HSBC to axe 25,000 jobs despite pre-tax profits rise

The announcement came as the bank reported pre-tax profits for the first six months of the year of $11.5bn, up 3% on the $11.1bn the bank made a year earlier.

HSBC said it did not expect any of the new job cuts to fall in the UK.

The bank had already announced 5,000 job cuts, 700 of which are in the UK.

It said it is closing its retail banking operations in Russia and Poland as part of plans to save $2.5bn-$3.5bn by 2013.

On Sunday, it announced the sale of 195 US retail branches, primarily in New York, to First Niagara Bank for about $1bn.

Following the better-than-expected results and job cuts announcement, HSBC shares rose 3.4% in early London trading.

'Right direction'

Revenue for the first half was $35.7bn, while the bank was profitable in all global regions.

In the UK, pre-tax profits for the period were £843m, an increase of 29% on a year earlier.

The bank said its global commercial and retail banking operations had performed well, but investment banking profits had slipped.

"I am pleased with these results, which mark the first step in the right direction on what will a long journey," said group chief executive Stuart Gulliver.

HSBC is the first of the UK's major banks to publish its half-year results, with Lloyds Banking Group, Royal Bank of Scotland and Barclays all reporting this week.