12-05-2008
HSBC announces sub-prime related write down
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Financial organisation HSBC has announced details of sub-prime mortgage-related write downs, it has emerged.
Covering the period relating to the first quarter of 2008, the organisation has confirmed write downs totalling $3.2 billion (£1.6 billion).
HSBC has issued details showing that the latest write down relates to exposure to the sub-prime mortgage market in the US; the amount is lower that the write-downs for the period covering the last quarter of 2007.
"I am encouraged by the way we have increased pre-tax profits in every one of the major countries in which we operate in Asia-Pacific, the Middle East and Latin America," said Michael Geoghegan, chief executive for the group, in a report by the BBC.
However, the bank has also confirmed further write-downs; with HSBC's global banking division reporting a total reduction of $2.6 billion.
Established in Hong Kong in 1865, HSBC has its headquarters in London and is currently the largest banking firm in the world, according to Forbes.