The personal financial services division of HSBC's U.S. operation booked $6.8 billion in loan impairment and credit risk charges in the first half, according to a new report issued by the company. The London-based bank also reported that its subprime portfolio (housed in "mortgage services") fell 13%, to $31 billion. It said 60% of the decline was due to loan repayments. The bank's personal finance division lost $2.2 billion in the first half. "The U.S. remains a difficult market, with rising unemployment and falling house prices," it said in a statement. HSBC still originates subprime loans, but only through the retail branches of the old Household Finance network.
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