HSBC's European operations recorded a 2.9 per cent year on year rise in interim pretax profits to US$1.71 billion.
Europe's contribution to the group's pretax profits decreased from 45.3 per cent to 42.3 per cent due mainly to the partial recovery in Asian profitability and higher profits in Brazil, the bank said.
British-based Midland Bank - which accounts for the bulk of European operations - reported a 12.1 per cent rise in interim pretax profits to GBP900 million (about HK$11.32 billion) despite a near-doubling of provisions for bad and doubtful debts.
The bank, which by the end of next month is to be called HSBC Bank, said its largest division, UK Banking, had seen only sluggish growth in the six months to June 30, with operating profits rising 3.9 per cent to GBP617 million.
The sluggish performance appeared due to a substantial jump in overall provisions, which leapt 94.1 per cent, or GBP64 million, to GBP132 million.
The bank said the increased charge for bad debts was due to higher specific new provisions and lower recoveries.
UK Banking also added GBP30 million to its provisions for contingent liabilities and commitments to cover potential compensation related to a long-running pensions mis-selling scandal that is plaguing the British financial services industry.
