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| HSBC bank's half-year profits fall by 12% | HSBC bank's half-year profits fall by 12% |
| (35 minutes later) | |
| HSBC's pre-tax profits fell by 12% in the first half of 2014 compared with the same period a year before. | HSBC's pre-tax profits fell by 12% in the first half of 2014 compared with the same period a year before. |
| Profits were $12.34bn (£7.33bn), from $14.071bn twelve months earlier. | Profits were $12.34bn (£7.33bn), from $14.071bn twelve months earlier. |
| During the half-year the bank also put aside some $234m for its "customer redress programmes", to cover the cost of things such as mis-selling Payment Protection Insurance (PPI). | During the half-year the bank also put aside some $234m for its "customer redress programmes", to cover the cost of things such as mis-selling Payment Protection Insurance (PPI). |
| The bank said that it hoped to reduce the "severity of future customer redress" costs. | The bank said that it hoped to reduce the "severity of future customer redress" costs. |
| As well as covering mis-sold PPI, HSBC customer redress costs include such things as disputes over advice given by its wealth management arm, and for mis-sold interest rate swaps. | |
| The redress figure for the first half of this year is down from the $412m set aside in the first half of 2013. | |
| 'Unprecedented' demands | |
| Stuart Gulliver, HSBC group chief executive, said: "These results demonstrate the resilience of our business model. Whilst regulatory uncertainty persists, our balance sheet remains strong and our continuing ability to generate capital supports both growth and our progressive dividend policy." | Stuart Gulliver, HSBC group chief executive, said: "These results demonstrate the resilience of our business model. Whilst regulatory uncertainty persists, our balance sheet remains strong and our continuing ability to generate capital supports both growth and our progressive dividend policy." |
| But the bank did say it was facing challenges from regulatory reforms around the world. | |
| "The demands now being placed on the human capital of the firm and on our operational and systems capabilities are unprecedented," it said. | |
| "The cumulative workload arising from a regulatory reform programme that is unfortunately increasingly fragmented, often extra-territorial, [is] still evolving and still adding definition is hugely consumptive of resources that would otherwise be customer facing." |