HSBC takes $700M charge to cover US money-laundering charges | iNFOnews | Thompson-Okanagan's News Source

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HSBC takes $700M charge to cover US money-laundering charges

People walk past a logo of HSBC headquarters in Hong Kong Monday, July 30, 2012. (AP Photo/Vincent Yu)

LONDON - HSBC PLC is to take a $700 million charge to cover the cost of U.S. fines arising from its failure to stamp out money-laundering at the bank.

The provision was announced as the bank reported an 11 per cent gain in pretax profit in the first half of the year, boosted by $4.3 billion in gains from asset sales.

For the six months ending June 30, the bank said Monday that pretax profit was $12.7 billion, up from $11.5 billion a year earlier.

Operating income was up 3 per cent to $43.7 billion while taxes paid more than doubled from $1.7 billion to $3.6 billion.

First-half earnings were also hit by provisions of $1.3 billion for compensating U.K. customers for payment protection insurance.

HSBC shares were down 0.1 per cent at 530.5 pence.

News from © The Associated Press, 2012
The Associated Press

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