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Brexit warning as HSBC pre-tax profit for 2016 plunges by 62%

HSBC has warned of a tough year ahead after reporting a 62% profit fall during a year shaken by "largely unexpected economic and political events".

The banking giant said uncertainties over Brexit, together with Donald Trump's protectionist trade stance and European elections posed risks over coming months.

It confirmed that the decision to leave the meant it "may need to relocate some 1,000 roles from London to Paris progressively over the next two years, depending on how negotiations develop".

HSBC's Hong Kong-listed shares fell 4%.

Pre (Shanghai: 600048.SS - news) -tax profit of $7.1bn (£5.7bn) for the year compared with $18.9bn (£15.2bn) in 2015. In the final quarter of 2016, the bank swung to a $3.4bn (£2.8bn) pre-tax loss.

Chairman Douglas Flint said: "2016 will long be remembered for its significant and largely unexpected economic and political events.

"The uncertainties created by such changes temporarily influenced investment activity and contributed to volatile financial market conditions."

In 2015, HSBC announced a radical overhaul to cut annual costs by $5bn (£4bn) over two years by shedding 50,000 jobs worldwide, exiting unprofitable businesses and focusing more on Asia.