FX.co ★ HSBC’s earnings plummet by 62% in 2016

HSBC Holdings, Europe's largest bank by assets, reported a plunge in its pre-tax profits by 62% to $7.1 billion in 2016 compared to $18.87 billion in 2015. Analysts had expected profits of $14.4 billion.

HSBC made profit before tax of $7.1 billion in 2016 compared to $18.87 billion for the previous year, well below an average analyst estimate of $14.4 billion.

HSBC's net revenue came in at $3.45 billion from $15.1 billion in 2015. The bank’s operating profits fell to $3.45 billion and operating profits declined to $3.45 billion. HSBC had $3.2 billion impairment in its private banking business in 2016.

Commenting on the report, the bank said that the losses were associated with political upheavals in Europe, the Brexit and global political uncertainties.

This year, the risks include political tensions in the EU, migration, terrorism, intensification of tensions in relations with Russia, as well as uncertainty regarding the future relationship between Britain and the European Union.

Additional pressure could come from elections in France, Germany, the Netherlands and Italy, which will take place in 2017.