HSBC Holdings PLC on Monday reported a sharp fall in full-year net profit, as the bank continues to weather allegations that it helped clients dodge tax via its Swiss unit.
The U.K. based bank said that net profit for 2014 fell to $13.7 billion from $16.2 billion the year before, as the bank was hit with higher costs and a series of provisions for misconduct. Revenue for the year rose slightly to $62 billion from $61.9 billion in 2013. The bank set aside $1.19 billion in the year for settlements and provisions in a far-reaching investigation into its activities in foreign-exchange markets.
“Profits disappointed, although a tough fourth quarter masked some of the progress made over the preceding three quarters,” Chief Executive Stuart Gulliver said in a statement.
Under Mr. Gulliver HSBC has been trying to recast itself as a more tightly focused international organization. But the legacy of its sprawling past continues to haunt it.
Source: MarketWatch
