HSBC will unveil more heavy losses at its US sub-prime lender Household this week, as its customers continue to reel from rising unemployment and further falls in the value of their homes.

The global banking giant is expected to say conditions remained treacherous in the first three months of the year in the sub-prime market, leading to rising bad debts across Household’s mortgages, credit $10.5bn of remaining goodwill in Household and took $16bn of writedowns.

The bank has already warned that there would be further write downs within Household’s $100bn portfolio.

Sunday Telegraph