HSBC profits fall as bank adds $194m to PPI costs
HSBC has reported a fall in pre-tax profits of 12 per cent to $12.3bn for the first half of 2014, slightly below expectations and barely moving the bank's share price.
Revenue also took a hit, falling by four per cent to $31.4bn. Pre-tax profit in Asia was particularly hard hit, falling by close to 15 per cent.
Commenting on the results, HSBC group chief executive Stuart Gulliver said: "These results demonstrate the resilience of our business model.
"Whilst regulatory uncertainty, our balance sheet remains strong and our continuing ability to generate capital supports both growth and our continuing ability to generate capital supports both growth and our progressive dividend policy."
The banking giant, which has seen its share price fall over the past year, will also pay out a further $194m (£115m) for the mis-selling of payment protection insurance (PPI).
This figure is significantly higher than the £65m analysts at JPMorgan were predicting and brings the total set out by HSBC in PPI-related pay outs and previsions to around £2.3bn.
This figure doesn't match up to the sums forked out by other banks with Lloyds (£10.4bn), Barclays (£4.9bn) and RBS (£3.35bn) facing heftier payouts.
The bank has also voiced its displeasure with the regulators. The bank's chairman Douglas Flint, said: "When you look at the aggregate of everything that is in train at the moment it's a very full agenda and what we are saying is please take account of we already have on our plate and be aware of the glide path of many reformns already there."