HONG KONG -- London-based bank HSBC reported Tuesday that annual profit slumped by more than 80 per cent following a year of "unexpected economic and political events" that contributed to volatile markets and influenced investment activity.

Europe's biggest bank that net profit for 2016 tumbled 82 per cent to $2.5 billion from $13.5 billion a year ago.

Annual revenue fell 18.5 per cent to $48 billion.

In the most recent quarter, its net loss widened to $4.3 billion from $1.3 billion in the same period the previous year.

In a statement, Chairman Douglas Flint said the bank has recently raised its forecast for global economic growth. However, he warned that the risks remain high because of the threat of populism in upcoming European elections, the threat of global trade protection measures from President Donald Trump's administration and uncertainty over Britain's negotiations to leave the European Union.

HSBC is in the middle of carrying out a sweeping reorganization to focus on faster-growing Asia, where it earns the bulk of its profits.

Last year the bank's Asian business earned $13.8 billion, down 12.5 per cent from the year before, while its European unit posted a $6.8 billion loss.