HSBC Bank Suffers Big Profit Fall

Banking giant HSBC has said profits have fallen by 28% in the first half of this year.

The company has written off £5.3bn of bad debt on its struggling American business and investments hit by the credit crunch.

This has dragged down the firm's pre-tax profits to £5.2bn.

Chairman Stephen Green said the first half of 2008 saw "the most difficult financial markets for several decades".

He added: "HSBC was not immune from the turmoil."

Sky's business editor Michael Wilson said of the latest figures: "A year on from the first indications of the credit crisis, these results are not quite as bad as expected.

"But it's clear as the other major banks report this week, we are still labouring under its severe effects."

HSBC is one of Europe's top banks and it has among the heaviest exposure to the troubled US housing and credit markets.

Source:http://uk.biz.yahoo.com/04082008/140/hsbc-bank-suffers-big-profit-fall.html