LONDON: HSBC, Europe’s biggest bank, has set aside an additional $1.15 billion to cover potential US fines for money laundering by its Mexican unit and penalties for mis-selling payment protection insurance.

The provisions were announced Monday alongside a 52 percent fall in third-quarter profit to $2.5 billion.

The bank has raised its total provision for money laundering by $800 million to $1.5 billion, though it warned that the cost could go even higher. It also set aside an extra $353 million to compensate UK customers, raising the total estimated cost to $1.8 billion.

HSBC says it is also likely to face criminal charges in the money laundering case.

HSBC shares were down 2.5 percent in early trading in London.