UK banking giant HSBC has been hit with a $3.2bn write-down in Q1 this year, taking its total US sub-prime related losses to over $15bn.
Europe’s largest bank is now fourth on the list of credit losses, behind the beleaguered Citigroup, UBS and Merrill Lynch.
HSBC has also had to make an additional $2.7bn write-down in its Global Banking and Markets arm.
However, HSBC says its profit was ahead of the equivalent period last year despite the turmoil in credit markets.
"Our performance so far in 2008 demonstrates that HSBC's business resilience in difficult financial markets, our global distribution network, diversified earnings streams and strong capital position are allowing us to support our customers in today's challenging market conditions,” group chairman Stephen Green says.
“These factors enable us to invest for growth, particularly in emerging markets, and focus on long-term value creation for our shareholders."
HSBC’s share price in London has climbed 1.73% to 881 following the announcement.IFAonline
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