HSBC’s underlying profit dipped 3 percent from a year ago to $10.6 billion as Europe’s biggest bank set aside $2 billion to cover US law enforcement and regulatory costs and to compensate UK customers for mis-selling.
A US Senate report this month slammed HSBC for letting clients shift funds from dangerous and secretive countries, and HSBC said on Monday it was setting aside $700 million to cover “certain law enforcement and regulatory matters”.
It set aside $1.3 billion to compensate UK customers for mis-selling.
HSBC on Monday reported a pretax profit of $12.7 billion for the six months to the end of June, up 11 percent on the year and above an average analyst forecast of $12.5 billion, according to a poll by the company. But underlying profit, stripping out gains from US assets sales and losses on the value of its own debt, was down 3 percent on the year to $10.6 billion.

Source: Reuters