HSBC Profit Soars, But Bad Debts are Piling Up

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00016760-hsbc-profit-soars-but-bad-debts-are-pilin/

The UK?s largest bank, HSBC, announced that first-half profits for 2006 were up 18% to $12.5 billion and that the figures had beat analysts? estimates. But the company also reported high levels of consumer credit defaults as the bank?s chairman discussed the ongoing battle with poor consumer credit quality.

HSBC reported a 19% increase in loan impairment charges and other credit provisions. The total for the first half was $3.89 billion.

Chairman Steven Green said that the majority of the charges came from unsecured consumer lending.

For this complete story, please visit http://business.guardian.co.uk/story/0,,1834132,00.html.