Bank shares fall as PPI bills weigh on profits

clock • 1 min read

HSBC and Barclays saw their share prices dive today as profits were hit by the banks' provision for PPI claims.

HSBC's shares have fallen more than 1.5% after the bank revealed profits fell by $806m, driven down by a $440m (£268m) PPI provision. The bank made $4.9bn in profit before tax, down from $5.7bn in Q1 2010. In reaction, the group's shares slipped 1.64% to 641p. Stuart Gulliver, the group chief executive, said profits fell in retail banking and wealth management, principally due to the provision of $440m taken in relation to PPI sales. Excluding the PPI provision, total expenses in Europe were in line with Q1 2010 and 3% lower than in Q4 2010, reflecting tight cost controls, he sa...

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