HSBC turned its first profit in Switzerland in five years. The result comes against the backdrop of a surprise change atop the British-Asian lender.
The surprise exit of HSBC boss John Flint earlier on Monday after less than 18 months overshadowed quiet progress at its Swiss unit: HSBC in Switzerland swung to a pre-tax profit of $11 million in the first half, from a year-ago loss of $46 million, according to its interim report.
The result represents the first profit from HSBC in Switzerland in five years following a torrid period of crises. Last year, the bank brought in Alex Classen as the CEO of its Swiss unit. Previously, HSBC lumped its relatively autonomous Swiss bank together with five other private bank units in Europe.
Wider Wealth Changes
The Swiss profit was underpinned by a healthy corporate center and modest gains from its wealth management and commercial banking arms. By contrast, HSBC's investment bank in Switzerland posted a $1 million loss in the period.
Flint's exit comes shortly after HSBC appointed António Simões, a former Goldman Sachs banker and McKinsey consultant, as its overall head of private banking. The unit is in a hiring drive centered on Asia, but which is also expected to include Switzerland.
Torrid Scandals
HSBC's Swiss unit managed a French settlement – something which eludes rival UBS. The French tax probe was sparked by Hervé Falciani, an ex-technology staffer of the bank. Considered a hero-whistleblower by some, Falciani in 2006 and 2007 stole the data of some 15,000 customers of HSBC and offered it to foreign authorities, such as France, the U.K. and Germany.
This sparked a series of tax investigations against Swiss banks. Falciani is wanted by Swiss officials for stealing confidential data. In September, a court in Spain, where he now resides, rejected a Swiss request to hand over Falciani via extradition.
