HSBC posts 28% fall in profits

HSBC, the UK’s largest bank, has reported a 28% fall in profits and has warned the financial markets are “the most difficult for several decades”. The bank reported its results for the first half ended June 30 today (August 4).

It has posted a fall in profits to £5.2bn in first six months of this year, propelled by a £5.3bn bad debt write-off in its struggling American business.

HSBC chairman Stephen Green says the first half of 2008 saw “the most difficult financial markets for several decades”, with significant declines in profits for much of the banking industry. He also adds that the situation is likely to get worse before it gets better.

In the US, HSBC’s financial services arm made a $2.2bn (£1.12bn) loss over the period. It is taking steps to reduce further loss by cutting down future loans for vehicle financing and reducing the size of its branch network.

The bank has taken $15.4bn (£7.8bn) of provisions in the last 15 months, including the risk that mortgages and credit card borrowings to credit crunch inflicted Americans would not be repaid.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here