HSBC Group reports strong start for 2008

HSBC worldwide operations have made a strong start to the year despite the turbulence in global financial markets. In its interim management statement released in London for the first quarter of 2008, HSBC reported that profit was ahead of the equivalent period last year.

Group Chairman Stephen Green said “Our performance so far in 2008 demonstrates that HSBC’s business resilience in difficult financial markets, our global distribution network, diversified earnings streams and strong capital position are allowing us to support our customers in today’s challenging market conditions. These factors enable us to invest for growth, particularly in emerging markets, and focus on long-term value creation for our shareholders.”

Key highlights in HSBC’s interim statement also included pre-tax profits up in all major emerging markets in Asia-Pacific, the Middle East and Latin America; very good performance by European businesses with the UK retail business increasing pre-tax profit; resilient profitability in Global Banking and Markets; good deposit growth in all geographical regions; and strong capital ratios. On the downside, consumer finance business in the US remains challenging, however, write-downs were in line with expectations.

Michael Geoghegan, Group Chief Executive, said: “I am encouraged by the way we have increased pre-tax profits in every one of the major countries in which we operate in Asia-Pacific, the Middle East and Latin America. Our Global Banking and Markets business was more profitable than in the preceding two quarters and Commercial Banking and Private Banking both had record quarters. Ours is a business with excellent opportunities ahead.”

Alan Richards, CEO of HSBC Bank Malta, said: “HSBC Group has had a strong start to 2008 despite difficult global market conditions. HSBC is one of the world’s largest financial services organisations with a strong capital base, global brand and unique international franchise.

The financial strength of the group, in spite of the difficult market conditions, is good news for Maltese customers and shareholders.