HSBC takes first-quarter hit

Rising credit losses and lower trading results took a $35 million bite out of HSBC USA Inc.’s profits during the first quarter. Net income for the HSBC North America Holdings Inc. subsidiary fell to $273 million for the three months of 2007, down 11% from the same period last year. Total operating expenses jumped to $843 million from $785 million. The company blamed higher credit loss provisions for its lower quarterly results: HSBC USA set aside $205 million for credit losses, up 31% from the prior year. Total revenues also plummeted to $137 million from $279 million. Trading revenues fell to $137 million, a 58% loss from last year. Total revenues relating to residential mortgage banking hit $94 million, down from $118 million in the prior year.