HSBC shares fall as £268m PPI bill weighs on profits

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HSBC's shares have fallen more than 1.5% this morning after the bank revealed profits fell by $806m in Q1, driven down by $440m (£268m) PPI provision.

The bank made $4.9bn in profit before tax over the period, down from $5.7bn in Q1 2010. In response, the group's shares fell 1.64% to 641p. Stuart Gulliver, HSBC group chief executive, said profits fell in retail banking and wealth management, principally due to the provision of $440m to compensate investors for 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 said. He added: "Revenues were 5% lower than in Q1 2010, principally as a result of headwinds highlighted in respect o...

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