LONDON Nov 5 HSBC Holdings took
another $1.15 billion hit to cover a potential U.S. 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
U.S. 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.