HSBC tackles costs as profits fall

HSBC’s new boss set the scene for an assault on the group’s costs today after the banking giant unveiled a 14% drop in first quarter profits.

A bill of $440m to cover payment protection insurance compensation, as well as weaker trading in Europe and the United States, sent pre-tax profits down to $4.91bn in the quarter to end March, from $5.71bn this time last year.