HSBC reported a pre-tax profit amounting to US$7.1 billion for 2009, and its market share of net new mortgage lending increased to 11 percent.
HSBC had a new mortgage share of 9.5 percent as at June 2009.
The bank’s annual result shows that the pre-tax profit is down by 24 percent, compared with a US$9.3 billion recorded profit in 2008. But the pre-tax profit, excluding write-downs, increased 56 percent to US$13.3 billion from US$4.7 billion.
About £15 billion was made available for new mortgage lending in 2009, compared to £12.8 billion in gross lending in 2008.
HSBC’s net lending reached £8.98 billion last year from £10.1 billion in 2008, with less than 55 percent average LTV on new businesses.
A HSBC spokesperson said: “This makes us the second largest net new lender in to the market last year, after Royal Bank of Scotland, but larger than Santander, Lloyds Banking Group and Barclays.”
Its loan impairment charges also rose to $26.5 billion from $24.9 billion in 2008.
HSBC’s group chief executive, Michael Geoghegan, said that “in the UK, recession tightened its grip on the economy.”
“While the downturn lasted longer than in many other developed markets, low interest rates and quantitative easing helped to moderate its impact for borrowers.”
“However, the low interest rate environment also negatively affected our deposit spreads.”
“HSBC continued to support its customers through this challenging period,” said Mr. Geoghegan, adding that the bank makes no apology for managing its balance sheet conservatively.
He also said that HSBC’s philosophy is to take deposit first, and then lend. However, he admits that the current low interest rate affects the bank’s short-term goal.
“But I am confident that the liquidity this gives us will prove to be one of our strongest advantages during the next stage of the economic cycle, as new opportunities to grow revenues emerge and a more normal interest rate environment returns,” he added.
HSBC moved its head office to Hong Kong in January, which the bank said reflects the changing shape of HSBC’s operations.