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 mark...

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

Andrew Goodwin: It's time for advisers to think differently about innovation

Andrew Goodwin: It's time for advisers to think differently about innovation

'Ours is still a profession that rightly places enormous emphasis on the human touch, relationships and trust'

Andrew Goodwin
clock 04 July 2025 • 4 min read
Altus' Holford urges advisers to reframe concept of advice gap

Altus' Holford urges advisers to reframe concept of advice gap

Traditional models of value, service and delivery are being challenged

Sahar Nazir
clock 04 July 2025 • 2 min read
PA Asks: Do you keep in touch with clients when on holiday?

PA Asks: Do you keep in touch with clients when on holiday?

Plus, targeted support worries and BDMs

Professional Adviser
clock 04 July 2025 • 1 min read