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HSBC warns on US bad debt provisions

By Peter Thal Larsen in London

Published: February 8 2007 00:35 | Last updated: February 8 2007 10:29

VIDEO

Jane croft

Jane Croft looks at HSBC’s mortgage business

HSBC shocked investors on Wednesday night by warning that its US mortgage business would push group bad debt provisions for 2006 $1.75bn (£888m) higher than expected.

In an unprecedented trading update, issued several hours after a board meeting, HSBC said pressure on house prices and rising repayments had prompted it to review its level of bad debt charges.

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