HSBC Bad Debts Hit $10.6 billion, Impedes Profit Growth

http://www.insidearm.com/news/00017210-hsbc-bad-debts-hit-106-billion-impedes-pr/

After a $10.6 billion hit for bad debts, HSBC Holdings, in a profits statement, said its 2006 profits rose 5 percent, just short of analysts’ expectations.

Based in London, its dramatic bad debt portfolio was primarily contributed to by problems in its U.S. mortgage lending. However, in its report, HSBC said there had been no further deterioration in its U.S. mortgage lending since it warned about the worsening problem a month ago, and it was confident the problems would not spread to other areas.

By midday HSBC shares were up 0.3 percent at 889 pence, valuing the bank at 103 billion pounds ($200.9 billion), against a 1.65 percent drop.