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HSBC today said the worst of the global economic crisis has passed as it revealed third-quarter profits were “significantly ahead” of the same period last year.
Chief executive Michael Geoghegan said: “I believe that the biggest jolt has now passed through the global economy. But it is too early to claim victory, especially while unemployment is still rising in the West.
“The world will likely experience a two-speed recovery and emerging markets currently offer the brightest prospects for growth. Indeed, it now seems clear that they will drive the global recovery.”
The bank, which unlike many rivals did not need state aid to survive the financial crisis, did not put a number on its profits.
Its Global Banking and Markets investment banking division enjoyed “a record performance for the year to date” while bad-debt charges on loans to consumers fell to their lowest level since the second quarter of 2008.
In the US, where HSBC was among the first to feel the full force of the subprime mortgage crisis, the charges fell for the first time since the start of 2006. HSBC also announced the sale of its car financing business in the US for $904 million to Santander.
Six weeks ago, it said Geoghegan will move his office from London to Hong Kong as the bank shifts its focus more to Asia and China.
