HSBC reported an 86% fall in pretax profit for the third quarter after booking a $1.7 billion loss on the sale of its Brazilian business.

But underlying profits were higher as it benefited from restructuring.

Pretax profit was $843 million, against $6.1 billion (£5 billion) in the same period a year ago.

Adjusted pretax profit rose 7% to $5.6 billion, helped by increased revenue from its investment bank.

The bank’s shares rose 2.5% in Hong Kong after releasing the figures.

Justin Urquhart-Stewart of Seven Investment Management said cuts and restructuring of the past few year showed that “surgery is taking place and it’s making some improvements”.