 HBOS is now the UK's largest mortgage lender |
Bad debts have risen at HBOS, the UK's fourth largest bank, hot on the heels of similar warnings from rivals Barclays and HSBC. In a trading statement, HBOS said that bad debts had risen but were in line with expectations.
In March, the UK's biggest mortgage lender reported a 22% rise in annual pre-tax profits to �4.5bn ($8.83bn).
HBOS was created in 2001 from the merger between the Halifax and the Bank of Scotland.
Greater caution
"Trading and financial performance to date continues very much in line with the trends as reported at our agm on 27 April," the bank said in a trading update.
Revenues are "usefully ahead of last year", the bank said, and it expects to deliver profit growth in line with forecasts.
When it reported its annual results in March, HBOS said retail bad debts had risen in the second half of last year, prompting it to adopt a more cautious approach to lending.
Last month Barclays warned of worsening credit quality in unsecured lending.
Meanwhile, HBOS said it was on target to buy back �750m ($1.4 billion) of its own shares this year.
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