HSBC Sets Aside a Further £1.5bn for PPI

HSBC has reported a £13.7bn pre-tax profit for 2012 as the bank was hit by further misselling provisions of £1.5bn and its £1.2bn fine from US regulators last year.

The bank saw profits fall 5.5 per cent last year, down from £14.4bn in 2011.

The bank has set aside an extra £1.5bn in 2012 to cover compensation payments for the misselling of financial products, including £1.1bn to cover costs related to the misselling of payment protection insurance and £397m to cover costs relating to the misselling of interest-rate swaps. In total, HSBC has set aside £1.6bn to settle PPI-related claims.


HSBC also had to pay a £1.2bn fine from US regulators last year to settle a money-laundering inquiry.

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