HSBC Sees US Mortgage Losses Beat Back By Gains in China |
| Published: July 30, 2007, 4:41 pm |
| Tags: miscellaneous, secondary markets, loan origination, loan servicing |
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HSBC Holdings PLC, Europe’s largest bank, said today that first-half profit rose 25 percent, driven largely by investment gains in China. The gains there were enough to offset continued weakeness in the company’s US-based mortgage lending operation, HSBC Finance, according to the company’s earnings statement. From Bloomberg: HSBC, which has offices in 82 countries, reported higher pretax earnings in Europe, Latin America and Asia, including $1 billion of gains from China. At the same time, provisions for bad loans, mostly to U.S. borrowers with patchy credit histories, climbed 63 percent to almost $6.4 billion. Chief Executive Officer Michael Geoghegan said the company is “working through the challenges of subprime lending” … “Over the next 12 months we will have greater clarity” on defaults as “the bulk” of HSBC’s subprime two-year fixed rate home loans in the U.S. reset, Finance Director Douglas Flint said on a [ Full article ] |
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