UPDATE 3-HSBC sees tough 2010, may rethink US credit cards

* Strong investment bank revenue trend continues April-May

* May "rethink" U.S. credit cards if headwinds stiffen

* 91.2 pct of shareholders approve remuneration report

* Shares down 1 percent

(Writes through with CEO comments, details)

By Steve Slater and Victoria Howley

LONDON, May 22 (Reuters) - Europe's biggest bank HSBC Holdings (HSBA.L) said business will remain challenging for much of 2010 and it may not keep its U.S. credit card arm if the problems facing the business intensify.

HSBC said "strong revenue trends" at its investment bank continued in April and May after a record first quarter, but warned the broader outlook remains unpredictable and will stay tough for a while. "The rest of 2009 and probably much of 2010 will be challenging," Chief Executive Michael Geoghegan said at the bank's annual shareholder meeting on Friday.

HSBC has weathered the crisis better than most rivals thanks to a traditionally strong balance sheet and liquidity, and most of the criticism from about 500 shareholders at the meeting regarded its ill-fated 2003 takeover of U.S. consumer finance company Household and executive pay.

Shareholders backed the bank's remuneration report, although 8.8 percent of investors who voted were against the resolution.

By 1435 GMT HSBC shares were down 0.9 percent at 534 pence, underperforming a flat European bank sector.

HSBC said its U.S. credit card business broke even in the first quarter in "very adverse" conditions, and financial and regulatory headwinds remain.

"If those become too strong, and we are not able to leverage this business more fully on a group basis, we may have to rethink it," Geoghegan said.

That decision is unlikely to be made within the next 18 months, Geoghegan told Reuters after the meeting.

About 36 million of HSBC's 100 million credit card customers are in the United States, and any global cards business with less than 100 million risks being "sub-scale", he said.

But rising unemployment could hurt and U.S. lawmakers are on Friday expected to pass new limits on credit card interest rates and fees. [ID:nN20453226]