HSBC Holdings Plc, the world's second largest bank by market value, yesterday reported a five percent rise in half-year pretax profit to $10.64 billion.

HSBC, the multinational bank that last year bought out Bank of Bermuda for $1.3 billion, said geographically North America contributed 34.9 percent of the group's total pretax profit, or $3.7 billion.

The Bank of Bermuda fall into HSBC's North American category.

HSBC's European operations contributed $2.88 billion, or 27.2 percent of the total pretax profit, while Hong Kong was the third largest regional profit driver with income of $2.4 billion, a 22.7 percent share of the group's total earnings.

HSBC's $10.64 billion pretax profit compared to $10.12 billion during the same six-month period last year, the bank said in an earnings statement.

Although HSBC does not separately report the Bank of Bermuda's earnings, its half-year report said its acquisition had improved fortunes in its fund administration business which recorded a 74 percent year-on-year increase to $536 million in revenues during the six month period.

The Bank of Bermuda was snapped up by HSBC in February 2004 for two primary reasons: its fund administration and private banking businesses.

At the time of the sale in February 2004, the Bank of Bermuda's fund administration clients in Asia numbered 600 in contrast to HSBC's six fund administration customers in the region.

In addition, the Bank of Bermuda was one of four strategic acquisitions HSBC made in recent years as part of an effort to establish itself in the private banking sector.

HSBC said for the half-year period, private banking business achieved record results of $451 million,a 25 percent gain on the $362 million in earnings from this unit during the same period in 2004.