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HSBC co-operating with FCA on forex probe as profit surges
by Dylan Lobo on Nov 04, 2013 at 09:36
HSBC has said it is assisting the Financial Conduct Authority (FCA) with its investigation into the possible manipulation of foreign exchange markets.
The news was accompanied by a strong third quarter trading update from the bank in which it revealed pre-tax profit shot up by 30% in the third quarter from $3.5 billion (£2.2 billion) in the corresponding period of 2012 to $4.5 billion.
In an accompanying statement, the bank said it is co-operating with regulators on the forex investigation, which saw Barclays suspend six traders at the end of last week.
'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,' the bank told the stockmarket.
HSBC attributed its performance in the third quarter to strength in its home markets of the UK and Hong Kong, which contributed to more than 50% of the group's profit.
The economic recovery has left chief executive Stuart Gulliver (pictured) optimistic on the bank's prospects.
'We see reasons for optimism with some evidence of a broadening recovery. Indications are that economic growth in mainland China is stabilising with positive implications for Hong Kong and the rest of Asia-Pacific,' he said.
'The US should continue to grow, albeit at a low rate by historical standards. The UK should see positive growth and outperform the eurozone. We expect GDP growth in Latin America to remain slow, although the Mexican economy should strengthen in 2014. Our forecasts for global growth remain constant at 2.0% in 2013 and 2.6% in 2014.'
At 9.15 am shares in the bank were up 2.5% at 704.3p.
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