HSBC profits miss expectations

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HSBC shares fell this morning dragging down FTSE bank stocks, as the UK institution announced that results for 3Q14 failed to meet expectations due to legal expenses.

HSBC’s pre tax profit rose by 2% to $4.6bn (€3.6bn), as opposed to the $5.4bn (€4.3bn) anticipated by analysts.

Profits have been hit by a 15% rise in operating costs including compliance and legal costs, as HSBC set aside almost $400m (€319m), in order to cover the cost of an FCA investigation into its alleged rigging of exchange rates.

Group CEO Stuart Gilliver commented on the results: ““Despite the rising regulatory expectations, I am confident that our business model remains sustainable and that we can deliver further value for our shareholders while meeting our obligations and protecting the future of HSBC.”

Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

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