HSBC profit boosted by lower redress costs

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HSBC has reported a pre-tax profit of $6.1bn (£3.9bn) for the third quarter of 2015, up by 32 per cent year-on-year.

The figure compares to a pre-tax profit of £3bn in Q3 2014, with the bank attributing the rise to lower regulatory costs.

HSBC says the increase reflects lower fines, settlements and UK customer redress.

Between July and September, the bank set aside £43m for UK customer redress. In the same period last year, it set aside £454m.

HSBC also set aside £88m for legal settlements and provisions in Q3.

In June the bank announced plans to cut 8,000 jobs in the UK as part of an overhaul that will see it rebrand its UK retail banking arm.

HSBC group chief executive Stuart Gulliver says: “Our third quarter performance was resilient against a tough market backdrop.

“Revenue was down compared to the third quarter of 2014. In particular, the stock market correction in Asia affected principal retail banking and wealth management, and revenue was also lower in global banking and markets.

“Our operating expenses were higher than the same period last year, as expected, although our cost programmes have started to gain traction.”