HSBC helping with forex probe as profits rise 10%

Banking giant HSBC today confirmed it was co-operating with regulators over a probe into foreign exchange trading as it reported a 10 per cent rise in quarterly profits.

Europe’s largest bank also said charges for compensating customers who were mis-sold payment protection insurance totalled $514 million (£322m) in the first nine months of the year, with a further $132m to cover the cost of interest rate hedging products.

Rivals including Barclays, Deutsche Bank and JP Morgan said last week they were working 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, headed by chief executive Stuart Gulliver, said today: “The Financial Conduct Authority is conducting investigations alongside several other agencies in various countries into a number of firms, including HSBC, relating to trading on the foreign exchange market.

“We are co-operating with the investigations which are at an early stage.”

Underlying pre-tax profits for the three months to the end of September rose to $5bn, up from $4.6bn a year earlier and in line with analysts’ expectations.