Dec. 6 (Bloomberg) -- Shares of HSBC Holdings Plc, the world's third-biggest bank by market value, fell after the company reported third-quarter revenue growth slowed as bad loans rose in the U.S. and the U.K.

The stock, which trades in Hong Kong and markets including the U.S., where HSBC gets its largest share of pretax profit, fell 1.7 percent to HK$142.10 at the close of the Hong Kong stock market, after declining 1.5 percent to 923 pence in London trading.

In the U.S., loan delinquencies and write downs increased from the first part of the year because of more bankruptcies and a weaker housing market, the London-based bank said in a statement yesterday. Trading revenue at HSBC's investment bank also declined.

``Revenue momentum for the group appears to have decelerated more quickly,'' said Merrill Lynch & Co. analysts John-Paul Crutchley, James Invine and Alistair Scarff in a report Dec. 5.

HSBC Chairman Stephen Green, who replaced John Bond in May, has pledged to increase earnings in Asia to counter sluggish growth in the U.S. and record household debt in the U.K. HSBC still gets almost half its profit from the two countries.

The U.S. economy grew last quarter at the slowest pace this year, and Federal Reserve officials have said the housing slowdown may weigh on future growth by removing a source of consumer wealth. Interest-rate increases earlier this year will hurt borrowers with adjustable-rate mortgages, HSBC said yesterday. North America accounts for a third of HSBC's profit and about two-thirds of its bad loans.

HSBC miscalculated some borrowers' ability to repay mortgage loans in the U.S., Finance Director Douglas Flint said in a conference call with analysts.

HSBC's stock has risen 14 percent this year in Hong Kong, lagging the 28 percent gain in the benchmark Hang Seng Index.

To contact the reporter on this story: Michele Batchelor in Singapore at mbatchelor@bloomberg.net

Last Updated: December 6, 2006 03:31 EST