HSBC reports increased Q3 profits in all sectors |
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Fri, 02 Dec 2005 01:35
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LONDON - Leading British bank, HSBC Holdings Plc reported on Thursday that all of its worldwide operations were profitable in the third quarter of the year. The biggest bank in the country said that the growth was largely driven by Asian and Middle Eastern markets, while the British market remained tough.
HSBC's major revenues come form the emerging markets and only about 18 percent from the domestic British market, hence the bank is better equipped to deal with the tough conditions prevailing in Britain right now. But the bank was not too sure if the recent rise in consumer lending arrears in the country would end. "It is too early to conclude whether or not delinquency levels have peaked," the bank said in a statement.
HSBC does not give exact figures, but says that all the sectors were well-above the pre-tax profits registered at the same time last year. However, Europe's third biggest bank by market value said that third-quarter revenues were affected to the tune of $206 million because of Hurricane Katrina and by $100 million as a result of the variations in US Bankruptcy laws.
"Through remaining strongly capitalized and liquid and with broad based business and geographic diversification, HSBC remains well placed to continue its profitable growth," the bank added in the statement. HSBC finance director, Douglas Flint added that the cost efficiency ratio of the bank had shown significant improvement over the 52 percent registered in the first quarter. "The underlying (UK) economic picture looks quite soft," he said. "We're seeing a steady increase in smaller companies having difficulties but the run rate is still significantly less than what we have seen in the past."
The bank is now focusing on organic expansion in the emerging markets of Brazil, Mexico and China, "The third quarter saw good conditions for everybody across the marketplace and it's clear from statements thereafter that the fourth quarter has not been as strong, and we'll have a similar experience," Flint said on the future prospects.
HSBC shares were up by 0.7 percent to 932 pence in early trading on the markets.
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