Tuesday 12 December 2017

HSBC profits up 10pc as trade probe looms

Steve Slater

HSBC reported a 10pc rise in third-quarter profits yesterday and confirmed it was being investigated in a currency market trading manipulation probe.

Europe's largest bank said underlying pre-tax profit was $5.1bn (€3.8bn) for the three months to September 30 – up 30pc on a statutory basis – with strong Hong Kong and British markets together accounting for more than half of earnings and offsetting a fall in Latin American profits.

Chief executive Stuart Gulliver said he saw evidence of a broadening recovery in which the US should continue to grow, albeit slowly, and the UK would outperform the eurozone.

"We've always been confident China would have a soft landing. . . which is supportive for the rest of Asia-Pacific," he told a conference call with reporters.

HSBC said it was cooperating with Britain's Financial Conduct Authority, which is leading an investigation into the $5.3-trillion-a-day foreign exchange market that has spread to include regulators in the United States, Asia and Switzerland.

HSBC has set aside more money for potential settlements or compensation.

It made an extra provision in its private bank to cover a US investigation into US citizens with Swiss bank accounts.

HSBC declined to specify how much it had set aside. (Reuters)

Irish Independent

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