HSBC UK reports that its mortgage lending balances lifted by $5bn (£4bn) from a year ago.  

The move takes the mortgage gross carrying amount of the UK arm of the international bank to $161bn (£128bn), according to the group’s 2023 annual report.  

It adds: “We also increased our market share of UK mortgage stock, from 7.4% in 2020 to 8% in 2023, according to Bank of England data.   

“As economic conditions improve and we continue to invest, we are confident in our ability to grow further in these critical markets.”  

This mortgage growth belies a subdued home loan market last year, and contrasts sharply with Barclays, which yesterday reported that new mortgage loans tumbled by a quarter to £22.7bn in 2023.  

The UK is HSBC’s largest mortgage market, accounting for 40% of its global mortgage portfolio, as of September 2023.  

The average loan-to-value ratio on new lending in the UK was 65%, compared with an estimated 53% across its total mortgage portfolio.  

Overall, HSBC UK saw profit before tax jump 84% to $8.3bn (£6.6bn) last year, driven by rising interest rates and a $1.6bn (£1.3bn) provisional gain on the distressed acquisition of technology lender SVB UK, which it bought for £1 last March.  

The wider banking group — which makes most of its profits in Asia — posted an almost 80% jump in its pre-tax profit to $30.3bn (£24bn) in 2023, fuelled by higher interest rates imposed by central banks around the world. 

HSBC group chief executive Noel Quinn says: “We have a strong platform for growth with the opportunities that exist within our two home markets and across our international wholesale, market-leading transaction banking, and wealth management businesses.  

“We are focused on capturing these growth opportunities, improving our earnings sustainability and targeting mid-teens returns in 2024.”