HSBC Key Target Prone to Manipulation by Managers, Auditors Said
- PwC said in annual report figures were open to being misstated
- CEO had rebuked top managers in March for missing cost targets
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HSBC Holdings Plc’s auditors cautioned top executives that pressure to meet earnings targets gave managers an incentive to massage their numbers.
The warning contained in the bank’s 2018 annual report from Pricewaterhouse Coopers LLP focused on Chief Executive Officer John Flint’s aim of driving revenue at a faster pace than costs. It has been at the heart of his strategy to improve returns at the lender, whose global network stretches from New York to London to Shenzhen. HSBC’s latest annual report was published in February this year.