HSBC (HSBA.L) has become the latest major bank to confirm it is helping with a probe into possible manipulation of global currency markets, after reporting a 10 percent rise in quarter profits on Monday, aided by lower costs.
HSBC said it was cooperating with early-stage investigations by Britain’s Financial Conduct Authority and agencies in several countries into a number of firms, including HSBC, relating to trading on the foreign exchange market.
Rivals including Barclays (BARC.L), Deutsche Bank (DBKGn.DE) and JPMorgan (JPM.N) said last week they were co-operating with regulators examining possible collusion in the $5.3 trillion a day currency market, the latest in a string of conduct issues to hit the industry.
HSBC Chief Executive Stuart Gulliver has pledged to instill a more responsible culture and reduce risk across his bank after it was fined a record $1.9 billion last year for lax anti-money laundering compliance in Mexico and elsewhere.
HSBC reported an underlying pretax profit of $5.1 billion for the three months to September 30, up 10 percent from a restated $4.6 billion last year, after excluding the impact of changes in the value of its own debt.
On a statutory basis, profits rose 30 percent from a year ago.
The rise, in line with analysts’ forecasts, was underpinned by a $700 million drop in operating expenses to $9.6 billion, but the bank said that was mainly due to the absence of one-off items last year. Underlying costs were up on the year due to investments, wage inflation and regulatory costs.
By 0850 GMT (3:50 EDT) HSBC shares were up 2 percent at 701 pence, outperforming a flat European bank index .SX7P.
REUTERS
