HBOS profits down on wholesale fund price rises

clock •

HBOS, the largest mortgage lender in the UK, says its profits have fallen 4% in 2007, partially as a result of the increased costs of borrowing funds for mortgages.

The news comes as Hector Sants, chief executive of the FSA, warned that banks may never again be able to lend money as cheaply as they have in recent years due to higher costs in the wholesale markets. Overall, pre-tax profits fell from £5.7bn in 2006 to £5.47bn in 2007, sending shares down 8.7% to 643.5p by late morning. Retail business was particularly badly hit, with profits falling 13%, and HBOS blamed much of the drop on the high cost of borrowing funds on wholesale markets. The bank indicated that it will concentrate on profitable mortgage lending in 2008, rather than pursuing m...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Wealth M&A deals triple in six years as PE buyers dominate market

Wealth M&A deals triple in six years as PE buyers dominate market

PE buyers account for nearly three-quarters of deals

Isabel Baxter
clock 14 October 2026 • 2 min read
Dyer Baade & Company's Daniel Baade: £500m-£2bn AUA firms key battleground in wealth M&A's next phase

Dyer Baade & Company's Daniel Baade: £500m-£2bn AUA firms key battleground in wealth M&A's next phase

Fewer but better buyers

Daniel Baade
clock 13 October 2026 • 3 min read
Advice fintech on partnering with providers to target mass market

Advice fintech on partnering with providers to target mass market

Whistle looks at closing advice gap

Sophia Panayi
clock 13 October 2026 • 3 min read