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| HSBC profits rise despite drop in revenues | HSBC profits rise despite drop in revenues |
| (35 minutes later) | |
| HSBC has seen profits rise in the first half of the year, despite a drop in revenues, as it streamlined its business and cut operating costs. | HSBC has seen profits rise in the first half of the year, despite a drop in revenues, as it streamlined its business and cut operating costs. |
| Pre-tax profit at the bank rose 10% to $14.1bn (£9.2bn), despite a 7% drop in revenues to just under $35bn. | Pre-tax profit at the bank rose 10% to $14.1bn (£9.2bn), despite a 7% drop in revenues to just under $35bn. |
| The bank shaved 13% from its operating costs, helped by the sale of non-core businesses and lower bad debts. | The bank shaved 13% from its operating costs, helped by the sale of non-core businesses and lower bad debts. |
| "We have successfully progressed the repositioning of the business," said chief executive Stuart Gulliver. | "We have successfully progressed the repositioning of the business," said chief executive Stuart Gulliver. |
| HSBC is aiming to streamline the bank's operations by focusing on high-growth markets in Asia. The firm, which makes an estimated 90% of its profits outside the UK, said it had closed or sold 11 non-core businesses since the start of the year. | HSBC is aiming to streamline the bank's operations by focusing on high-growth markets in Asia. The firm, which makes an estimated 90% of its profits outside the UK, said it had closed or sold 11 non-core businesses since the start of the year. |
| In total, it has sold or closed 54 businesses since 2011. | In total, it has sold or closed 54 businesses since 2011. |
| By May, the bank had cut 46,000 jobs. It said that it would reduce its headcount to between 240,000 and 250,000 over the next three years. | |
| The profit was slightly below analysts' expectations and the shares, which have risen by over 40% in the past year, fell more than 3% after the results were issued. | |
| HSBC was boosted by a 35% drop in loan impairment charges and other credit risk provisions, compared with the same period last year. | HSBC was boosted by a 35% drop in loan impairment charges and other credit risk provisions, compared with the same period last year. |
| "These results confirm the value which is being delivered from the continuing reshaping of the group and enforcing appropriate cost discipline," added Mr Gulliver. | "These results confirm the value which is being delivered from the continuing reshaping of the group and enforcing appropriate cost discipline," added Mr Gulliver. |
| HSBC said that despite the slower worldwide economic growth currently, it was "well positioned" to take advantage, once it picked up. | HSBC said that despite the slower worldwide economic growth currently, it was "well positioned" to take advantage, once it picked up. |
| HSBC said it would pay a second interim dividend of $0.10 per share, taking the total for the first half to $0.20, up 11% on a year ago. | |
| Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said all the key figures, including headline profit and return on capital, were either "strong or improving". | |
| "The statement is safe and dependable, as is the current aspiration of banking investors." |