HSBC's profit jumps despite bad loans ballooning

HSBC’s net profit for the three months jumped 44.9% to nearly $12 million, bringing net profit for calendar 2008 to $39.8m, a 10.7% increase on the previous year.

The bank’s charges against profit for impaired loans jumped to $6.5 million at December 31 from $3.75 million at September 30.

Gross impaired assets jumped to $33.1 million at December 31 from nearly $13 million at September 30, although they were still only 0.53% of its total $6.19 billion loan book.

Total provisions for impaired loans rose to $13.8 million from $10.65 million. HSBC gave no breakdown of the types of loans which are impaired.