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    Britain’s Top Five Banks Spend 61 Percent of Profits on Misbehavior

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    UK-based five biggest banks spent up to 61 percent of their profits on "remediation costs" for misbehavior over the past three years, according to the report published by the KPMG consulting company.

    MOSCOW (Sputnik) — Britain's five biggest banks have collectively spent up to 61 percent of their profits on "remediation costs" for misbehavior over the past three years, a report said on Tuesday.

    The latest study "A Paradox of Forces" by auditors of the KPMG consulting company covers financial results of UK-based five biggest banks: Royal Bank of Scotland (RBS), Lloyds, HSBC, Barclays and Standard Chartered.

    Referring to the issue as "the problem that won't go away," the study shows that more than 60% of the banks' total profits went to cover expenses between 2011 and 2014, with costs totaling up to $58 billion (£38.7 billion).

    "Customer remediation, conduct failings and fines continue to be a major issue, as costs have totaled £38.7bln – more than 60 per cent of their cumulative profits since 2011," the study reads.

    The banks' profitability results also represent a "mixed picture." The report reveals divergent performance across the top five UK-based banks as the profitability at the two state-backed banks, Lloyds and RBS, continued to rise, whereas it fell at the other three banks.

    The report comes amid a wave of financial scandals which hit the biggest UK-based banks over financial misconduct. This included rigging of Libor, the rate at which banks lend to each other and that underpins transactions worth trillions of dollars, forex market rigging, money laundering and profit from violating banks' international trade sanctions.

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    report, banking, Barclays Bank Plc, HSBC, KPMG, United Kingdom
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