LONDON (AP) — HSBC Holdings PLC, which has warned of sub-prime lending trouble in the US, said yesterday that two top executives at its US business have left the company.Europe's largest bank said Bobby Mehta resigned as chief executive of HSBC North America Holdings Inc. and of HSBC Finance Corp., which was formerly Household International Inc. He also stepped down as a director at all HSBC businesses, effective February 15.

Sandy Derickson, head of HSBC Bank USA NA and HSBC USA Inc., has also stepped down, effective immediately, HSBC said.

Earlier this month, HSBC warned of trouble with sub-prime lending in the US and said loan-loss provisions would be 20 percent above what the market had expected, taking them to about $11 billion. Analysts estimated that could cut the bank's full-year profit by $950 million.

HSBC said Mehta will be replaced at HSBC Finance by Brendan McDonagh, previously chief operating officer at the unit.

Paul Lawrence, 44, head of corporate, investment banking and markets, will succeed Derickson, while maintaining his current role. He will report to chief executive Michael Geoghegan and Stuart Gulliver, head of CIBM and group investment businesses globally.

HSBC shares slipped 0.2 percent to close at 907 pence ($17.72) in London.

HSBC, which gets its biggest share of pre-tax profit from the US, bought Household International in 2003 for $15.5 billion to take advantage of rising house prices in the world's largest economy. That business is now eating into earnings as the number of mortgage defaults rises.

Rising interest rates in the US have made it harder for many Americans to repay their mortgages, and therefore leading to more defaults.

HSBC is scheduled to release its full-year results on March 5.