LONDON Aug 4 HSBC said it was facing
unprecedented demands on its staff and operations from
regulatory reforms as it reported a 12 percent drop in profits
in the first half of the year.
Europe's biggest bank said on Monday pretax profits in the
six months to the end of June were $12.3 billion, down from
$14.1 billion a year earlier and just below an average forecast
of $12.5 billion from 15 analysts polled by the company.
The fall was mainly due to a weak first three months of the
year, when profits fell 20 percent from a year ago when the
bank's revenues were boosted by asset sales.
"The demands now being placed on the human capital of the
firm and on our operational and systems capabilities are
unprecedented. The cumulative workload arising from a regulatory
reform programme that is unfortunately increasingly fragmented,
often extra-territorial, still evolving and still adding
definition is hugely consumptive of resources that would
otherwise be customer facing," the bank said.
(Reporting by Steve Slater; Editing by Matt Scuffham)