LONDON, Nov 3 (Reuters) - HSBC Holdings set aside$378 million to pay a potential fine from the UK regulator foralleged manipulation of currency markets, as Europe's biggestbank reported a 12 percent fall in underlying earnings aftercosts rose.
HSBC on Monday reported an underlying pretax profit of $4.4billion, down 12 percent from a year ago, as operating expensesrose 6 percent, which the bank blamed on increases in risk,compliance and related costs.
The bank's $378 million provision is for a possiblesettlement with Britain's Financial Conduct Authority, whichHSBC said had proposed a resolution of its foreign exchangeinvestigation. HSBC is one of six banks in talks with UKregulators to pay about 1.5 billion pounds in a group settlementover the alleged rigging of currency, sources have said. (Reporting by Steve Slater; Editing by Matt Scuffham)
HSBC Holdings (HSBA)