Page last updated at 20:10 GMT, Monday, 10 November 2008

HSBC takes $4.3bn hit on US loans

HSBC logo
HSBC recently announced heavy job cuts

Losses at Europe's biggest bank, HSBC, relating to the US housing market crisis reached $4.3bn (2.7bn) in the third quarter.

The unprecedented turbulence in financial markets continued to present "enormous challenges", the bank added.

HSBC said it was still unclear whether there were "further risks to be uncovered" in the financial sector.

Elsewhere, its battered investment banking business took a $600m hit due to credit crunch losses.

The bank recently announced it was cutting 1,100 jobs worldwide because of the current financial turmoil.

HSBC said its US losses reflected the continuing weak housing market and rising level of unemployment.

'Further deterioration'

The new US losses come on top of a $3.6bn write-down in the second quarter.

These are extraordinary times in our industry
HSBC group chief executive, Michael Geoghegan

In a trading statment, HSBC said its profit for the third quarter was higher than during the equivalent period in 2007, without giving precise figures.

For the nine months ended 30 September 2008, pre-tax profit was lower than in the equivalent period in 2007, it added.

Group chief executive, Michael Geoghegan, said: "These are extraordinary times in our industry."

He said HSBC's US results were largely in-line with its expectations, but "current trends point to further deterioration in the near to medium term".

The bank said that its asset sales and growth in Asia helped offset the worsening US economy.

"These numbers are something of a mixed bag, bringing another set of US home loan write-downs," said Richard Hunter, analyst at Hargreaves Lansdown stockbrokers.

"On the other hand, the contribution from its Asian operations has very much cushioned the blow."

Shares in HSBC fell by 1% to 738.5p in early trading.

Print Sponsor

HSBC terminates $6bn bid for KEB
19 Sep 08 |  Business
Bank giant HSBC axes 1,100 jobs
26 Sep 08 |  Business
Warning as HSBC profits fall 28%
04 Aug 08 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2017 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific