TSB, HSBC profits jump but HSBC mortgage book shrinks
The two smallest home-lending banks both increased net profit strongly during the June quarter, but while TSB Bank maintained its mortgage market share, HSBC's fell yet again as its mortgage book shrank.
Tuesday, October 2nd 2007, 4:49AM
by Jenny Ruth
HSBC's net profit for the three months ended June jumped 87.5% to $9.4 million, bringing its six month net profit to $18.5 million, up 45.4% on the same six months last year.The bank's mortgage book shrank to $2.1 billion at the end of June from $2.23 billion in March which meant its market share fell to 1.5% (using Reserve Bank figures as a proxy for the market) from 1.65% in March.
The size of HSBC's mortgage book will shrink dramatically in the current quarter because it sold nearly $700 million in AMP branded loans to the government's Kiwibank effective from July 1.
TSB Bank's net profit jumped 23% to $10.6 million in the quarter. Its mortgage book grew from $1.7 billion to $1.75 billion, maintaining its market share at 1.26%.
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