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HSBC mortgage lending steady as broker originations grow

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  • 05/08/2019
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HSBC mortgage lending steady as broker originations grow
HSBC UK completed £9bn of mortgage lending in the first half of the year – the same volume as the first half of 2018.

 

Broker originations rose to 44 per cent of completions, up from 27 per cent in the same period last year.

Group chief executive John Flint has stepped down and Noel Quinn appointed as interim group chief executive.

Profits after tax were up 18.1 per cent to US $9.9bn.

HSBC did not give an exact reason for the personnel change but has granted Flint “good leaver status”, meaning that he will receive all the bonuses that he’s due.

The bank added that the global economic outlook has changed, citing the impact of Brexit.

“Interest rates in the US dollar bloc are now expected to fall rather than rise, and geopolitical issues could impact a significant number of our major markets. In the near term, the nature and impact of the UK’s departure from the European Union remain highly uncertain,” it said.

 

Improved margins

HSBC reported a £1.6bn growth in its UK mortgage lending book to £95.3bn in the second quarter of the year – up from £86.8bn at the same point last year.

It added that margins had improved from higher interest rates.

Of the total book, around 28 per cent is in Greater London, it holds buy-to-let mortgages worth £2.9bn, mortgages on a standard variable rate of £3bn and interest-only mortgages of £19.2bn.

New mortgage originations average 68 per cent loan to value (LTV) with the average LTV of the total portfolio at 50 per cent.

According to data from UK Finance last week, HSBC increased its mortgage lending by £3.3bn in 2018 to reach £21.5bn – an eight per cent market share as the sixth largest lender.

 

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