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25/03/2013
Bank Profits 'Wiped Out'
Major UK banks have had their 45% profit rise of 2012 all but ‘wiped out’ by a mix of regulation and their own mistakes, a KPMG report says.
Looking at Barclays, HSBC, Lloyds Banking Group, RBS and Standard Chartered, the performance report shows the banks' combined core profits last year were £31.5bn.
But this was eliminated by the "cost of past mistakes and increased creditworthiness of their own debt", the audit firm's report says.
Because of this the banks actually saw their statutory profits slump 40% on the previous year, at £11.7bn, KPMG added.
The banks, it says, were hit by PPI costs of £7.4bn - up from £5.7bn in 2011,
In addition, there were other fines and penalties from regulators and "redress provisions" of £4.7bn, and a £12.8bn accounting hit for losses caused by the revaluation of "own debt'", "reflecting the credit markets' more positive view on bank issuers and interest rate movements".
(H)
Looking at Barclays, HSBC, Lloyds Banking Group, RBS and Standard Chartered, the performance report shows the banks' combined core profits last year were £31.5bn.
But this was eliminated by the "cost of past mistakes and increased creditworthiness of their own debt", the audit firm's report says.
Because of this the banks actually saw their statutory profits slump 40% on the previous year, at £11.7bn, KPMG added.
The banks, it says, were hit by PPI costs of £7.4bn - up from £5.7bn in 2011,
In addition, there were other fines and penalties from regulators and "redress provisions" of £4.7bn, and a £12.8bn accounting hit for losses caused by the revaluation of "own debt'", "reflecting the credit markets' more positive view on bank issuers and interest rate movements".
(H)
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