IMGCAP(1)]
HSBC USA Inc. today reported a net loss of $136 million for the third quarter ended Sept. 30. The company reported a $21 million net profit for the same period last year. Credit card fees earned $215 million in revenue for the U.S. subsidiary of UK-based HSBC Holdings PLC, down 2.2% from $220 million. HSBC USA reported average credit card receivables of $18.2 billion during the quarter, up 2.8% from $17.7 billion last year. But the issuer charged off $277 million in credit card receivables during the quarter, up 52.2% from $182 million last year. That translates to 6.04% net charge offs as a percentage of average credit card receivables during the quarter, up 195 basis points from 4.09% a year ago. HSBC USA increased its provision for losses on credit card receivables by $403 million during the third quarter, up 36.1% from $296 million last year. HSBC Finance Corp., which manages the credit card portfolios of HSBC North America, reported a net loss of $271 million during the quarter, a substantial improvement from a $1.1 billion net loss during the same quarter last year.
