HSBC’s pre-tax profits fall 17%

HSBC reported a 17% fall in annual pre-tax profit and cut its profitability target, saying that allegations its Swiss business had helped customers to dodge taxes had brought shame on the bank.

Results yesterday from Europe’s biggest bank reflected the cost of past misconduct and of protecting itself against the impact of further scandals.

HSBC said allegations about its Geneva-based arm, raided last week by Swiss officials and now the subject of a UK inquiry, had badly damaged its image.