Tuesday 3 August 2010

HSBC Makes profit of $11.1 Billion

As the bad debts fell the profits of the first six months of HSBC for the year 2010 doubled. The bad debts were the lowest ever since the financial crisis began and the bank’s investments gave great returns too. The profits soared to $11.1bn from $5.02bn the previous year.

HSBC was in profits in every region except North America where it faced losses of $80 millions. Still the losses were lesser than the previous year by $2 billion. A major part of profit contribution has been from their retail and commercial businesses that made profits of about $4.3bn this year. Even the personal financial services business made profits for the first time in past 2 years.

The bank also sold its $4.3bn US car loan portfolio. The bank also increased its lending in order to expand its business and profits. The provisions for bad loans and other credit risks amounted to $7.5 billion downward from $13.9 billion a year earlier.

HSBC’s profits in Asia were up by 20% reaching $5.6 billion; they rose by 36% in Latin America to 900 million and a 19% increase from Europe reaching $2.8 billion. They faced losses of 39% in Middle East of $393 million.

The rise in profits was also great news for the bank’s investors. The shares went up by 4.8% and reached 676.7 pence at the London stock exchange just after the profits were declared. The bank declared dividends of $2.8bn that came to 16 cents a share.

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