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HSBC USA Inc. today reported a net loss of $174 million for the second quarter ended June 30. The card issuer had net income of $290 million in the same three months of 2007. Fee income from the bank's credit card business increased 6.6%, to $211 million from $198 million. Total provision for credit card losses during the quarter were $353 million, up 73% compared with $204 million during the same period a year ago. HSBC USA attributed the increase to growing delinquencies and charge-offs caused primarily by rising bankruptcy filings and the impact of a weakening U.S. economy. The charge-off rate for credit card receivables in the second quarter was 6.09% of loans outstanding, up 218 basis points from 3.91% during the same period a year ago. The company reported $328 million in charge-offs, up 48.4% from $221 million. Parent HSBC Holdings Plc reported a profit of $10.3 billion for the six months ended June 30, a decrease of 27.5% from $14.2 billion during the same period last year. HSBC North America Holdings Inc. had a loss of $2.9 billion for the first six months of this year. The company generated a $2.4 billion profit during the first half of 2007.

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