HSBC's H1 profits rise 10% on bumper Hong Kong results

[HONG KONG] HSBC Holdings reported a 10 per cent increase in earnings for the first half of the year, boosted by bumper profits in Hong Kong as the lender considers whether to move its headquarters from London to the Asian hub.

HSBC also announced the sale of its Brazil unit to Banco Bradesco SA, the country's second-biggest private-sector bank, for 17.6 billion reais (S$7.1 billion) as HSBC seeks to cut underperforming businesses.

Europe's biggest bank said on Monday pretax profits in the six months to the end of June were US$13.6 billion, up from US$12.3 billion a year earlier and well above analysts' average forecast of US$12.5 billion according to a poll conducted by the bank.

HSBC's shares were unchanged in Hong Kong on Monday morning, against a 1 per cent drop in the city's benchmark Hang Seng index.

REUTERS