LONDON (Reuters) - Europe's biggest bank HSBC Holdings said its profit in the third quarter was ahead of a year earlier as growth in Asia helped offset almost $5 billion in bad debts on U.S. home loans and asset write downs. HSBC said their profit in the nine months to the end of September was lower than the same period of 2007.
Its tier 1 capital ratio was 8.9 percent at the end of September, near the top of the bank's 7.5-9 percent targeted range, and the bank said it was "a major recipient" of deposit inflows in the current financial market turmoil. HSBC said global economic growth will continue to slow during "the next few quarters as recession takes hold in several mature economies." Asian growth will slow but is likely to remain "relatively more resilient," it said.
By 0905 GMT its shares were up 0.1 percent at 747 pence. HSBC said its charge for bad loans in personal financial services in the U.S. rose to $4.3 billion in the quarter, up by $700 million from the previous quarter.It had been expected to report another near $4 billion on bad U.S. home loans as its mortgage book is run down and unsecured losses pick up as unemployment rises.