HSBC sold £2.6 billion in new mortgages in the first six months of the year as the bank said it saw higher home loan balances but was hit by “competitive mortgage pricing”.
The UK department of the International Bank said its loans and growth grew by 3% from the first half of December, with “growing mortgages and commercial loans, growing market share”.
It added that the average loan-to-value ratio for new loans is 68%, while the overall mortgage portfolio is estimated at 53%.
It added that the current UK inflation level is 3.6%, still exceeding the BOE’s 2% target, “UK consumers continue to face pressure on continued high prices.
“We are still noting the impact of higher monthly repayments driven by interest rates on mortgage clients, which are expected to be higher than before the 19th pandemic.
“Higher interest rates may reduce loan demand for key consumers and business units, which could lead to worsening credit quality and weigh real estate and other asset prices.”
British banks’ pre-tax profit was £3 billion, down 7% a year ago and revenue was £5.1 billion, up 4% over the same period.
Overall, Europe’s largest bank’s pre-tax profit fell 26% to $15.8 billion (£11.8 billion) in the first half of the year, and the group drove a global restructuring from exposure to the cancellation of banks of China and Hong Kong real estate.
“We are making positive progress in becoming a simpler, more agile, focused organization based on our core strengths,” said Georges Elhedery, CEO of HSBC Group.
