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HSBC earmarks $800 mn more for possible penal actions in US

Press Trust of India  |  London 

In July, the bank had earmarked USD 700 million for possible regulatory fines in the US.

This was announced as the banking entity posted a sharp plunge in net profit to USD 2.5 billion in the three months ended September 30, 2012 compared to USD 5.22 billion in the year-ago period.

The funds has been earmarked to cover potential penalties following a report by the US Senate alleging that HSBC of exposing the American financial system to various terror financing, money laundering and drug trafficking activities with transactions worth billions of dollars, due to poor risk control systems at the bank.

HSBC's revenue rose 20 per cent from the year-ago period to USD 16.13 billion in July-September quarter of 2012.

The bank said it is putting USD 353 million aside primarily to cover the mis-selling of payment

First Published: Mon, November 05 2012. 17:35 IST