UK bank endures £180m credit-crunch blow
Halifax Bank of Scotland shrugged off a £180m (€250m) credit-crunch blow today and said it was on track for a "good" full-year performance.
The last of the UK's "big five" banks to update on trading said underlying earnings would meet market expectations despite the write-down on subprime-backed bonds and other investments hit by the turmoil.
Chief executive Andy Hornby said: "HBOS is set to deliver a good full year outcome despite the dislocation in global financial markets."
He added that tough conditions would continue in the short term and the bank would remain "prudent" in its approach to lending.
HBOS added it had recovered its share of the new mortgage market during the second half of 2007, after it lost out by offering uncompetitive rates for existing customers coming to the end of fixed deals earlier this year.
The bank, which was quick to offer cheaper deals following the Bank of England's move to cut interest rates last week, said it had captured between 17% and 18% of the market in the second half.
HBOS said it had enjoyed strong growth in customer deposits, although higher funding costs since the crunch began will trim the bank's margins slightly this year.
