The bank’s market share for new mortgage lending was up from 8.75% in 2010 and it said that is has increased its total mortgage lending in the UK by more than 75% since 2007 and increased its market share by 7.1%.
By comparison, other major lenders including Lloyds Banking Group and RBS have reported falling or stagnating mortgage lending.
HSBC said that £2.8bn of its total mortgage lending was to first-time buyers, up from £2.6bn in 2010.
HSBC has pledged to lend at least £15bn to UK house buyers in 2012, of which £3bn will be dedicated to first-time buyers.
If it meets this target, it will increase its mortgage lending a further 13.6% on 2011 and take its estimated market share to more than 11% – a record for the bank.
The strength of its lending in the UK underpinned a leap in pre-tax profits for the UK division of the bank, which soared 17.2% in 2011 to £1.547bn.
In addition, its commercial lending rose 5.8% in 2011, with total lending to UK businesses reaching a record £49.38bn, exceeding its Merlin lending target of £38.8bn. SME lending rose 15% to £11.94bn.
HSBC said that, while it significantly increased lending across both retail and commercial customers, its asset to deposit ratio remains at 83.3%, which allows it to self-fund its lending. It claimed that it is the only major UK bank with an asset to deposit ratio of less than 100.
Joe Garner, head of HSBC UK Retail Banking, said: “Despite the ongoing challenging economic conditions, during 2011 HSBC used its unique international strength to lend record amounts to both UK businesses and individual customers, and critically our net lending to businesses grew against a backdrop of a shrinking market.
“We remain fully committed to helping the UK economy continue to recover and we will continue to support our customers through the challenges ahead.”
