HSBC Holdings, Europe's biggest bank, has said its bad debt charge last year would be about $1.8 billion higher than expected, or up 20%, due to problems in its US mortgage lending business.
The slowing growth of the US housing market had led to more people not meeting repayments, HSBC said, increasing its liability.
However, the bank said that, aside from its US mortgage business, the rest of its 2006 performance had been in line with expectations.
