HSBC under pressure to sell US assets
by Richard Kilner
Story link: HSBC under pressure to sell US assets
On Monday HSBC decided not to leave behind its struggling US housing division.
However, the bank has indicated it intends to sell off a number of unprofitable assets.
The firm has come under pressure to sell its poorly performing assets, particularly from shareholding asset management company Knight Vinke who wants more investment in emerging markets.
Results published yesterday add weight to the pressure, as Asian and emerging market business rose, whereas the US arm saw substantial losses caused by the subprime mortgage crisis and ensuing credit crunch.
In total, the bank’s profits rose by 10% to £12.2bn, and led to a dividend increase of 11%.
Earlier in the week HSBC saw massive losses of £8.7bn, mostly due to its poorly performing US division.
In 2006, the US arm made a profit of $4.7bn, whereas the latest results show a profit of less than $100m.
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