HSBC profit plummeted because of penalties, compensation

Income  of CEO of HSBC – Stuart Gulliver also reduced from £ 8.03 to £ 7.6 million last year, due to his bonus shrink. As Chairman of HSBC Income – Douglas Flint increased from 2.4 to 2.5 million pounds, but do not receive bonuses.

This information was announced amid HSBC accused of helping clients money laundering and tax evasion, through a subsidiary in Switzerland. HSBC shares fell more than 5%, the lowest of 2.5 years after profit report on. Results were in decline is explained by the fines and compensation to customers up $ 2.4 billion, mainly due to alleged manipulation of the exchange rate and credit insurance sales for the wrong audience.

HSBC profit plummeted because of penalties, compensation

HSBC is sticking scandal helping customers money laundering and tax evasion. Photo: Telegraph
Recently, HSBC has narrowed the scope to increase profits. Gulliver said was closed and sold 77 businesses, cut 50,000 jobs since he took office in 2011.

“When the media is still humming the current scandal of HSBC, I think the business situation is what investors should be most worried about,” Ian Gordon – Analysts at Investec said on the BBC.

Yesterday, HSBC continued to apologize for the scandal at the Swiss branch and that it “not acceptable”. The bank said restoring confidence in the banking sector “will be a big challenge, as many negative employment uncovered. But it will be a challenge we need to overcome.”

Last week, Gulliver was dragged into the case after the Guardian said he had £ 5 million in accounts in Switzerland. HSBC then confirmed the CEO have a bank account in Switzerland to keep the bonus.

HSBC said he had opened the account in 1998 while living and working in Hong Kong (China). Taxes are paid in full in Hong Kong on all bonuses he received. Yesterday, Gulliver said he never paid the tax under the highest tariffs in the UK, since taking over as CEO.

He explained that the computer system of HSBC 90s allows all employees in accessing bank accounts of other banks. So, he had to open another account in Switzerland to hide colleagues or scrutiny of their income. He also used the name of the company to ensure employees Panama HSBC in Switzerland can not access his account. “Really, this just so I have a little privacy, and none of the tax benefit at all,” he said.

HSBC profit plummeted because of penalties, compensation
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