HSBC UK posted £2.6bn of new mortgage lending over the primary six months of the yr, because the financial institution stated it noticed increased house mortgage balances however was hit by “aggressive mortgage pricing”.
The UK arm of the worldwide financial institution stated its loans and advances grew by 3% in the primary half of the yr from December, “with development from mortgages and industrial lending, rising market share modestly”.
It added that the common loan-to-value ratio on new lending was 68%, in contrast with an estimated 53% for the general mortgage portfolio.
It added that the present stage of UK inflation, at 3.6%, stays above the BoE’s 2% goal, “and UK shoppers proceed to face the strain of ongoing excessive costs.
“We stay aware of the influence on our mortgage prospects from increased month-to-month repayments pushed by rates of interest which can be anticipated to stay increased than previous to the Covid-19 pandemic.
“Higher charges might scale back mortgage demand throughout key client and enterprise segments, which might result in a deterioration in credit score high quality and weigh on actual property and different asset costs.”
The UK financial institution posted a pre-tax revenue of £3bn, down 7% on a yr in the past, on income of £5.1bn, up 4% over the identical interval.
Overall, Europe’s largest financial institution reported a 26% hunch in first-half pre-tax revenue to $15.8bn (£11.8bn), hit by write-downs from exposures to a Chinese financial institution and Hong Kong actual property, because the group pushes forward with a world restructuring.
HSBC group chief government Georges Elhedery stated: “We’re making constructive progress in turning into a easy, extra agile, centered organisation constructed on our core strengths.”
