Europe's biggest bank, HSBC Holdings, said its profit in the third quarter was up from a year ago as growth in Asia helped offset more than $4 billion in bad debts on US home loans.
HSBC said its profits in the nine months to the end of September, however, was lower than the same period of 2007.
The bank said its charge for bad loans in personal financial services in the US rose to $4.3 billion in the quarter, up by $700 million from the previous quarter.
It had been expected to report another near $4 billion hit from bad US home loans as its mortgage book is run down and as unsecured losses rise with unemployment.
Bad debts also rose in its European retail business.
The company's shares were down 0.47 per cent at 743 pence at 8.58am, underperforming the DJ Stoxx banking sector index, which was up 0.67 per cent.
HSBC said global banking and markets, its investment banking arm, was profitable in the third quarter.
Reuters