €62.2 million pre-tax profit in 2016
referring to The advances-to-deposits ratio remained flat at 66%.Shareholders’ funds increased by 2.7% to €473.5 million reflecting the profit registered during the year.
Net loans and advances to customers rose by 1% to €3,320 million mainly reflecting continued growth in mortgages.
This translates into a net asset value per share of €1.314 (FY2015: €1.280).
Loan quality improved further in 2016 with non-performing exposures decreasing to 6.4% of gross loans and advances to customers compared to 7.0% in 2015.Similarly, total liabilities advanced by 0.8% to €6,832 million as customer deposits grew by a further 1% to €5,000 million.
Conversely, early prepayments in both retail and corporate loan books remained at a high level creating a pressure on the margin and offsetting the effect of the record gross new loans sanctioned.