HSBC Takes $3.4B Hit
HSBC Holdings is taking a larger than expected $3.4 billion third quarter loan impairment charge, $700 million of which is related to unanticipated U.S. real estate secured declines, but the company says the negative developments would be “more than offset” by revenue growth in other areas. U.S. subsidiary HSBC Finance, said in a Nov. 14 report that it has seen a “marked increase in delinquencies” in mortgages originated by its retail branches.
The non-mortgage portion of HSBC Holdings’ overall loan impairment charge was “largely due to branch unsecured loan and cards portfolios,” according to the company.
Tags: Lenders With Problems 2007, Mortgage Backed Securities, Mortgage Defaults, Mortgage Delinquencies
