HSBC profits up as mis-selling scandal goes on

The bank is also still being investigated by 11 different US regulators over money laundering

Europe's biggest bank, HSBC, will tomorrow unveil the highest rise in profits of any of the banks that have reported in the past week. However, all eyes will be on what the chief executive, Stuart Gulliver, has to say about money laundering and increased provisions for mis-selling payment protection insurance (PPI).

Mr Gulliver said in July that a US Senate report that had described HSBC as "pervasively polluted for a long time" had been "shameful and embarrassing" for the bank.

At that time, HSBC set aside $700m (£437m) to cover any likely fine, while warning that any actual outcome could be "higher or significantly higher".

Its rival, Standard Chartered, has already paid $340m to the New York Department of Finance over accusations that it broke US sanctions over Iran. It has yet to settle with other regulators.

HSBC is being investigated by 11 different regulators in the US over money laundering. The lead investigation is by the Department of Justice, but the Federal Reserve, Office of Foreign Assets Control and the Office of the Comptroller of the Currency are also major players.

Mr Gulliver is not expected to announce whether the bank has settled with the regulators, but the mood music is likely to be that a deal is nearing conclusion.

When it comes to PPI mis-selling, HSBC has already set aside £1.1bn and is likely to increase this, following large rises in provisions from Lloyds, Barclays and RBS.

However, HSBC was one of the smaller players in the PPI market and it also stopped selling earlier than most of its rivals in 2007. So an increase of £200m to £300m would not come as great shock to the City.

Profits at HSBC are set to rocket in the third quarter by more than 80 per cent to $5.4bn, according to average analysts' forecasts. The main drivers will be continued growth in the Far East and a bounce-back in earnings from the investment bank against a very weak third quarter in 2011.

Mr Gulliver is also set to please analysts with a strong update on how rapidly the bank is disposing of small non-core businesses and cutting costs across the group.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Admin Assistant

£12000 - £15000 per annum: Recruitment Genius: An expanding Insurance Brokerag...

Ashdown Group: Editor-in-chief - Financial Services - City, London

£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...

Guru Careers: Pricing Analyst

£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...

Ashdown Group: Treasury Assistant - Accounts Assistant - London, Old Street

£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...

Day In a Page

Revealed: Why Mohammed Emwazi chose the 'safe option' of fighting for Isis, rather than following his friends to al-Shabaab in Somalia

Why Mohammed Emwazi chose Isis

His friends were betrayed and killed by al-Shabaab
'The solution can never be to impassively watch on while desperate people drown'
An open letter to David Cameron: Building fortress Europe has had deadly results

Open letter to David Cameron

Building the walls of fortress Europe has had deadly results
Tory candidates' tweets not as 'spontaneous' as they seem - you don't say!

You don't say!

Tory candidates' election tweets not as 'spontaneous' as they appear
Mubi: Netflix for people who want to stop just watching trash

So what is Mubi?

Netflix for people who want to stop just watching trash all the time
The impossible job: how to follow Kevin Spacey?

The hardest job in theatre?

How to follow Kevin Spacey
Armenian genocide: To continue to deny the truth of this mass human cruelty is close to a criminal lie

Armenian genocide and the 'good Turks'

To continue to deny the truth of this mass human cruelty is close to a criminal lie
Lou Reed: The truth about the singer's upbringing beyond the biographers' and memoirists' myths

'Lou needed care, but what he got was ECT'

The truth about the singer's upbringing beyond
Migrant boat disaster: This human tragedy has been brewing for four years and EU states can't say they were not warned

This human tragedy has been brewing for years

EU states can't say they were not warned
Women's sportswear: From tackling a marathon to a jog in the park, the right kit can help

Women's sportswear

From tackling a marathon to a jog in the park, the right kit can help
Hillary Clinton's outfits will be as important as her policies in her presidential bid

Clinton's clothes

Like it or not, her outfits will be as important as her policies
NHS struggling to monitor the safety and efficacy of its services outsourced to private providers

Who's monitoring the outsourced NHS services?

A report finds that private firms are not being properly assessed for their quality of care
Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

The Tory MP said he did not want to stand again unless his party's manifesto ruled out a third runway. But he's doing so. Watch this space
How do Greek voters feel about Syriza's backtracking on its anti-austerity pledge?

How do Greeks feel about Syriza?

Five voters from different backgrounds tell us what they expect from Syriza's charismatic leader Alexis Tsipras
From Iraq to Libya and Syria: The wars that come back to haunt us

The wars that come back to haunt us

David Cameron should not escape blame for his role in conflicts that are still raging, argues Patrick Cockburn
Sam Baker and Lauren Laverne: Too busy to surf? Head to The Pool

Too busy to surf? Head to The Pool

A new website is trying to declutter the internet to help busy women. Holly Williams meets the founders