HSBC write-down £8.7bn March 3rd, 2008

HSBC has written-down £8.7bn due to the size of its exposure to US markets and the decline in the US housing markets and hence the value of its loans. The credit crunch leaves HSBC cautious in its outlook for 2008 and believes the situation could get worse before it gets better.

 Despite the level of write-downs HSBC, the UK’s largest bank saw its profits rise by 10% to £12.2bn. The fundamentals of HSBC remain strong and to send a positive message to the market it has increased dividend payments to shareholders by 11%.