HSBC legal costs rise by $1.1 billion

A man talking on a mobile walks past a HSBC branch in Mexico City. REUTERS photo

HSBC, Europe’s biggest bank, has set aside an additional $1.15 billion to cover potential U.S. fines for money laundering by its Mexican unit and penalties for mis-selling payment protection insurance. The provisions were announced Monday alongside a 52 percent fall in third-quarter profit to $2.5 billion.
The bank has raised its total provision for money laundering by $800 million to $1.5 billion, though it warned that the cost could go even higher. It also set aside an extra $353 million to compensate U.K. customers, raising the total estimated cost to $1.8 billion. HSBC says it is also likely to face criminal charges in the money laundering case.money laundering by its Mexican unit and penalties for mis-selling payment protection insurance. The provisions were announced Monday alongside a 52 percent fall in third-quarter profit to $2.5 billion.

The bank has raised its total provision for money laundering by $800 million to $1.5 billion, though it warned that the cost could go even higher. It also set aside an extra $353 million to compensate U.K. customers, raising the total estimated cost to $1.8 billion. HSBC says it is also likely to face criminal charges in the money laundering case.