HSBC profits up 10% off Asia growth

HSBC posted a 10% rise in first-half profit, beating analysts' expectations on the back of a strong performance in Asia.

The bank said adjusted revenue was up 4% to $30,772m driven by revenue growth in client-facing global banking and markets, principally in equities and foreign exchange.

Earnings per share were down to 48c for the first half of this year, from 48c per share the year before, while dividends per share were 20c, equal to last year.

HSBC, which has been looking to move its headquarters to Asia, and continues to cut underperforming businesses, said it would sell its Brazil unit.

The purchaser will be Brazil’s second biggest private sector bank Banco Bradesco for $5.2bn.

HSBC group chairman Douglas Flint said equity volumes in Hong Kong and China expanded markedly and the Shanghai-Hong Kong stock connect system surpassed all expectations, boosting wealth management revenues in Asia.

HSBC said it was hopeful for a modest improvement in the economy in the second half of the year.

“More accommodating monetary conditions should help the mainland Chinese economy to stabilise after first half challenges. US economic growth is also likely to accelerate,” the bank said in a statement.