HSBC Holdings PLC also known as (Hongkong and Shanghai Banking Corporation) announced to investors this week, that first quarter profits for 2017, dropped 19% from the previous quarter to £3.8 billion as the bank battled to deal with a myriad of issues.
HSBC, which was one of the banks responsible for the mis-selling of payment protection insurance to millions of it’s customers in the UK, said that it had been forced to recruit dozens of more staff in order to deal with financial crime. HSBC in recent years has been plagued by several high-profile financial scandals and fraud.
The bank which has paid out over £4 billion in ppi claims to people affected by mis-sold ppi also that that:
A deferred prosecution agreement – put in place alongside a £1.2bn fine imposed in 2012 by US authorities for poor controls that allowed Mexican drug traffickers to make deposits – has put a focus on HSBC’s attempts to improve its resilience to financial crime.
Under this DPA, the US lawyer Michael Cherkasky, appointed as a monitor, has raised questions about the speed of change at HSBC. Iain Mackay, the HSBC finance director, said there was a “very sharp focus” on meeting the requirements of the DPA, which runs until the end of this year.
In a reminder of one issue facing the bank, the Spanish high court announced after the company had published its results on Thursday that it would question seven former HSBC executives as part of an investigation into revelations of tax avoidance schemes run in its Swiss arm from leaks by Hervé Falciani.