HSBC: Emerging markets 'offer best growth prospects'
Tuesday, 10 November 2009 12:00
HSBC has warned emerging markets will emerge from the recession faster than the West and this may lead to a 'two speed economy'.
The bank said profitability was stronger than expected over the last nine months in an upbeat trading statement but warned emerging markets could leave the West behind.
Group 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."
Loan impairments have fallen and credit performance has now stabilised in the US, HSBC added.
Profits are down on last year but underlying conditions are improving, the banks said.
HSBC refused government aid at the height of the credit crisis, along with Barclays, which is also on track for bumper profits this year.
Comments
Newsletter sign up