The US housing market downturn could last for at least another year, HSBC predicted on Monday as it revealed it had set aside $5.8bn (£3bn) because of the credit turmoil in the first quarter.

UK Daily View: HSBC seen as bellwether

Peter Thal Larsen analyses the bank’s writedowns and its outlook for US housing

The bank, one of the first to suffer from the meltdown in the US subprime mortgage market, said any recovery in the US housing market was unlikely this year. “We don’t think this is a 2008 event, it’s a 2009 event,” said Michael Geoghegan, chief executive.