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HSBC Q3 profit dented by $800mn hit for US fine

hsbc LONDON: HSBC Holdings took another $1.15 billion hit to cover a potential US fine for lax anti-money laundering controls and UK mis-selling on Monday, eating into quarterly profits at Europe's biggest bank.

 

HSBC's earnings were aided by a sharp drop in bad debts, but it set aside another $800 million to cover a potential fine from US regulators for breaches in its anti-money laundering controls in Mexico, adding to $700 million set aside in July.

 

It also took another $353 million charge for UK mis-selling, mainly for payment protection insurance.

The bank reported an underlying profit - after stripping out the impact of disposals and changes in the value of its own debt - in the July-September quarter of $5 billion, up from a revised $2.2 billion a year earlier.

 

Copyright Reuters, 2012