27-02-2008
HBOS experiences fall in profits
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Market conditions have affected profit levels at the UK's fourth largest banking group, HBOS.
With profit levels at HBOS affected by declines in the organisation's treasury and retail banking divisions, shares in the group have also been affected. Although the group has reported underlying earnings for 2007 of £5.7 billion, when considered on a pre-tax basis, profit levels at HBOS fell to £5.47 billion - a decline of four per cent.
Today's (February 27th) trading started with a drop of eight per cent on the FTSE 100 market, pushing the group's shares down to 849p. "We are planning on the assumptions that market conditions will remain uncertain throughout 2008," said HBOS. "[However,] during the dislocation in the financial markets in the latter part of 2007, customer deposit growth and the supply of wholesale funding to HBOS remained strong."
HBOS is made up of Bank of Scotland and Halifax, the UK's largest lender of mortgages.