| CATEGORY: NEWS AND ANNOUNCEMENTS SECTOR: BANKS |
Update: HSBC bad debt charges jump $700m |
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Mon 10 Nov 2008
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LONDON (SHARECAST) - Profit improved at banking titan HSBC during the third quarter despite "unprecedented turbulence" in financial markets, although bad debts leapt by $700m from the previous three-month period.
Europe’s largest bank saw loan impairment charges at its US personal financial services business hit $4.3bn during the three months ended 30 September.
Third quarter profit was higher than a year ago, but the nine month figure was down on the same period last year, although by less in percentage terms than the position at the half year.
Asia, including the Middle East, remained strongly profitable during the quarter, but is displaying signs of slowing down, and retail businesses in Europe remained “robust”.
“Our US results in HSBC Finance were broadly in line with our expectations but current trends point to further deterioration in the near to medium term,” said chief executive Michael Geoghegan.
“Recovery depends on the success of further economic stimulation which is likely to take some time to take effect but we were early in positioning ourselves for this downturn.”
HSBC’s tier 1 capital ratio, a key measure of financial strength, stood at 8.9% at the end of the period, towards the top of its current target range.
“Our results reinforce the importance of maintaining focus on HSBC's core strengths of sound liquidity, capital strength, cost discipline and relationship banking built on harnessing the global capabilities of the group,” said Geoghegan.
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