Bank shares fall as PPI bills weigh on profits

HSBC and Barclays saw their share prices dive today as profits were hit by the banks' provision for PPI claims.

HSBC's shares have fallen more than 1.5% after the bank revealed profits fell by $806m, driven down by a $440m (£268m) PPI provision. The bank made $4.9bn in profit before tax, down from $5.7bn in Q1 2010. In reaction, the group's shares slipped 1.64% to 641p. Stuart Gulliver, the group chief executive, said profits fell in retail banking and wealth management, principally due to the provision of $440m taken in relation to PPI sales. Excluding the PPI provision, total expenses in Europe were in line with Q1 2010 and 3% lower than in Q4 2010, reflecting tight cost controls, he sa...