(MENAFN- The Peninsula) Scandal-hit global bank HSBC on Tuesday posted rising quarterly profits, but added regulators have requested more information about its controversial Swiss division.
Earnings after tax climbed to $5.26 billion (4.75 billion euros) in the three months to the end of March, compared with $5.21 billion a year earlier, the Asia-focused bank reported in a results statement.
Pretax profits advanced 4.4 percent to $7.1 billion in the same period. That sent HSBC's share price racing higher in morning trading because it easily beat market expectations of $5.8 billion.
"Our business recovered well in the first quarter following a difficult fourth quarter," said chief executive Stuart Gulliver in the statement.
"Global Banking & Markets had its usual strong start to the year, with a notable increase in year-on-year revenue in our markets businesses."
However, striking a negative tone, the bank also disclosed a new twist in the so-called SwissLeaks scandal.
"In the UK, the Financial Conduct Authority (FCA) issued a request for information to HSBC Bank plc and HSBC Holdings plc in relation to HSBC Swiss Private Bank," the bank announced in the earnings release.
The FCA had previously said in February that it was "working closely with the firm". A request for information by the watchdog however falls short of launching a formal investigation.
During the quarter, HSBC was forced to apologise for "unacceptable" failings at its Swiss division following allegations that the unit helped rich clients hide billions from the taxman.
HSBC has faced a storm over claims that it helped clients from around the world dodge taxes on accounts containing 180 billion euros ($204 billion) between November 2006 and March 2007, in cases that are being investigated in several countries.
The Asia-focussed lender had already revealed last month that it was facing a French criminal probe over the affair.
Separately, HSBC was fined late last year by US and British regulators for attempting to rig foreign exchange markets.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.