03-03-2008
HSBC confirms investment writedown levels
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Global financial organisation HSBC has announced writedown levels in relation to credit crisis-linked investments.
Confirming total credit crisis-related losses of $17.2 billion (£8.7 billion), the bank's exposure to the credit crisis is the greatest of the UK's five largest banks.
"The outlook for the rest of 2008 is uncertain. The economic slowdown and the credit outlook in the US may well get worse before they get better," said Stephen Green, chairman of HSBC.
"[However,] for HSBC to achieve another new high in earnings despite these conditions... underscores the value of the strategic focus."
The bank's confirmed annual profits came to a total of $24.2bn, a ten per cent increase from the previous year.
Compared with HSBC's losses, Barclay's confirmed writedown levels of £1.6 billion, while Royal Bank of Scotland confirmed a total loss of £2.5 billion.
HSBC has a history going back to 1865, when it was established as the Hongkong and Shanghai Banking Corporation.