HSBC’s total payment protection insurance (PPI) provisions have increased by £66m ($111m), bringing the running total since April 2011 to £2.1bn.
The PPI bill has risen higher than analysts’ forecasts and was announced alongside HSBC’s second quarter results.
The amount is less than competitors Lloyds, Barclays and RBS, who have set aside £10.4bn, £4.9bn and £3.2bn respectively.
Douglas Flint, HSBC chairman, expressed displeasure with the changing regulatory environment and the risk-averse effect it is having on individuals’ decision-making.
"When you look at the aggregate of everything that is in train at the moment it’s a very full agenda and what we are saying is please take account of what we already have on our plate and be aware of the glide path of many reforms already there," he said.
HSBC was fined by US regulators in 2012 for breaking anti-money laundering rules and breaching sanctions and is also being investigated over manipulating the Libor interest rate.
"Risk management is the bread and butter for banks, but there is an increasing fear of zero tolerance and future censure," a bank spokesperson said today.
There is currently no deadline set for claims of mis-sold PPI and the HSBC spokesperson said the amount of claims had remained "broadly static in the last quarter".
HSBC said it has 6,000 compliance staff globally and could not specify how many of these are dedicated to PPI claim processing.
A pre-tax profit of $565m for the second quarter was reported, down by about $250m compared to the year ago period.
Revenue also fell by 4% year-on-year to $31.4bn.