HSBC to sell Brazilian unit to Bradesco as second-quarter earnings fall

3rd Aug 2015 07:33

(ShareCast News) - HSBC said on Monday it would sell its Brazilian business to Banco Bradesco, the country's second-largest private-sector bank, in a deal valued at $5.2bn.The sale, subject to regulatory approval, was signed on 31 July and is expected to be completed by June 2016.The announcement came the same day the bank published its second-quarter results, showing a 4% decrease in net profit, which fell from $4.54bn last year to $4.36bn.The company's pretax profit rose 10% in the first six months of 2015 to $13.63bn from $12.34bn a year earlier.HSBC targets $5bn in annual cost savings by 2017 The sale is also part of its effort to pull out from countries where it has not gained enough critical mass. HSBC Brazil has 854 branches and 21,000 employees.