HSBC expected to set aside extra £75m for PPI
HSBC is readying itself for a second wave of charges as the industry's bill for the mis-selling of payment protection insurance (PPI) swept past £23bn.
The bank is expected set aside an extra £75m, with the exact amount given in its half-yearly results, released at 9:15 this morning. The extra funds put the total payments for the bank at around £2.2bn.
Last week Barclays, Lloyds and RBS all set aside extra funds to pay the costs of the scandal, which is now the sector's biggest.
Estimates are that the bank will see a fall in first-half profits to £7.4bn, a drop of 11.5 per cent. The fall in the first quarter was much more severe, coming in at 20 per cent.
The bank has not had to make the biggest payouts, with other banks such as Lloyds (£10.4bn) and Barclays (£4.9bn) facing heftier payouts.
HSBC has seen its share price fall over the last year, but it is hoping to see an uptick following the ending of its asset sales and better returns from operations in Hong Kong and China.
All eyes will be on the second quarter results as investors look for progress.