HSBC reported a 62 per cent slump in annual pre-tax profit that fell way short of analysts’ estimates due to one-time charges related to some businesses, and announced a new $1 billion (£0.80 billion) share buy-back.
Europe’s biggest bank by assets said on Tuesday profit before tax for 2016 fell to $7.1 billion (£5.71 billion) from $18.87 billion (£15.18 billion) in the previous year. That compared with the average analyst estimate of $14.4 billion (£11.59 billion), according to Thomson Reuters data.
The 2016 profit reflected a $3.2 billion (£2.57 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.
The private banking impairment charges mainly relate to its acquisition of Safra Republic Holdings in 1999, it said, without giving details.
The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.