HSBC UK experiences that its mortgage lending balances lifted by $5bn (£4bn) from a yr in the past.
The transfer takes the mortgage gross carrying quantity of the UK arm of the worldwide financial institution to $161bn (£128bn), in accordance with the group’s 2023 annual report.
It provides: “We additionally elevated our market share of UK mortgage inventory, from 7.4% in 2020 to eight% in 2023, in accordance with Bank of England information.
“As economic conditions improve and we continue to invest, we are confident in our ability to grow further in these critical markets.”
This mortgage progress belies a subdued home mortgage market final yr, and contrasts sharply with Barclays, which yesterday reported that new mortgage loans tumbled by 1 / 4 to £22.7bn in 2023.
The UK is HSBC’s largest mortgage market, accounting for 40% of its international mortgage portfolio, as of September 2023.
The common loan-to-value ratio on new lending within the UK was 65%, in contrast with an estimated 53% throughout its complete mortgage portfolio.
Overall, HSBC UK noticed revenue earlier than tax soar 84% to $8.3bn (£6.6bn) final yr, pushed by rising rates of interest and a $1.6bn (£1.3bn) provisional acquire on the distressed acquisition of know-how lender SVB UK, which it purchased for £1 final March.
The wider banking group — which makes most of its income in Asia — posted an almost 80% soar in its pre-tax revenue to $30.3bn (£24bn) in 2023, fuelled by larger rates of interest imposed by central banks around the globe.
HSBC group chief govt Noel Quinn says: “We have a powerful platform for progress with the alternatives that exist inside our two home markets and throughout our worldwide wholesale, market-leading transaction banking, and wealth administration businesses.
“We are focused on capturing these growth opportunities, improving our earnings sustainability and targeting mid-teens returns in 2024.”
