LONDON, July 30 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 U.S. law enforcement and regulatory costs and to compensate UK customers for mis-selling.
A U.S. 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 U.S. assets sales and losses on the value of its own debt, was down 3 percent on the year to $10.6 billion. (Reporting by Steve Slater; Editing by Matt Scuffham)
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