HSBC profits fall to £14 billion - Banking - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

HSBC profits fall to £14 billion

HSBC profits fall to £14 billion

Category: Banking

Updated: 04/03/2013
First Published: 04/03/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The run of banks announcing their yearly financial results continued today, with HSBC reporting a pre-tax profit of £17 billion for 2012, a 6% fall compared with the previous year's results.

Underlying pre-tax profits came out at £16.4 billion, however, reflecting an 18% increase from 2011.

The bank's fall in profits is believed to be a result of a number of fines incurred last year, including a £1.2 billion penalty imposed by US regulators in relation to money laundering offences.

A total provision of £1.3 billion, set aside by HSBC to deal with compensating customers who were mis-sold payment protection insurance (PPI), is also thought to have contributed towards the dip in profits.

Despite the lower than anticipated results, HSBC's chief executive, Stuart Gulliver, has reportedly received a £1.95 million bonus.

In a statement, Mr Gulliver said: "HSBC made significant progress in 2012.

"First and foremost we grew our business. We increased revenues, performed well in most faster-growing markets and enjoyed a record year in commercial banking," he added.

What next?

Find out how to choose the best bank account by reading our guides to help you open and manage your bank account.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Debit card spending still leads the way

Many of us turn to plastic at the tills these days, particularly as contactless technology makes it easier than ever before. It’s little wonder that card spending continues to ramp up – and it’s debit card spending that’s leading the way.

Current account switching to be made even easier

It was announced today that the Current Account Switch Service (CASS) will be undergoing improvements that are to be implemented in a year’s time. This should help give more customers and businesses the confidence to switch to a better bank account.

A quarter of all card payments now contactless

The rise of contactless payments shows no signs of stopping, with new milestones being hit on a seemingly monthly basis. Well, another one has arrived, with new data showing that a quarter of all card payments are now made via contactless means.