HSBC sells up in Brazil as Hong Kong profits rise 10%

HSBC Holdings beat expectations with a 10 per cent rise in first-half profit thanks to a strong performance in Hong Kong and has agreed a $5.2 billion sale of its business in Brazil.

Europe's biggest bank by market value is to sell the unprofitable Brazilian operations to Banco Bradesco, Brazil's second-biggest private-sector bank, for a higher than expected 17.6 billion reais.

HSBC said profit growth was driven by an investing frenzy in Hong Kong among individual customers prompted by China’s soaring markets earlier in the year. HSBC has become reliant on Hong Kong for profits as its businesses in Europe, the US and other emerging markets slow.

The London-based bank has said it is considering moving its headquarters back to the former British colony. – (Reuters)