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A$12b profit for HSBC Holdings

A$12b profit for HSBC Holdings

(1 August 2012 – Global) Europe’s biggest bank, HSBC Holdings reported a first-half profit rise of 10 percent, lifted by gains on asset sales. Pre-tax profit rose to US$12.7 billion (A$12 billion) from US$11.5 billion a year earlier, the London-based bank said in a statement on Tuesday.

Analysts surveyed by Bloomberg had predicted a profit of US$12.36 billion.

The bank was forced to set aside US$1.3 billion to compensate customers in the United Kingdom.

"We have made substantial and encouraging progress in key areas, increasing revenues in faster-growing markets such as Asia and continue to reshape the organization," chief executive Stuart Gulliver, said in the statement.

Gulliver has overseen more than 28 asset sales since he became CEO in 2011 to focus on emerging economies in which the bank has a greater market share, while targeting US$3.5 billion of cost savings by the end of next year.

The bank in May doubled its target for generating additional revenue from greater co- operation among its four businesses, including corporate and investment banking, to US$2 billion.
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