Global banking giant HSBC reported a seven per cent fall in pre-tax profits after becoming the latest group to show a rise in bad debt charges.

HSBC reported half-year bottom-line profits of £3.22 billion, compared with £3.6 billion a year ago.

The charge for bad and doubtful debts was £455.4 million, lower than the most recent six month period when figures were affected by the financial crisis in Argentina.

Stripping out those charges, operating profits in the six months to June 30 rose six per cent to £3.54 billion as HSBC hailed a resilient performance in difficult market conditions.

Chairman Sir John Bond said: "Our geographical spread of businesses, our financial strength, conservatism and our straightforward character stood us in good stead."

The performance, at the top end of City expectations, reflected results last week from other High Street banks.

Among the Big Four firms, Barclays' pre-tax profits fell and Lloyds TSB had a modest £1 million improvement after bad debt provisions increased. NatWest owner, Royal Bank of Scotland, will issue results tomorrow.

Sir John said: "Without growth in corporate profitability and investment, a stock market rebound is unlikely."

HSBC said its position in Argentina remained of great concern, while it was cautious about the overall credit environment after a variable first half of the year.

HSBC is one of the world's largest banking and financial services organisations, with 7,000 offices in 81 countries and territories.

About a third of the group's profits are generated in Hong Kong.

In the UK, operating profits in personal banking rose 50 per cent to £304 million, with the bank increasing its share of the UK mortgage lending market to 5.7 per cent from 3.3 per cent in the same period last year.

Personal saving balances grew by 23 per cent, with the market share for saving accounts up to 6.6 per cent from 5.9 per cent last year.