HSBC says U.S. turnaround may take until end 2009

LONDON (Reuters) - HSBC said a turnaround in its U.S. business could be delayed until the end of 2009 as a housing crisis puts pressure on other credit, and it would consider selling "periphery" businesses in the U.S. and Europe.

"A year ago we would have said hopefully by the end of 2008 we would be seeing a turnaround, maybe it's the end of 2009 now," said Douglas Flint, finance director.

"It depends on your view of to what extent the U.S. has a recession, and if it has a recession how long will it last," he told reporters on a conference call, adding the key issue is how well employment holds up.

A major problem for homeowners has been fixed rate mortgages adjusting to higher rates. Flint estimated HSBC will have about $4 billion of adjustable rate mortgages resetting this year and the same in 2009.

He said the bank will continue to redeploy capital to emerging markets, potentially through more disposals of units in mature economies.

"There would be a number of businesses at the periphery of the European platform we have at the moment and the U.S. platform, where we would say if someone else thought they could make more of this than we did we would listen," he said.

(Reporting by Steve Slater and Clara Ferreira-Marques)