HSBC profits hit £6.99bn

Banking giant HSBC has posted a 13 per cent rise in first-half pre-tax profits to £6.99 billion, beating analysts forecasts.

It followed the offsetting by its Asian and commercial banking businesses of tougher UK and US conditions.

The profits increase came despite its bad debt provisions rocketing 63 per cent to £3.12 billion.

The bank said growth was driven by an "excellent performance" in Asia - where profits in Hong Kong rose by a quarter and in the rest of Asia-Pacific by 37 per cent - and in its CIBM investment bank arm, where profits rose 29 per cent to £2.07 billion.

HSBC said it is cautious in its risk appetite, that excess liquidity in financial markets would lead to "further asset price dislocation" but that US weakness had not constrained economic growth elsewhere.

HSBC is the first of the "Big Five" banks reporting results this week. The banking giants are expected to post more than £20 billion in pre-tax profits between them.

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