HSBC (LON:HSBA) annual profits fell more than expected over the last year, causing shares to plunge in early Tuesday morning trading.
It reported a $7.1 billion (£5.7 billion) pre-tax revenue for the year, down from significantly higher $18.9 billion reported for 2015. This fell well below analysts forecasts around $14.4 billion.
The bank attributed the losses to continually low global interest rates and slowing economic growth in its major British and China Markets. In addition, one-off charges relating to its sale of its Brazilian arm, had also impacted profits to an unusual degree.
The bank has also been attempting to restructure its private Swiss bank assets, following a serious of failures. In 1999, HSBC created the bank from its $10 billion purchase of Republic National Bank of New York and Safra Republic Holdings in 1999.
HSBC CEO Stuart Gulliver remained confident however, that the troubles relating to the venture were in the past. In comments to Reuters, Mr Gulliver said:
“What this doesn’t mean is that we are selling the private bank… it means we have restructured the private bank and that’s now behind us.”
This follows announcements of 62 branch closures throughout the UK, in a bid to reduce costs and focus efforts upon the development of HSBC’s online banking divisions.
Regarding Brexit, Gulliver asserted that the June referendum decision had yet to feel its impact upon business, however it still remains committed to moving 1,000 of its 43,000 UK workforce to Paris once Brexit has been completed.
“There will be 1,000 jobs that will have to move, because it would be unlawful for that work to be carried out from the UK, but I don’t think this is a problem for the city of London,” Gulliver added.
As a result of the poor annual figures for the year, shares in HSBC are down 6.35 percent as of 10.07AM (GMT).