HSBC sees 82 per cent profits slump after ‘unexpected’ world events

File photo of a branch of HSBC in London, as the bank announced that profits have slumped by 82% after a year of "unexpected economic and political events". PRESS ASSOCIATION Photo. Issue date: Tuesday February 21, 2017. The London-based bank, which is Europe's largest, said on Tuesday that net profit for 2016 slipped to �2 billion from �10.8 billion the year before. Photo: Charlotte Ball/PA Wire
File photo of a branch of HSBC in London, as the bank announced that profits have slumped by 82% after a year of "unexpected economic and political events". PRESS ASSOCIATION Photo. Issue date: Tuesday February 21, 2017. The London-based bank, which is Europe's largest, said on Tuesday that net profit for 2016 slipped to �2 billion from �10.8 billion the year before. Photo: Charlotte Ball/PA Wire
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HSBC has announced that profits have slumped by 82 per cent after a year of “unexpected economic and political events”.

The London-based bank, which is Europe’s largest, said on Tuesday that net profit for 2016 slipped to £2 billion from £10.8 billion the year before.

Annual revenue fell 18.5 per cent to £38.6 billion and in the most recent quarter, its net loss grew to £3.5 billion from £1 billion the previous year.

Douglas Flint, the group’s chairman, said: “2016 will be long remembered for its significant and largely unexpected economic and political events.

“These foreshadowed changes to the established geopolitical and economic relationships that have defined interactions within developed economies and between them and the rest of the world.

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

“Against this background, HSBC’s performance in 2016 was broadly satisfactory.”

He said the company’s growth was threatened by Brexit negotiations as well as Donald Trump’s US presidency.

Mr Flint said: “We highlight the threat of populism impacting policy choices in upcoming European elections, possible protectionist measures from the new US administration impacting global trade, uncertainties facing the UK and the EU as they enter Brexit negotiations, and the impact of a stronger dollar on emerging economies with high debt levels.”

He also reiterated that 1,000 jobs may have to move from London to Paris over the next two years depending on the outcome of Brexit negotiations.

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