It also grew its market share slightly up from 7.5 per cent to 7.7 per cent.
The bank helped first-time buyers complete on around 12,000 properties which it said was helped by the expansion of its intermediary coverage to 870 brokers.
HSBC UK saw £7.4bn of net mortgage growth over the year. The average loan to value (LTV) ratio for new mortgages came to 67 per cent, while the overall mortgage portfolio had an average LTV of 50 per cent.
The bank’s net interest income rose by a third or £1.5bn to £6.2bn while its net interest margin increased to 1.89 per cent, up from 1.53 per cent.
It reported a profit before tax of £3.6bn, a rise on the previous year’s £3.5bn.
The bank’s expected credit loss (ECL) increased by £1.4bn from a £989m release in 2021 to a charge of £482m in 2022. It said this was related to the impacts of the Russia and Ukraine war, economic uncertainty and inflationary pressures.
HSBC UK said mortgages were the least sensitive to economic uncertainty as collateral values, which is the fair value of an asset a loan is secured against, remained “resilient”.
It said credit cards and other forms of unsecured lending were more sensitive to economic forecasts, however, these improved in 2022.
Looking ahead, HSBC Global Research expects the UK’s GDP to fall by 0.4 per cent in 2023, before rising to 1.5 per cent in 2024. Household incomes are still set to fall by 1.1 per cent in 2023, it predicted, but lower oil and gas prices may make this less severe.
It said there would be one more base rate increase to take the Bank of England rate to 4.25 per cent. HSBC said markets predicted the base rate would start to fall in 2024, but suggested this would be too soon as inflation would still be “too high to allow this”.
