HSBC doubles its slice of home loans as rivals rein in

The high street giant, which also owns phone bank First Direct, has made £6.7 billion of home loans in the first half of the year, taking its market share from 4.5% to 9.5%.

It aims to lend out £15 billion by the time 2009 is up.

That puts it in a position to eventually challenge the Halifax as the mortgage lender of choice for UK borrowers.

Halifax, owned by distraught bank HBOS which had to be rescued from collapse by Lloyds, traditionally sells one in five of all British mortgages. Lately the crisis at the bank and its need to tap the wholesale market for fresh funds instead of relying on cash from savers has seen it pull back.

The extent of the continuing strife at HBOS will emerge when Lloyds reports figures on Wednesday.

HSBC today unveiled profits for the first six months of 2009 of $5 billion (£2.98 billion). Although that is half what it made in the same period last year, it cements the bank's position as one of the strongest in the world.

It is one of the few that hasn't required some level of government support in order to stay alive. Across the globe it took in revenues of $20 billion, down 3%. The bank said results were better than it had expected in an "unprecedented" economic climate.

Chairman Stephen Green added it was likely that "we have passed, or are about to pass" the bottom of the cycle in financial markets.

But he added: "The timing, shape and scale of any recovery in the wider economy remains highly uncertain."

City analysts were impressed. Keith Bowman at Hargreaves Lansdown stockbrokers said: "HSBC is today underlining its credentials as a major force in the world of global banking. Profits have surpassed expectations, questions over the bank's financial strength have been laid to rest via a substantial fundraising, whilst management direction remains unimpeded by government intervention. Furthermore, unlike many rivals, the share price is supported by a dividend payment."

Rivals, including Barclays, have ditched dividend payments lately.

HSBC revealed it is somewhat exposed to the Bernie Madoff "Ponzi" scheme fraud. Various HSBC group companies outside the United States provided services funds which had invested money in Madoff Securities, which means there is a high likelihood of lawsuits. "HSBC considers that it has good defences to these claims," it said.