HSBC Holdings set aside $378m to pay a potential fine from the UK regulator for alleged manipulation of currency markets.
This comes as Europe's biggest bank reported a 12% fall in underlying earnings after costs rose.
HSBC today reported an underlying pretax profit of $4.4 billion, down 12% from a year ago, as operating expenses rose 6%. The bank blamed the rise on increases in risk, compliance and related costs.
The bank's $378m provision is for a possible settlement with Britain's Financial Conduct Authority, which HSBC said had proposed a resolution of its foreign exchange investigation.
HSBC is one of six banks in talks with UK regulators to pay about £1.5 billion in a group settlement over the alleged rigging of currency, sources have said.
