The additional provisions will be made alongside a group trading update in an attempt to demonstrate that overall profitability remains strong.

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Unlike the investment banks that have written off almost $50bn in sub-prime loans, HSBC's exposure is directly through the mortgages held on its books. Its investment banking exposure is believed to be minimal.

Analysts expect bad debt provisions for the three months to September to rise 83pc to $2.52bn.

Credit Suisse estimates that the US division will report a quarterly loss of $492m.

HSBC chief executive Michael Geoghegan pledged in February to resolve the sub-prime problem within three years and declared: "The buck stops with me."

However, he is not likely to come under pressure from shareholders. One said: "He's not under pressure to walk because of this. It will just be a qualification of the sums involved as conditions have deteriorated since February."

Some analysts fear the problems will have spread from mortgages to unsecured lending as falling US house prices infect consumers' creditworthiness.

Antony Broadbent, an analyst at Sanford Bernstein, said: "Our fear is that there will be a big move in the unsecured book."

The shares fell 6½ to 842½p.


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