HSBC Private Bank Switzerland widened its first-half loss as it attempts to put the Falciani case behind it.
HSBC Private Bank Switzerland had a first-half loss of $46 million, $6 million more than in the same period of 2017, the Swiss unit of the U.K.-based bank said in a statement.
One of the reasons for this performance were ongoing legal proceedings in connection with the theft of data by its former employee Hervé Falciani in 2007. Last year, HSBC had to pay 300 million euros ($347 million) to settle a tax dispute in France.
Awaiting U.S. Settlement
The pretax loss at the Global Private Banking division widened to $65 million from $40 million. HSBC once was the biggest foreign bank in Switzerland, but since has shrunk its business in the country.
The strategy change launched in 2010 included the focusing on 20 offshore markets from a previous 150. The change in focus meant that clients left, weighing on earnings.
HSBC Private Bank Switzerland is still awaiting a settlement of the tax dispute with U.S. authorities. Investigations into alleged tax misdemeanors and money-laundering are ongoing in countries such as Belgium, Argentina, India and Spain.
