ADRs in Focus: HSBC rises with 1Q profit

While HSBC did not release full results, it said it absorbed $3.2 billion in write-downs related to subprime assets. The company did not make a full quarterly report, and will release its first-half results in August.

HSBC ADRs rose $2.43, or 2.9 percent, to $86.50 in afternoon trading. ADRs, or American Depositary Receipts, are securities that allow U.S. investors to trade shares of companies based overseas.

Citi Investment Research analyst Tom Rayner said that was a smaller write-down than in the fourth quarter, and while delinquencies increased, they grew at a slower rate. He added that U.S. credit quality will be less of an issue in the coming quarters, and profits are growing in emerging markets.

Rayner rates HSBC shares at "Buy."

The Bank of New York Europe ADR index picked up 1.75 points to 179.55 as the U.S. market rose.