HSBC fails to impress City as costs rise in 'tough' quarter.

John Flint, HSBC's new chief executive, said the
rise in costs reflected major investment
in new hires and digital banking - REUTERS

HSBC has grown its half-year profits but fallen short of City expectations for underlying earnings after an increase in costs.

Europe's largest lender by assets posted a 5pc rise in pre-tax profits to $10.7bn (£8.2bn) for the first half of the year, up from $10.2bn the year before.

However adjusted pre-tax profits - which strip out one-off costs - were down 2pc to $12.1bn. This was due to an 8pc rise in operating costs to $16.4bn.

Analysts at Keefe, Bruyette & Woods said HSBC had had a "tough quarter" and the City's focus would most likely be on the weakness in underlying profits.

By Iain Withers.

Full story at Yahoo News.