HSBC takes a South American hit
(Hong Kong) - HSBC Holdings has reported a 14 percent drop in 2001 profits following a US$1.12 billion charge for its Argentina unit.
Pre-tax profits fell to US$8.807 billion in 2001 from US$10.30 billion in 2000, following a loss in Argentina and a US$575 million provision that HSBC made for a lawsuit against its US unit - Republic New York.
The Bank has taken a conservative view on crisis-ridden Argentina, with a US$520 million loss due to the peso's devaluation and a US$600 million general provision.
Many of the Bank's markets in Asia are also in recession and Hong Kong, in particular, has been hit by a rise in personal bankruptcies and a telling mortgage price war.
Hong Kong subsidiary Hongkong and Shanghai Banking Corporation has reported a one percent rise in net profit to HK$26.24 billion (US$3.4 billion) in moving assets into higher-yielding bond investments and credit card loans.
European operating profits before provisions declined marginally to US$3.69 billion from US$4.04 billion, while profits in North America were up significantly at US$1.23 billion from US$963 million.
The Bank has taken a conservative view on crisis-ridden Argentina, with a US$520 million loss due to the peso's devaluation and a US$600 million general provision.
Many of the Bank's markets in Asia are also in recession and Hong Kong, in particular, has been hit by a rise in personal bankruptcies and a telling mortgage price war.
Hong Kong subsidiary Hongkong and Shanghai Banking Corporation has reported a one percent rise in net profit to HK$26.24 billion (US$3.4 billion) in moving assets into higher-yielding bond investments and credit card loans.
European operating profits before provisions declined marginally to US$3.69 billion from US$4.04 billion, while profits in North America were up significantly at US$1.23 billion from US$963 million.
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