Nov 03 Bulgaria 1 Report from London Nejra Cehic

HSBC faced lower-than-expected profits in the third quarter due to setting aside over a billion dollars for currency rigging settlements and customer compensation in the UK. Despite these challenges, HSBC's capital and leverage ratios improved, meeting regulatory requirements. The bank, along with others, allocated $2.4 billion to address foreign exchange market rigging allegations, a market with a daily trading volume exceeding $5 trillion. HSBC also dealt with issues related to mis-selling payment protection insurance and mortgage securities misconduct.

What was one of the reasons for HSBC's lower-than-expected profits in the third quarter?

• Higher employee bonuses

• Expansion into new markets

• Currency rigging settlements

• Increased interest rates

How much did HSBC and other banks set aside to settle allegations of foreign exchange market manipulation?

• $1 billion

• $2.4 billion

• $701 million

• $5 trillion

What is the daily trading volume of the foreign exchange market mentioned in the transcript?

• $10 trillion

• $2 trillion

• $1 trillion

• $5 trillion

What was HSBC's capital ratio in the first half?

• 12.5%

• 11.4%

• 13.6%

• 10.2%

Which regulatory bodies were involved in measuring HSBC's capital ratio?

• Federal Reserve and Bank of Japan

• ECB and European Banking Authority

• IMF and World Bank

• Bank of Canada and Reserve Bank of Australia