Europe's biggest bank HSBC has reported that its profits rose 10% last year, just below analysts' forecasts.
Strong gains in Asia helped it to absorb a $17.2 billion hit for bad debts due to US housing market problems.
The London-based bank reported a record 2007 pre-tax profit of $24.2 billion, up from $22.1 billion in 2006 but below an average forecast of $24.7 billion.
The bank's impairment charge was up by $6.7 billion, or 63%, from 2006.
HSBC said it suffered an 'exceptionally weak' performance in the US, but it had produced 'exceptionally strong' results in Asia-Pacific, Latin America and the Middle East.
'The outlook for the rest of 2008 is uncertain,' said Stephen Green, the bank's chairman, noting the U.S. economic slowdown and credit outlook 'may well get worse'.
