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HSBC lends £2.8bn of mortgages in Q1

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  • 07/05/2013
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HSBC lends £2.8bn of mortgages in Q1
HSBC advanced £2.8bn in new gross mortgage lending in the first quarter of 2013 as profits doubled, according to the global bank’s interim results.

The direct-only lender identified the UK residential mortgage market alongside commercial banking as an important growth area. The average mortgage loan-to-value remained stable, at 51.7%.

Group chief executive Stuart Gulliver said the lender had enjoyed a good start to the year: “While continuing uncertainty in the global economy has created a relatively muted environment for revenue growth, we have increased revenue in key areas including residential mortgages and commercial banking in both our home markets of Hong Kong and the UK, and in our financing and equity capital markets business.”

HSBC reported profits before tax of US $8.4bn – an increase of 95% compared with the first quarter of 2012.

Revenue rose 14% on the same time last year to $18,416m. The cost of loan impairment charges and other credit risk provisions halved from $2,366m in Q1 2012 to $1,171m in Q1 2013.

HSBC lent £16.4bn of new gross lending in 2012, 24% ahead of 2011 and representing an 11.5% market share.

In March, the direct-only lender announced it was restricting interest-only lending to customers with an income of £100,000 or more, or £50,000 in savings held with the bank.

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