HSBC Holdings’ third-quarter profit fell short of analysts’ expectations, as lower interest rates during a property slowdown, coupled with a one-off provision, weighed on the balance sheet of Europe and Hong Kong’s largest bank by assets.

The bank reported a net profit of US$4.58 billion, or 28 US cents per share, for the quarter ended September, a 25% decline from a year earlier. This missed the US$5.38 billion consensus from a survey of 18 analysts conducted in mid-October. The shortfall was further affected by HSBC’s Monday announcement that it would set aside US$1.1 billion as a one-off provision to settle a lawsuit linked to fraud committed by disgraced financier Bernie Madoff.