For HSBC, the past 12 months have brought an unusual run of firsts.

Europe’s biggest bank was the first to signal an end to free banking by introducing current account charges for some First Direct customers; in February, its board issued the first profit warning in its 142-year history, and today it has become the first British high street lender to detail exactly how much it has paid to reimburse customers’ unauthorised overdraft charges. If the scale of the bill is anything to go by – HSBC has shelled out $236 million (£116 million) – its sector peers are in line to admit to some hefty refunds.

That is, of course, if the legal question of whether the charges are lawful or not is ever resolved. Still, despite those charges causing HSBC’s UK retail profits to plummet by 37 per cent, the bank’s shares ticked higher today, helped by expectation-beating pre-tax profits and its buoyant outlook on developing markets, which serve to offset the bank’s exposure to the US housing market. HSBC is working hard to reduce its dealings with below-par borrowers but it has $41.4 billion worth of sub-prime loans on its books – still a significant risk.

However, until HSBC can get investors to focus on its strengths in Asia Pacific – from where it grew – rather than on weakness in the US or UK, the rerating it seeks is likely to prove elusive.

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