The hangover from the murky past of HSBC’s private banking business is still lingering.
HSBC on Tuesday reported a net loss of $4.2 billion for the fourth quarter of 2016. The biggest single hit to its battered bottom line came from a $2.4 billion writedown of the value of its private banking business in Europe.
The global banking giant has spent years shrinking down and cleaning up its private banking operations, notably in Switzerland. The business came under scrutiny over reports it catered to weapons dealers, tax evaders and dictators.
HSBC’s fourth-quarter results also suffered from lower revenue and higher costs than the same period a year earlier, when it posted a net loss of $1.3 billion.
The bank’s shares were down around 4% in Hong Kong after it published the earnings report.