HSBC bank says profits fall in first half

Bank giant HSBC said on Monday that profits fell in the first half because one-off gains were not repeated and after a weaker showing at its investment arm. Net profit dropped to $9.746 billion (7.259 billion euros) in the six months to June 30 compared with earnings after tax totalling $10.284 billion in the first half of 2013, the British lender said in an earnings statement. Reported profit before tax dropped to $12.3 billion as last year's first half benefited from higher gains from disposals and reclassification of HSBC's interest in China's Industrial Bank. Pre-tax profit at HSBC's investment division dropped 12 per cent to $5.0 billion in the first half. HSBC chief executive Stuart Gulliver said that the bank's overall interim results ‘demonstrate the resilience’ of its business model. The Asia-focused lender is pushing on with its savings programme, having announced last year plans to cut costs by a further $2.0 billion to $3.0 billion between 2014 and 2016. Following the results, HSBC's share price was up 0.33 per cent to 631.4 pence on London's benchmark FTSE 100 index, which trading 0.06-per cent higher at 6,682.15 points in mid-morning deals, according to AFP.