6 Nov 2012

Further provision made by bank for money-laundering fines

6:10 am on 6 November 2012

HSBC has put aside a further $US800 million to cover potential fines in the United States for money-laundering and has announced a fall in quarterly profits.

The bank had already put aside $US700 million after a US Senate report published in July said lax controls had left it vulnerable to money laundering.

Pre-tax profit for the three months to the end of September was $US3.5 billion, down $US3.7 billion from a year earlier.

However, the bank said underlying profits in the quarter had increased. They totalled $US5 billion, more than double the figure recorded for the same quarter a year ago.

The BBC reports the bank attributed the rise to growing revenues at its investment banking and commercial banking divisions, as well as fewer write-offs on bad loans.

The Senate report into HSBC said huge sums of Mexican drug money almost certainly passed through the bank.