HSBC reported a 14 percent drop in third-quarter pre-tax profit on Tuesday, with the banking giant’s bottom line weighed down by legal provisions related to the late Bernard Madoff’s huge investment fraud.

The London-headquartered lender revealed the fallout Monday amid a Luxembourg lawsuit brought by Herald Fund dating back to 2009, when Madoff was sentenced to 150 years in prison for running a pyramid-style scheme.

“The intent with which we are executing our strategy is reflected in our performance this quarter, despite taking legal provisions related to historical matters,” HSBC’s chief executive Georges Elhedery said in a Hong Kong stock exchange filing Tuesday.

The profit of $7.3 billion — down 14 percent from the same quarter last year — reflected an increase in operating expenses

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