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HSBC sets aside over £1.2bn to cover fines and redress

HSBC Interior Alternate 450

HSBC has set aside £787m to cover the costs of misselling claims in the UK and around £445m to cover the costs of failings in relation to money laundering in its US business.

The bank’s interim results, published yesterday, show it has set aside an additional £637m to cover the costs of claims relating to the misselling of payment protection insurance and around £150m for claims relating to the misselling of interest rate swaps to small businesses.

HSBC has already set aside £750m to pay compensation claims relating to PPI.

For the first half of the year to June 30, HSBC reported a pre-tax profit of £8bn compared to £7.3bn over the same period last year.

The bank now has an 11 per cent market share of the UK mortgage market, according to the results, and it says it has lent £10bn of the £17bn it had earmarked for lending in 2012 by the end of June.

Group chairman Douglas Flint says: “HSBC has made mistakes in the past, and for them I am very sorry. Candidly, in particular areas we fell short of the standards that I, my colleagues, our regulators, customers, and investors expect.

“We cannot undo the mistakes but I can assure you that [group chief executive] Stuart Gulliver and I are determined, and have made it our most important priority, to strengthen HSBC and reinforce our values. Our business practices and actions must stand up to scrutiny wherever we operate.”

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  1. And these are the people the cretins of Canary Wharf wish to replace IFAs with!

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