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HSBC suffers ballooning bad debt charges, mortgage book shrinks

The smallest of New Zealand's home lending banks, HSBC, posted a $3.6 million loss for the December quarter due to ballooning charges for bad loan and its mortgage book shrank.

Tuesday, April 3rd 2012, 4:55PM 1 Comment

by Jenny Ruth

HSBC's latest disclosure statement showed charges for bad loans jumped by $23.3 million in the quarter from just $1.2 million at September 30 and compared with the $4.6 million charge in the December quarter of 2010. In the September quarter, HSBC had written back $0.2 million of previous charges against profit for bad loans.

The latest quarter's loss compares with the $17.2 million net profit it reported for the three months ended December 2010. That meant HSBC's net profit for calendar 2011 fell 30% to $39.4 million.

HSBC's net interest income fell 9.6% in the latest quarter to $19.8 million and it was down 7.7% to $82.6 million for calendar 2011.

HSBC's mortgage book shrank by $11.2 million to $968.4 million in the three months ended December.

Interestingly, it was the safer part of the book which shrank while the riskier part grew - mortgages with loan-to-valuation ratios (LVRs) up to 80% shrank $20.8 million to $933.7 million while those with LVRs between 80% and 90% rose $7.5 million to $25 million and those with LVRs above 90% rose $2.1 million to $9.7 million.

« Credit growth minimal again in FebruaryResimac unlikely to be affected by NZF Group's woes »

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Comments from our readers

On 4 April 2012 at 9:36 am Jeff Royle said:
Hardly surprising as HSBC don't accept deals from Brokers so have a limited channel of distribution.
Commenting is closed

 

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online ▲7.75 ▲6.65 ▲6.35 ▲5.99
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society ▼8.60 6.75 6.40 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 5.95 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.49 6.49 6.49
TSB Special 7.89 5.69 5.69 5.69
Unity 7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.10 6.05 5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.10 6.09 5.69

Last updated: 20 November 2024 9:45am

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