HSBC’s profit up 10% in first half of the year

HSBC Holdings Plc is nearing a sale of its Brazilian unit to Banco Bradesco SA for close to $4 billion, FT reported, citing people familiar with the talks.

The banking group, which in June gave an “investor update” that contained cost cuts and planned sales, said that reported profit before tax was up 10 percent to $13.6 billion in the six months to June 30, when compared to the same period in 2014.

The results come as HSBC considers whether to move its headquarters from London to Asia.

“Work is proceeding on all of our actions, in particular those aimed at reducing risk-weighted assets, cutting costs and turning around or disposing of underperforming parts of the business”, Gulliver said in the statement.

HSBC’s Hong Kong shares ended the morning session unchanged at HK$69.70.

The market turmoil in recent weeks could mean a gloomier outlook for the second half for the bank, however, if investors’ souring on Chinese stocks curbs their buying of shares and related investment products.

Asia now accounts for two-thirds of HSBC’s profits, and Chief Executive Stuart Gulliver has pinned the lender’s fortunes on a “pivot” to the region and its fast-growing economies.

HSBC operates in 70 countries and has about 51 million customers. It also wants to rebuild its NAFTA profitability, and set up UK ring-fenced bank.