HSBC trading unit hit by $355m of XVA costs in H1
Adverse adjustments to the valuation of non-cleared derivatives (XVAs) at HSBC continued to sap earnings over the three months to end-June. Over the first six months of the year, credit valuation adjustments (CVA) and funding valuation adjustments (FVA) have lopped a combined $355 million off of income.
The hit was recorded at the UK firm’s global banking and markets (GB&M) division, and was equivalent in size to 4% of first-half revenues. Over the half-year to June 2019, CVA and FVA
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