HSBC profit plunges in H1 2012

The Eurozone’s enduring financial malaise forced an 8.4% drop in the net income of HSBC Holdings Plc.

Europe's largest bank saw its net income fall to US$8.4 billion in the six months ended June 30, from US$9.2 billion year-on-year after the bank's European operations suffered a pretax loss of US$667 million compared to a gain of $2.15 billion last year.

The bank's pretax profit, however, rose 10.4% to US$12.7 billion in the first half compared to US$11.5 billion last year, boosted by US$4.3 billion asset sales.

Pretax profit in Hong Kong and the rest of Asia-Pacific improved to US$8.13 billion, up US$1.31 billion during the past six months. HSBC’s Asia-Pacific operations accounted for 64% of total pretax profits worldwide compared to 60% year-on-year.

Chief Executive Officer Stuart Gulliver said HSBC has made significant and encouraging progress in key areas. The bank has increased its revenues in faster-growing markets such as Asia, for example.

The bank intends to fire some 30,000 of its staff by the end of 2013, including 3,000 job cuts in Hong Kong, to strengthen its balance sheet.