The bank, which has its headquarters in London, had to set aside £827m to pay damages relating to the Bernie Madoff ponzi scheme after partly losing a court battle last week.

But in the UK lending business its Q3 report looked more positive.

HSBC reported its mortgage balances were up by £4.58bn and commercial lending by £4.28bn over the first nine months of the year to the end of September.

In the UK, the bank’s net interest income, a measure of the difference between the rate it makes on lending and the rate it pays savers and other depositors, increased by £0.38bn or 6%.

The report says this is a reflection of growth in its residential and corporate loan books as well as deposits, which helped to mitigate lower interest rates and margins on mortgages.

Group chief executive Georges Elhedery says: “We are becoming a simple, more agile, focused bank, built on our core strengths.

“The intent with which we are executing our strategy is reflected in our performance this quarter, despite taking legal provisions related to historical matters.

“The positive progress we are making gives us confidence in our ability to upgrade our targets and we now expect 2025 RoTE (Return on Tangible Equity) excluding notable items to be mid-teens, or better.

“We remain fully focused on helping our customers navigate new economic realities, putting their changing needs at the heart of everything we do.”