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HSBC's profits plummet on sale of Brazilian arm

by November 7, 2016

written by 7^th Nov 16 10:14 am

The bank has implemented a cost-cutting drive

HSBC’s profits plummeted by nearly 50 per cent in the first nine months of this year – thanks to a loss in the sale of its Brazilian business.

The bank’s pre-tax profits came in at $10.6bn, down from $19.7bn last year. The news comes as the banking giant had to fork out $500m for compensation payments for customers in the UK, largely the result of payment protection insurance misselling.

But adjusted profit, which excluded one-off costs, beat analyst expectations rising seven per cent to $5.6bn

The bank has gone at a cost-cutting drive to battle its drop in earnings. It has cut over 1,300 jobs since December.

Chief executive Stuart Gulliver said: “Reported profits were down, but adjusted profits were higher than last year’s third quarter in all four global businesses and four out of five regions.”