HSBC ‘deeply regrets’ Swiss scandal; reports 17 per cent fall in profits
Europe’s biggest bank said recent disclosures about past practices and behaviour at its Swiss private bank - where it has been accused of helping clients dodge taxes - reminded it of “how much there still is to do” at the bank.
HSBC said it was cutting its target for return on equity to “more than 10 per cent”.
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Hide AdIt reported a pre-tax profit of $18.7bn for 2014, down from $22.6bn the year before and below the average analyst forecast of $21bn.
In relation to the Swiss tax scandal, HSBC chairman Douglas Flint said the bank needed to reinforce controls and demonstrate their effectiveness.
He added: “We deeply regret and apologise for the conduct and compliance failures highlighted, which were in contravention of our own policies as well as expectations of us.”
The bank was also the subject of a £216 million fine from the Financial Conduct Authority relating to HSBC’s failure to prevent the rigging of foreign exchange operations.
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Hide AdChief executive Stuart Gulliver admitted that 2014 had been a challenging year, with profits down due to a number of one-off factors including the settlement of regulatory fines.
He added: “Profits disappointed, although a tough fourth quarter masked some of the progress made over the preceding three quarters.
“Many of the challenging aspects of the fourth-quarter results were common to the industry as a whole.”
HSBC owns Leeds-based First Direct.