According to the bank, its pretax profit rose 10 percent to $13.6 billion from $12.3 billion a year earlier, even as the company plans to explore ways to increase earnings. Ltd. for about $9.4 billion, and the disposal of its U.S. credit cards business to Capital One Financial Corp. for $2.6 billion.
In the first half of 2015 net profit dropped 1.3 percent, although the company emphasised a rise in pre-tax profits, which went up 10 percent over the six months.
HSBC faces court cases and an EU investigation into its activities in the credit derivatives industry, over allegations the bank helped restrict new entrants into the credit default swap pricing industry. Sluggish asset growth also reportedly prevented HSBC Brazil from gaining market share.
China’s stock markets have helped to drive profits for the bank’s broking business in Hong Kong via the Stock Connect trading link with Shanghai because mainland shares soared prior to their June crash.
HSBC will divest its Brazilian subsidiary HSBC Bank Brasil comprising Banco Multiplo and HSBC Servicos e Participacoes to Banco Bradesco for $5.2bn. HSBC said it expects to make a decision by year-end.
Over the weekend, the bank announced the sale of its Brazilian operations to Banco Bradesco for around $5 billion.
Most exciting investors analysis over HSBC performance this year?
The bank said its performance in July was “satisfactory”, but Chairman Douglas Flint said the banking environment remained “challenging” and the economic environment was particularly uncertain in China and the euro zone.
In HSBC’s annual report this year, Mr Gulliver said it had been “badly let down by a few individuals whose actions do not reflect the vast majority of employees who uphold the values and standards expected of the bank”, adding that the issue was “rightly in the hands of the Serious Fraud Office”.
The bank said it would continue reviewing the possibility of moving its headquarters out of London. The same data, together with transaction monitoring, will also enable the bank to enhance its ability to identify bad actors within the system and reduce the cost of financial crime.
Braesco said it has just over 1 trillion reais ($292.2 billion) of assets, compared with R$160 billion at the HSBC operations it is acquiring. The CEO comes from a working-class background, began his career as an intern at the bank 40 years ago and is known to shun the spotlight.
HSBC has also said it plans to rename the UK retail business, prompting speculation over a return of the Midland brand to the high street more than 20 years after the group took over that business in 1992.
