Don't miss

Replay


LATEST SHOWS

THE WORLD THIS WEEK

When China Sneezes: World markets rattled by bubble burst (part 2)

Read more

THE WORLD THIS WEEK

Desperate to get to Europe: How to handle migrant surge? (part 1)

Read more

FRANCE IN FOCUS

Behind the scenes of France's National Assembly

Read more

#TECH 24

Saving water, one shower at a time

Read more

FOCUS

Katrina, ten years on: Young survivors still grapple with trauma

Read more

ENCORE!

Has New Orleans got its groove back?

Read more

REPORTERS

Meet the French troops hunting jihadists in Sahel

Read more

#THE 51%

Women redesigning our world: Skyscrapers and changemakers

Read more

REVISITED

Middle East: A West Bank town’s fragile rebirth

Read more

HSBC profits take a dive in credit crisis aftermath

Latest update : 2008-08-04

British-based bank HSBC's profits fell by an expected 28% in the first half of 2008 as losses associated with the US mortgage crisis kept swelling.

LONDON - Europe's biggest bank HSBC Holdings said its first-half profit fell 28 percent, in line with analysts' forecasts, as a $14 billion hit on bad debts on US home loans and asset writedowns countered strong Asian growth.

HSBC said pretax profit in the six months to the end of June were $10.2 billion, down from $14.2 billion a year before. The average forecast in a Reuters poll of seven analysts was $10.1 billion.

By 0905 GMT HSBC's London-listed shares were down around 1 percent at 829 pence.

The bank said the outlook for economies was "highly challenging" after deteriorating progressively in the first half. It predicted growth in emerging markets would hold up "reasonably well, albeit with less momentum than in the recent past".

"Ultimately the real economy will recover from this crisis, although it may get worse before it gets better," HSBC Chairman Stephen Green said in a statement.

The bank's impairment charge was $10.1 billion for the six months, up 58 percent from a year ago, mainly due to losses from its book of US mortgages.

Its investment bank also wrote down $3.9 billion on its exposure to credit trading, monolines and leverage acquisition financing loans. Profits in Global Banking and Markets fell 35 percent from a year before to $2.7 billion.

Date created : 2008-08-04

COMMENT(S)