Ahead of its 2006 earnings release, HSBC Holdings Plc said late Wednesday that 2006 loan impairment levels at Europe's largest bank will exceed analyst expectations by more than 20 percent due to troubles in its U.S. mortgage business. Analysts had generally expected HSBC to report loan impairment charges and other credit risk provisions of $8.8 billion; the bank cited rapidly-increasing delinquencies and foreclosures in its U.S. mortgage banking operations as the culprit behind increasing losses. HSBC acquired Household International Inc., primarily a subprime mortgage banking originator and servicer, in 2003 as part of a deal worth $15.5 billion. HSBC said that the impact of slowing house price growth is being reflected in accelerated delinquency trends across the US sub-prime mortgage market, particularly in the more recent loans, as the absence of equity appreciation is reducing refinancing options.