You are here: Home - Saving & Banking - News -

HSBC posts record profits of $22bn

0
Written by:
05/03/2007

HSBC, the biggest bank in Europe and a major supplier of UK current accounts, has posted a 5% rise in profits to a record $22.08bn (£11.5bn).

The figures were widely expected by banking analysts and within the range of market expectations, and came against a background of very tough conditions in the US market.

HSBC reported that provision for bad debt in 2006 will be in the region of £5bn – a fifth higher than expected – because of the slowing housing market in the US. The bank has taken some big hits on American mortgage defaults.

HSBC chairman Stephen Green said that the growth in profits was “a testament to the strength and diversity” of the bank, a comment endorsed by HSBC’s tie-up with Indian bank Canara Bank.

“These are massive figures but not out of range of our expectations,” said City analyst Colin Perry. “We are talking about the second biggest bank in the world here and a huge supplier of UK current accounts, for example.”

Richard Hunter, head of UK equities at Hargreaves Lansdown, also sounded positive on the announcement. “The collective sigh of relief in response to these numbers was reflected by an early uptick in the share price, very much against the flow of the market,” he said.

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
‘Bailiffs could break in’ if new laws are introduced

Bailiffs, already mistrusted by many people in the UK, could be given new powers to enter properties and seize goods if...

Close