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HSBC profits fall to £14 billion

HSBC profits fall to £14 billion

Category: Banking

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

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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.

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