BRUSSELS: HSBC has said that 2014 was a “challenging year” after reporting a 17% drop in profit to $18.7bn (£12.2bn).
The bank blamed the negative effect of fines and settlements and UK customer redress for the sharp drop.The results follow allegations, which emerged earlier this month, that HSBC had helped people evade UK tax using hidden HSBC accounts in Geneva.
The lower total reflects a smaller bonus of £3.4m for the year, compared to £5.5m in 2013. Mr Gulliver said the lower bonus reflected “failures” linked to foreign exchange manipulation.Chairman Douglas Flint’s total pay increased to £2.5m from £2.4m for the year, but he did not receive a bonus.
On Monday, HSBC reiterated its recent apology for the conduct of its Swiss private bank, saying the historical practices and behaviour were “unacceptable”.
We deeply regret and apologise for the conduct and compliance failures highlighted, which were in contravention of our own policies, as well as expectations of us,” it said.
The bank said restoration of trust in the industry “remains a significant challenge as further misdeeds are uncovered but it is a challenge we must meet successfully”.
When commentators extrapolate instances of control failure or individual misconduct to question the culture of the firm, it strikes painfully at the heart of our identity,” it added.
