HSBC Lo Fun in US
HSBC, Europe's biggest bank and the world's largest financial group in terms of market capitalization,
Despite record US bad debts, Hong Kong & Shanghai Banking Corp
delivered a 10% increase in full-year profit, on robust Asian growth.
In a statement, CEO Stephen Green confirmed that the bank's US operations could face further bad debt problems this year,
saying that conditions in the US "may well get worse before they get better".
Finance director Douglas Flint said the US bad debt crisis should come to an end by the middle of 2009,
provided the economic slowdown did not trigger a sharp rise in unemployment.
"It depends on your view of whether the US will have a recession, and if it does, how long it'll last.
If employment holds up, we should see a turnaround in 18 months or so."
Total loan impairment charges at HSBC's US personal financial services division soared by 70% to $11.7 billion,
lifting the group's overall bad debt charge to $17.242 billion, an increase of 63%.
In December write downs were $975 million for the 1st 9 months of the year,
today the investment banking division took a write down of $4.2 billion.
US profits slumped to just $91 million from $4.668 billion in 2006.
The Nattering One muses... a turnaround in 18 months, if employment holds up, what if it doesn't? (it won't.)
Despite record US bad debts, Hong Kong & Shanghai Banking Corp
delivered a 10% increase in full-year profit, on robust Asian growth.
In a statement, CEO Stephen Green confirmed that the bank's US operations could face further bad debt problems this year,
saying that conditions in the US "may well get worse before they get better".
Finance director Douglas Flint said the US bad debt crisis should come to an end by the middle of 2009,
provided the economic slowdown did not trigger a sharp rise in unemployment.
"It depends on your view of whether the US will have a recession, and if it does, how long it'll last.
If employment holds up, we should see a turnaround in 18 months or so."
Total loan impairment charges at HSBC's US personal financial services division soared by 70% to $11.7 billion,
lifting the group's overall bad debt charge to $17.242 billion, an increase of 63%.
In December write downs were $975 million for the 1st 9 months of the year,
today the investment banking division took a write down of $4.2 billion.
US profits slumped to just $91 million from $4.668 billion in 2006.
The Nattering One muses... a turnaround in 18 months, if employment holds up, what if it doesn't? (it won't.)
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