HSBC says Q3 profit ahead of yr-earlier level; US unit incurs 271 mln usd loss

Mon. November 10, 2008; Posted: 04:30 AM

HONG KONG, Nov 10, 2008 (XFN-ASIA via COMTEX) -- HBC | Quote | Chart | News | PowerRating -- HSBC Holdings said pre-tax profit for the third quarter to September was ahead of the year-earlier level, but pre-tax earnings for the first nine months of the year were lower than a year earlier.

It gave no actual figures.

Group chairman Stephen Green said HSBC's US business "declined markedly as a result of rising loan impairment charges in its personal financial services operations and from further write-downs within its global banking and markets division."

The US unit, HSBC Finance, suffered a third quarter loss of 271 mln usd, down from a loss of 1.1 bln usd a year earlier.

Loan impairment charges in HSBC Finance's personal financial services operations rose by 700 mln usd to 4.3 bln usd in the third quarter from the preceding quarter.

It attributed the increase primarily to higher provisions for credit losses arising from real estate and credit card lending.

The loan impairment charges included a third-quarter provision of 3.82 bln usd for credit losses, versus 3.13 bln usd a year earlier.

Green said Asia remained HSBC's major core earnings driver in the third quarter, while the group's retail businesses in Europe remained robust.

He said pre-tax profit for the nine months to September was lower than the equivalent period last year on both a reported and an underlying basis, but the difference in percentage terms was less than it was at the end of June.

However, underlying pre-tax profit in Asia, Latin America and Europe for the nine-month period was ahead of the comparable period last year and was strongly capital generative.

(1 usd = 7.8 hkd)

hkburo@xfn.com

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For full details on Hsbc Holdings Plc (HBC) click here. Hsbc Holdings Plc (HBC) has Short Term PowerRatings of 5. Details on Hsbc Holdings Plc (HBC) Short Term PowerRatings is available at This Link.

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