Legal expenses contributes to HSBC investment bank profit fall

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HSBC said first-half profit at its investment bank dropped 5.6% as legal expenses overshadowed an increase in revenue from foreign exchange and equities.

Bloomberg News reports that pretax profit in global banking and markets, the division that houses the firm’s trading units, fell to $4.75bn from $5.03bn in the year-earlier period, the bank said as it reported results Monday.

Revenue from its foreign exchange unit, the biggest driver of its markets business, climbed 24% to $1.67bn, while equities jumped 75% to $1.10bn.

The bulk of HSBC’s legal costs in the period were booked at the investment bank, which incurred $794m for settlements and provisions. The trading gains are a bright spot for Chief Executive Officer Stuart Gulliver, who is reducing the division’s assets to satisfy regulators as the company is battered by misconduct costs.

To access the complete Bloomberg News article hit the link below:

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