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HSBC Finance Corp. this week reported a net loss from continuing operations before taxes of $1.7 billion for the second quarter ended June 30. The card issuer had net income of $293 million in the same three months of 2007. HSBC Finance Corp. manages the credit card portfolios for HSBC North America and helps develop HSBC's global card operations. The company's card and retail retail-services segment posted net charge-offs of $1 billion for the second quarter. HSBC did not disclose comparable numbers for the corresponding quarter of period last year, nor does it disclose charge-off rates for credit card receivables. Provision for credit card losses during the quarter was $1.2 billion, up 41.7% compared with $847 million during the same period a year ago. HSBC Finance Corp. attributed the provision increase to higher delinquency and charge-off levels caused by an increase in personal bankruptcy filings, continued weakening of the U.S. economy and rising unemployment, among other factors.

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