The bank has set aside £454m for missold payment protection insurance and £156.8m for missold interest rate swaps, having already made a provision of £1.4bn for UK customer redress in 2012.
Its UK mortgage lending fell 12% from £16.4bn to £14.4bn last year, with first time buyer lending falling 24% from £5bn to £3.8bn.
Overall, the bank reported a pre-tax profit of £13.56bn for 2013, a 9% increase on 2012’s £12.41bn. Total group revenue totalled £38.84bn in 2013, down from £41.05bn in 2012.
HSBC Group chief executive Stuart Gulliver says:
"Our performance in 2013 was influenced by the strategic measures that we have taken since the start of 2011.
"Although much progress has been made since 2011, we did not meet all of our targets by the end
of 2013. Our reported cost efficiency ratio of 59.6% and return on equity of 9.2 % in 2013 were both outside our target ranges, in part affected by continuing UK customer redress. In addition, there is further work required to grow our incremental wealth revenues to achieve our target of £1.8bn in the medium term."
