HSBC's mortgage book shrinks but profits jump

The bank's latest general disclosure statement (GDS) showed net profit jumped 34.4% to $12.7 million in the three months ended June, taking net profit for the six months ended June to $25.8 million up 86.4% on the same six months a year earlier.

The quarterly increase was despite a $1.2 million increase in charges against profit for impaired loans, taking such charges for the six months to $4.4 million compared with $3.2 million in the same six months a year earlier.

HSBC's mortgage book shrank to $1.04 billion at June 30 from $1.11 billion three months earlier and from $1.25 billion at June 30 last year. The bank's interest income from total advances to customers shrank to $116.7 million in the six months ended June from $175 million in the previous first half but its interest expense also dropped to $96.2 million from $217 million previously.

The bank's total assets also shrank to $5.26 billion at June 30 from $6.36 billion a year earlier but net assets rose to $25.6 million from $20.2 million.