Monday November 10, 09:33 AM
HSBC says profits rise despite rising US bad debts
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LONDON (AFP) - Global banking giant HSBC (LSE: HSBA.L - news) said on Monday that its pre-tax profits had risen in the third-quarter despite loan write-offs in the United States rising to 4.3 billion dollars (3.3 billion euros).
"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," HSBC chief executive Michael Geoghegan said in comments accompanying the British bank's trading update.
"These are times which underscore more strongly than ever the importance of delivering value to our customers as the industry adapts to slower growth and a changing regulatory environment."
HSBC said that loan impairment charges in the United States rose by 700 million dollars from the second quarter.
Amid "unprecedented turbulence" in financial markets, the bank also noted that write-downs on credit trading positions in the third quarter stood at 600 million dollars, lower than in the second quarter.
HSBC said that its pre-tax profit for the third quarter was ahead of the equivalent period in 2007. However pre-tax profits fell over the first nine months of 2008.
"Continuing uncertainties lie within the financial system itself as it is still unclear whether there are further risk concentrations to be uncovered within the sector as the system de-leverages and economies slow," added the banking group.
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