UBS is not keen on HSBC’s Household International business in the United States. Now called HSBC Finance, USB predicts more losses. HSBC Finance is laying off workers and firing others. UBS reduced its target by eight percent and kept a neutral rating, partly on concerns about HSBC’s American business Household. It said:

“We are increasing our estimates for 2009 Household losses by $1.4bn to $2.7bn as increasing card and unsecured impairments more than offset declining mortgage charges – and as higher funding costs and a smaller book drag on revenues.

“We believe the group is increasingly focusing on damage limitation rather than growth. Given economic deterioration this seems eminently sensible. However, the corollary is lower earning assets – we move from 8% growth to 5% – and hence lower revenues.”

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