HSBC Profits Up

    March 1, 2005

HSBC Holdings’ annual profit went up 35%, thanks to an improved Hong Kong economy, and U.S. operations.

Net income went up to $11.84 billion, or $1.07 a share, from $8.77 billion, or $0.83 a share.

“Chairman John Bond, 63, is expanding in countries such as China and India to counter falling lending margins and higher loan loss provisions at the bank’s Household International Inc US business. HSBC bought House-hold, a lender to consumers who can’t obtain credit from other banks, for US$15 billion in 2003.

Shares of HSBC gained 0.1 percent last year, the second-worst performers on the 10-member FTSE 350 Banks index, which rose 6.8 percent. The shares rose US$0.07 to US$8.93 on Feb. 25, giving the bank a market value of about US$190 billion.”

“In 2005 the group expects consumer spending growth to slow across much of the western world, bringing increased competition and pricing pressure,” said the bank.

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