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HSBC Q3 profit dented by $800 mln hit for U.S. fine
November 5, 2012 / 8:30 AM / in 5 years

HSBC Q3 profit dented by $800 mln hit for U.S. fine

LONDON, Nov 5 (Reuters) - 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.

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