'Tough times ahead', HSBC warns homeowners

Noel Quinn's comments come after HSBC's profits more than doubled to £17bn. Photo: Holly Adams/Bloomberg

Head of HSBC warned that 'more challenging times' lie ahead for UK households as more fixed-mortgage deals end.

The FTSE 100 bank said UK homeowners will be all face more rising interest rates, adding that the outlook for the UK economy remains uncertain.

Noel Quinn, chief executive of HSBC, said: term, and further rate hikes are expected, tougher times are ahead. forward».

His comment came after HSBC's earnings more than doubled to £17bn.

The London-based lender posted a pre-tax profit of $21.7bn (£16.9bn) for first six months of this year, up from $9.2 billion a year earlier thanks to higher interest rates.

The Bank announced a $2 billion share buyback amid favorable results.

On Thursday, the Bank England is ready to raise interest rates to a new 15-year high in an attempt to curb stubbornly high inflation.< /p>

Lenders have come under pressure from politicians and regulators in recent months for failing to raise rates for savers as quickly as for mortgage products at a time when borrowers struggle to pay off their debts .

< p>On Monday, the city watchdog said it would name and shame banks after discovering that less than 30% of interest rate hikes were passed on to savers.

Despite a surge in earnings for HSBC, which earns about two-thirds of its income from its Asian business, the lender warned of an uncertain economic environment ahead.

The bank has set aside $900 million to cover bad loans, including fees associated with commercial real estate in China and its commercial property in the UK. banking.

He added: «There remains a degree of uncertainty about the outlook for the economy, especially in the UK, and we are monitoring the risks associated with our exposure to mainland Chinese commercial real estate.»< /p>

HSBC also said it made a preliminary profit of $1.5 billion on its £1 purchase of failing Silicon Valley Bank UK (SVB UK) in March.

Mr Quinn said: broad profit margins around the world, higher revenue across our global operations driven by strong net interest income, and continued tight cost control.”