HSBC profit rises 10%, bank selling Brazil unit

HSBC Holdings first half profits topped financial analysts' estimates Monday as Europe's largest announced plans to sell its Brazilian business for $5.2 billion.

However, the London-based also disclosed it had set aside $1.3 billion for investigations into manipulation of the world's foreign-exchange currency market, a continuation of the potential misconduct costs that have shadowed HSBC's financial results.

The bank said Monday that profit for the six months ending June 30 rose 10% to $13.6 billion, or 48 cents per share. Revenue also rose 4% from 2014 to nearly $30.8 billion, the bank reported.

HSBC said Banco Bradesco SA is buying its Brazilian business for $5.2 billion as the bank streamlines its global operations.The sale price was higher than analysts expected.

"Our performance in the first half of 2015 demonstrated the underlying strength of our business," said HSBC Group Chief Executive Stuart Gulliver in a statement released with the earnings results. "Our diversified, universal model enabled the group to deliver increased profitability in spite of slow global growth."

HSBC shares closed up 0.22% at $45.17 in Monday trading.

Continuing investigations and regulatory scrutiny tempered the bank's relatively upbeat outlook.

HSBC said it has been cooperating with investigations in the U.S., the European Union, Brazil, South Korea and elsewhere regarding evidence that its traders may have rigged the foreign exchange market to boost profits for themselves and the bank. In announcing the $1.3 billion set-aside for potential resolutions, HSBC warned that the ultimate penalties "could differ significantly."

In May, five other global banks agreed to plead guilty to a criminal charge and pay more than $5.5 billion in collective penalties to settle foreign-exchange rate-rigging allegations.