The Halifax and Bank of Scotland Group, HBOS, has joined other UK high street banks in celebrations over a successful 2006, after posting a 14% rise in profits for the year, soaring to GBP5.54 billion from GBP4.84 billion.
Despite recording a triumphant profit, the banking group remains cautious about consumer borrowing, amid rising interest rates and higher utility bills and increased personal debt levels, reports This Is Money.
2006 saw the bank increase the amount of bad debts being written off, rising from GBP1.6 billion in 2005 to GBP1.74 billion, coming primarily from its retail division, where impairment charges rose by GBP100 million to GBP1.1 billion. Its mortgage segment saw improvement, but the bank continued to experience poor unsecured debts.
However, according to HBOS chief executive Andy Hornby, cited in This Is Money, the bank’s overall bad debts had come in lower than expected.