Don't miss

Replay


LATEST SHOWS

INSIDE THE AMERICAS

Export bans hit Brazil amid tainted meat scandal

Read more

FRANCE IN FOCUS

Presidential election: French voters in turmoil

Read more

#TECH 24

Inside Netflix's war room

Read more

FOCUS

French Catholic voters remain faithful to scandal-hit Fillon

Read more

PEOPLE & PROFIT

Growing ambitions: The forces driving India's economy

Read more

#THE 51%

The mistress hunters

Read more

ENCORE!

Michael Fassbender is author Philip Kerr's pick to play Bernie Gunther

Read more

REVISITED

Ecuador: The rush for oil in Yasuni National Park

Read more

FASHION

When fashion meets technology

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)