HSBC counts cost of crunch

BANKING giant HSBC said it has made a "solid" start to 2008, despite announcing an additional £3 billion of losses linked to the credit crunch.

The firm took the losses from its US consumer finance business as well as write-downs on mortgage-backed investments hit by the financial turmoil. Despite saying it had increased pre-tax profits in all of its major emerging markets it admitted that the outlook for the rest of this year is "unusually difficult" and forecast that a US recession is "increasingly likely".

Stephen Green, HSBC's chairman, said: "We remain alert to the risks but also see opportunity ahead. HSBC will continue to position itself in those markets and businesses where we expect sustainable long-term growth, in line with our strategy."