HSBC posts 10% gain in pretax profit, but share price falls

The stock dipped by 4.4% in London amid disappointment about weak revenues and the potential for a $1.6 billion settlement charge related to the sale of mortgage-backed securities in the run up to the financial crisis.
HSBC could face damages of $1.6 billion on mortgage deals sold from 2005 to 2008
HSBC could face damages of $1.6 billion on mortgage deals sold from 2005 to 2008

HSBC yesterday reported a 10% improvement in pretax profit year-on-year to $14.1 billion in the first half this year, driven by the sizeable cost cuts the bank has made during the past couple of years and lower loan impairment charges.

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