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HSBC mortgage lending soars £6bn to hit £21bn

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  • 20/02/2018
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HSBC mortgage lending soars £6bn to hit £21bn
HSBC grew its UK mortgage lending by $8.2bn in 2017 – up approximately £6.07bn using the exchange rate on December 31, when the accounts were dated to.

The lender said this reflected “stronger acquisition performance, including the expanded use of broker relationships”.

Using 2016 data from the Council of Mortgage Lenders (now UK Finance), this will have taken HSBC’s gross lending to around £21.8bn in 2017 and increased its share to approximately 8.47% of the £257bn mortgage market.

HSBC said the quality of its UK mortgage book remained high, with negligible defaults and impairment allowances.

The average LTV ratio on new lending in the UK was 59% compared with an estimated 40% for the overall mortgage portfolio.

 

Interest-only

According to the results HSBC’s book of UK first-charge mortgage loans totalled approximately £88.6bn ($119bn) at the end of the year, with £11.84bn ($16bn) of interest-only lending.

During the year, £125m ($170m) of interest-only mortgages matured, the bank said.

Of these, 1,290 loans with total balances of £44.4m ($60m) were repaid in full, 153 loans with balances of £7.4m ($1m) have agreed future repayment plans and 438 loans with balances of £74m ($100m) are subject to ongoing individual assessment.

 

Global results

Overall, the global bank announced pre-tax profits of $17.2bn (£12.3bn), up $10.1bn (£7.4bn) or 141% on 2016.

The bank was generally positive about prospects for the global economy this year, but added that “rising international tensions, the threat of protectionism and a lack of inclusive growth all have the potential to disrupt economic activity”.

HSBC group chief executive Stuart Gulliver said: “These good results demonstrate the strength and potential of HSBC.

“All our global businesses grew adjusted profits and we concluded the transformation programme that we started in 2015. HSBC is simpler, stronger, and more secure than it was in 2011. It has been my great privilege to lead HSBC for the last seven years, and in handing over to John Flint I am confident the organisation is in great hands.”

Group chief executive designate John Flint added: “These results and the achievements of the last couple of years give us a great platform to build on.

“I am working with the management team and the board to evolve our strategy and execute it at pace, and I will update shareholders on this work by our half year results.

“The fundamentals of HSBC will remain the same as they always have – strong funding and liquidity, strong capital, and a conservative approach to credit.”

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