HSBC loan loss rise said to be tied to Steinhoff, Carillion | Fin24
 
In partnership with
  • Data Market Inquiry

    MTN says it is prepared to defend itself before Competition Tribunal over report.

  • Claims of sabotage

    What we know so far about allegations of sabotage at an Eskom power station.

  • Dudu Myeni

    Court dismisses former SAA chiar's bid to have Outa withdraw from delinquency case.

Loading...

HSBC loan loss rise said to be tied to Steinhoff, Carillion

Feb 20 2018 22:00
Stephen Morris and Alfred Liu, Bloomberg

London - HSBC is the latest global bank to take hits from the fallout of Steinhoff International [JSE:SNH] and Carillion, said a source.

Europe’s largest bank said loan-impairment charges were about $188m higher in the fourth quarter than a year earlier, “largely driven by two individual corporate exposures in Europe”, according to a filing on Tuesday. 

The two companies in question were Steinhoff - the  retailer engulfed in an accounting scandal, which owns businesses in Britain - and Carillion, the UK construction company that imploded earlier this year, said the source, who asked not to be identified. 

A spokesperson for HSBC declined to comment on the cause of the losses.

Without the two loans going bad, impairments would have dropped in the quarter, according to the filing. The losses contributed to HSBC missing its estimated profit in Stuart Gulliver’s final earnings report as chief executive officer.

Steinhoff announced on December 5 that it had uncovered accounting irregularities. The disclosure prompted a plunge in the share price of the Frankfurt- and Johannesburg-listed company, along with the resignations of CEO Markus Jooste and chairperson Christo Wiese.

Carillion’s collapse in January left behind debts of about $2.24bn.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...