HSBC kicks off the earnings season, with their results for the first 6 months coming later today.  Results apparently look good.

Bloomberg.com: U.K.

Net income at London-based HSBC probably rose 8.1 percent to $8.21 billion, according to the median estimate of 12 analysts surveyed by Bloomberg. Edinburgh-based Royal Bank’s profit climbed an estimated 14 percent to 2.9 billion pounds ($5.4 billion) and earnings at London-based Barclays probably increased 16 percent to 2.14 billion pounds. HSBC will post its results later today.

The banks hired about 4,000 people for their securities units and spent more than $12 billion on acquisitions in Asia, Latin America and Africa since the start of 2005 to boost earnings growth. Profits in the U.K. are being crimped by bad loan charges as personal bankruptcies increase amid a record 1.2 trillion pounds of household debt.

“The investment banking businesses of HSBC, Royal Bank of Scotland and Barclays should continue to be one of the areas that will generate growth,” said Euan Stirling, who helps manage $158 billion at Standard Life Investments in Edinburgh. “The concern for U.K. banks centers on consumer bad debts.”

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