A $1.92bn fine slapped on HSBC by US regulators for failures in anti-money laundering looks painful. And, while the bank, with a comfortable 11.7 per cent core tier one capital ratio, should easily absorb that, it's another issue to add to HSBC's list of challenges.
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For the nine months to end-September, for example, HSBC's pre-tax profits fell 13 per cent to $16.2bn year on year. While HSBC is seeing solid growth in its emerging markets, it's a different story in Europe and North America. Indeed, the bank continues to grapple with a hefty credit quality problem in the US, leaving the North American bad debt charge comprising 44 per cent of the group's end-September total charge.
