HSBC has announced further write downs of £1.33 billion as it continues to feel the effects of the credit crunch. The bank was also charged £1.6 billion for its customers failing to meet loan repayments . However, the bank still managed to improve on its first quarter profits from last year, largely due to its success in emerging markets and Europe .
HSBC’s North American operations, however, suffered heavily as a result of the write downs and the charge for failed loan repayments . The bank’s difficulties following the sub-prime crisis caused it to issue its first ever profits warning last year, though its strong performance in certain sectors saw share prices rise by nearly 2 per cent.
As a result of the latest performance results, HSBC has announced its predictions that the US will fall into recession at some point in the coming year.
The news is not only bad news for HSBC, but also for the British government and the British taxpayer. The £10 billion write downs already announced by HBOS, the Royal Bank of Scotland and Lloyds TSB is likely to result in a £2.5 billion shortfall in corporation tax received by the Treasury .
HSBC the Latest Bank to Announce Further Write Downs
HSBC the Latest Bank to Announce Further Write Downs
Fri, 16 May 2008
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