At the 8 February 2017 meeting, HSBC France’s Board of Directors approved the bank’s consolidated financial statements for year 2016.

Net profit attributable to shareholders of the parent company was €310m in 2016 versus €445m in 2015 and €198m in 2014.

The bank’s reported profit before tax was €432m compared with €618m in 2015 and €232m in 2014. On an adjusted basis1, profit before tax was €663m versus €548m in the previous year.

Underlying results in 2016 show increased operational performance in Global Banking and Markets, a significant decrease in loan impairment charges notably in Commercial Banking due to improvements in the economic environment and a fall in revenue in Retail Banking and Wealth Management as a result of low interest rates.

HSBC France’s results have been achieved against a background of low interest rates which impacted the net interest margin and has driven significant mortgage renegotiations in 2015 and 2016.

Reported net operating income stands €2,317m from €2,371m in 2015. Adjusted revenue was €2,250m in 2016 compared to €2,283m in the previous year.

Loan impairment charges were €73m, a significant decrease compared to €121 in 2015. The normative2 cost of risk represented 0.21% of outstanding client loans, compared with 0.32% in 2015.

Reported operating expenses were €1,812m compared to €1,632m in 2015. 2016 recorded exceptional elements, notably goodwill impairment totalling €127m in both Retail Banking and Wealth Management and Private Banking as well as costs to achieve including the voluntary redundancy plan announced in September 2016. Adjusted operating expenses were €1,514m including a €19m increase in the contribution to the European Single Resolution Fund.

HSBC France’s consolidated balance sheet had total assets of €169bn at 31 December 2016, stable compared with 31 December 2015. The client loan book rose 7% to €41bn, growing in all business lines. Customer deposits increased 4%to €34bn with steady collection across all businesses.

At 31 December 2016, HSBC France had a liquidity coverage ratio (‘LCR’) of 122% and a fully loaded common equity tier 1 (‘CET1’) ratio of 13.1%.