US Bad loans get the privilege of $4.3 billion more from HSBC

Nov. 14, 2008 - PRLog -- London (Shakespeare Finance) : HSBC Holdings Plc has announced that its profits for the third quarter has seen an upward movement despite the $4.3 billion shield used by it for the US bad loans.

HSBC was able to get more than three quarters of its profits from the emerging world markets.

The United States' unit of HSBC has declined considerably due to consumer and corporate loan defaults, as per a recent statement issued by the company on November 10. The company also announced that its pre-tax profits rose because of Asia lending, sale of assets in France and $3.4 billion in accounting gains on its debt. HSBC had earlier projected $42.3 billion for US bad loans since the heydays of 2006. The bank also remarked that there will be no cut in the dividend rate and it will not be seeking help from the government to raise Capital, as per Michael Geoghegan, Chief Executive Officer of HSBC Holdings Plc.
It will be important to remember that HSBC was one of the two biggest UK lenders that did not passed the benefits of interest rate cuts, after the decision to do so by the Bank of England.

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