HSBC announces massive rise in profits

Europe's biggest bank HSBC today shrugged off the impact of the Iraq war and Sars on its business and unveiled a 26% rise in first half pre-tax profits thanks to a major US acquisition.

Following its £8.3 billion purchase of US consumer finance unit Household, HSBC said it would be looking to tap into the overlooked market opportunity of providing banking for the immigrant population in the US.

The London-based bank said it was also looking to expand in the emerging economies of Asia, including India and China and in the Middle East, Mexico and Brazil.

But HSBC warned that mixed signals in current economic data meant it was positioning itself for "modest and uneven" economic recovery.

In a statement, the company said it expected revenue growth to remain subdued in developed markets.

In Britain, where HSBC is one of the big four banks which dominate the high street, the bank said it had gained market share and significantly increased fee income.

HSBC has 90 million customers from more than 9,500 offices in 80 countries and territories.