HSBC profits fall 3.8 per cent in Q2, Brazil sell-off agreed

HSBC announced today that net profit fell 3.8 per cent in the three months to June, as the company agreed to sell its Brazilian business for USD 5.2 billion to Brazil's Banco Bradesco.
Europe's biggest bank announced in June that it would cut its global workforce by up to 50,000 as it exits Brazil and Turkey.
The moves come as HSBC tries to boost profits and move past recent scandals, including the rigging of foreign exchange markets.
In the first half of 2015 net profit dropped 1.3 per cent, although the company emphasised a rise in pre-tax profits, which went up 10 per cent over the six months.

Quarterly profit fell to USD 4.36 billion from USD 4.54 billion in the same period last year, while the half yearly figure fell from USD 9.746 billion to USD 9.618 billion.
"The environment for banking remains challenging," said group chairman Douglas Flint, but added that the bank still held a "privileged position" in global trade and investment.

"We have the financial strength and the right people at all levels of the firm to make the most of the opportunities open to us," Flint added.
HSBC confirmed the Brazil sale in a separate statement to the Hong Kong bourse.
"The sale of HSBC Brazil represents a significant step in HSBC's stated goal to optimise its global network and reduce complexity," the statement said.

CEO Stuart Gulliver added: "I am pleased to be able to announce today a transaction which achieves both a solid financial outcome and swift delivery of one of our stated actions."
HSBC is also mulling the relocation of its London headquarters, with the review due to be completed by the end of the year, the report said.
Shares in the banking group were up 1.36 per cent in early afternoon trading at 70.65 Hong Kong Dollar (USD 9.11).
HSBC was forced in February to apologise for "unacceptable" failings at its Swiss division following allegations that the unit helped rich clients hide billions from the taxman.

It has faced a storm over claims that it helped clients from around the world dodge taxes on accounts containing 180 billion euros (USD 204 billion) between November 2006 and March 2007, in cases that are being investigated in several countries.