HSBC bank logs higher profits amid probes

Posted by BankInfo on Thu, May 07 2015 10:42 am

Scandal-hit global bank HSBC on Tuesday posted rising quarterly profits, but added regulators have requested more information about its controversial Swiss division.

Earnings after tax climbed to $5.26 billion (4.75 billion euros) in the three months to the end of March, compared with $5.21 billion a year earlier, the Asia-focused bank reported in a results statement.

Pretax profits advanced 4.4 percent to $7.1 billion in the same period. That sent HSBC's share price racing higher in morning trading because it easily beat market expectations of $5.8 billion.

"Our business recovered well in the first quarter following a difficult fourth quarter," said chief executive Stuart Gulliver in the statement.

"Global Banking & Markets had its usual strong start to the year, with a notable increase in year-on-year revenue in our markets businesses."

However, striking a negative tone, the bank also disclosed a new twist in the so-called SwissLeaks scandal.

"In the UK, the Financial Conduct Authority (FCA) issued a request for information to HSBC Bank plc and HSBC Holdings plc in relation to HSBC Swiss Private Bank," the bank announced in earnings release.

 

The FCA had previously said in February that it was "working closely with the firm". A request for information by the watchdog however falls short of launching a formal investigation.

During the quarter, HSBC was forced to apologise for "unacceptable" failings at its Swiss division.

News:The Daily Star/7-May-2015

 

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