HSBC profit jumps despite higher bad debt charges, shrinking mortgage
The bank's latest general disclosure statement (GDS) showed net profit rose 19.9% to $12.3 million in the three months ended September, taking net profit for the nine months ended September to $38.4 million, up 38.3% on the same nine months a year earlier.
The September quarter profit was after an additional $2.5 million charge for bad loans, bringing the charge for the nine months to $6.8 million.
Net interest income was up only 6.9% in the September quarter and up 12.3% in the nine months ended September but operating expenses fell 8.6% in the quarter and 6.3% in the nine months.
HSBC's mortgage book shrank another $35.5 million in the quarter to $1 billion at September 30 which compared with $1.22 billion in September last year. HSBC's mortgage book has been shrinking since the June quarter of 2003 when it was $3.02 billion (under the old Basel l rules).
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