Despite this, HSBC’s half-year results showed its UK bank increased its market share from 8% at the end of 2023 to 8.1% by June
HSBC UK completed £9.4 billion in gross mortgage lending for the first half of the year, down from £11.1 billion in 2023.
Despite this, HSBC’s half-year results showed its UK bank increased its market share from 8% at the end of 2023 to 8.1% by June.
This was also higher than a market share of 7.8% during the same period last year.
HSBC UK’s total mortgage book increased from £126.4 billion in the first half of 2023 to £131.2 billion this year.
The average loan to value of its entire mortgage book was 53%, while the average loan to value of new loans was 67%.
The UK bank’s net interest margin (NIM) came to 2.57% in the second quarter, a slight rise on the 2.56% margin during the preceding quarter. This was also higher than the margin of 2.49% over the same period a year earlier.
HSBC UK reported a profit before tax of £2.95 billion, a 24% decline on its profit of £3.9 billion a year earlier. Excluding a £1.24 billion gain on its acquisition of Silicon Valley Bank, HSBC UK’s profit before tax was 11% higher than in 2023.
HSBC said it was “well-positioned” to capitalise on the opportunity of the UK’s resilient economy, which was showing signs of growth.
Noel Quinn, group chief executive of HSBC, said: After delivering record profits in 2023, we had another strong profit performance in the first half of 2024, which is further evidence that our strategy is working.
We are confident that we have the right strategy and model to grow revenue, even in a lower interest rate environment, and are therefore providing new guidance of a mid-teens return on average tangible equity in 2025, Quinn added.