HSBC Half Year Profits Drop

HSBC Half Year Profits Drop.

HSBC has posted its half-year profits which showed a 12% decline in the first half of this year compared with the same point last year.

Just like we reported on Lloyds Banking Group, HSBC has set aside money for its “customer redress programmes” which covers such things as PPI. HSBC is Europe’s biggest bank and has stated that it hoped to reduce the cost of future customer redress schemes.

The bank has put aside $234m for these costs, this was down from last year’s redress costs which amounted to $412m in the first half of 2013.

The bank also said that they were facing many challenges from different regulatory reforms around the world. HSBC is currently going through its own changes to make the bank more efficient and less complex, they have reduced 40,000 jobs so far and closed 60 businesses which has resulted in a saving on $5bn.