HSBC sees Q1 profits rise

by Richard Kilner

Story link: HSBC sees Q1 profits rise

A ray of economic sunshine penetrated the clouds yesterday, when HSBC revealed that its performance for the first quarter were better than those of the previous year.

Despite predictions of a forthcoming US recession, its share price rose by nearly 2% to reach 882p.

The bank, which is the largest in Europe, has recorded multi-billion pound write-downs from exposure to the sub-prime mortgage crisis.

However, these have been more than offset by strong performances in its businesses outside Europe, such as Latin America and Asia-Pacific.

According to HSBC, the US will continue to see its housing market decline over the course of 2008.

However, it has forecast the beginnings of a recovery in 2009.