HSBC has posted an increase in earnings that was lower than expected.
The bank's pre-tax profit rose by ten per cent in the first half of 2013 to £9.2 billion ($14.1 billion) as its three-year cost-cutting scheme paid off, while losses on bad debts we reduced.
Chief executive Stuart Gulliver is almost three years into a restructuring plan for the company and has sold or exited 54 businesses in that period. Overall, he has cut $4.1 billion in annual costs and is making progress on returns.
The institution, which is the largest in Europe based on market value, was expected to reach as much as a 15 per cent rise in earnings. It also said it may have to pay $1.6 billion in damages over an upcoming US lawsuit.
Shares in the firm dropped by more than four per cent as a slowdown in emerging markets contributed to a 12 per cent fall in revenues in the first half of 2013.
By Gary Cooper