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


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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.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

More people are switching current accounts

Competition in the current account market remains intense, which means if you’re not happy with your account for any reason, now’s a great time to switch! Happily, more and more people seem to be getting in on the switching action...

Financial services complaints continue to fall

Many people feel dissatisfied with their financial providers at times, but happily, it looks as though the most serious complaints are becoming less and less common.

Contactless spending hits yet another record

Contactless spending is going from strength to strength, hitting new records on a seemingly monthly basis - and it’s just broken yet another one, with monthly contactless spending having passed the £2bn mark for the first time.