HSBC profits up 10 per cent despite $17 billion subprime loss
04 Mar 2008
Mumbai: HSBC, the largest bank in the UK, has reported a 10 per cent rise in its annual profit at $24.2 billion (£12.2 billion), up from $22.08 billion the year before.
HSBC, one of the 'top five' banks in the UK, also reported a $17.2 billion (£8.7billion) loss in the wake of the US subprime mortgage loan crisis.
HSBC said the decline in the US housing market hit the value of its loans. The write-down is also the largest for the big-five UK banks as HSBC has large operations in the US.
"The outlook for the rest of 2008 is uncertain," said HSBC chairman Stephen Green, adding, "The economic slowdown and the credit outlook in the US may well get worse before they get better."
HSBC saw strong growth in Asia, the Middle East and Latin America even as the credit crisis hit operations in the US market.
HSBC now plans to focus on the fast growing markets to drive sustainable growth.
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