HBOS news
HBOS is the holding company of the HBOS Group. It operates through five divisions: Retail, Corporate, Insurance & Investment, International and Treasury & Asset Management. The Company’s Retail range of products includes personal and business banking products and services to 23 million customers.
Website: HBOS
Latest HBOS News:
HBOS outlines £4bn rights issue
by Gill Montia
Story link: HBOS outlines £4bn rights issue
HBOS has unveiled its plans for a £4 billion rights issue.
The group, which owns Bank of Scotland and Halifax, wrote down £2.8 billion in connection with the credit crisis in the first quarter of 2008 (compared with £736 million for the whole of 2007) as a result of a fall in the value of its [...]
HBOS set to raise £4bn in rights issue
by Gill Montia
Story link: HBOS set to raise £4bn in rights issue
HBOS is reported to be planning a £4 billion rights issue, the details of which are likely to be announced to its 2.1 million shareholders this week.
The group’s Halifax business is the UK’s largest mortgage lender and the bank is known to have concerns about the downturn in the housing market.
This week, housing intelligence firm [...]
BoSC negotiates stake in Kenmore
by Gill Montia
Story link: BoSC negotiates stake in Kenmore
Bank of Scotland Corporate (BoSC) is reported to be negotiating the acquisition of around 40% of Kenmore, the Scottish property company.
Kenmore is an Edinburgh-based developer and property fund manager that operates in the residential and commercial sectors.
BoSC has recently increased its interest in property development; it owns stakes in Cala and Tulloch and earlier this month [...]
Bradford & Bingley rumours wipe £2.5bn off UK bank shares
by Gill Montia
Story link: Bradford & Bingley rumours wipe £2.5bn off UK bank shares
Bradford & Bingley (B&B), the buy-to-let lender, has denied rumours that it is in financial difficulties.
Over the weekend, reports in the press suggested that the lender would be forced into an emergency rights issue to shore up its capital base.
According to B&B’s finance director, the bank raised £2.5 billion in the wholesale market last autumn [...]
BoS acquires stake in Miller Group
by Gill Montia
Story link: BoS acquires stake in Miller Group
Bank of Scotland (BoS) has acquired a stake in Miller Group, the privately owned construction firm that is one of Scotland’s biggest companies.
Full details of the transaction have not been disclosed but according to BoS’ usual practice, the stake would range from between 15% and 30%.
Miller Group is expected to report its first fall in [...]
HBOS shares soar by 15%
by Richard Kilner
Story link: HBOS shares soar by 15%
After taking a battering in recent days, HBOS enjoyed a surge in its share value which soared by 15% over the course of a single day.
The multi-billion pound additional value is due to the £6m of shares purchased by senior executives at the bank, led by Andy Hornby, to reinvigorate confidence in the firm.
The move [...]
Banks face losses as commercial property stocks fall
by Gill Montia
Story link: Banks face losses as commercial property stocks fall
Capital Economics is warning that UK banks could face large losses as a result a sharp fall in the value of the UK’s commercial property.
The economic forecasting consultancy is warning that £7 billion could be wiped off commercial property stocks in the next two years and that the figure could rise to £18 billion should [...]
FSA warns on market rumours as HBOS shares plunge
by Gill Montia
Story link: FSA warns on market rumours as HBOS shares plunge
Rumours that HBOS has liquidity problems has led to an investigation by the Financial Services Authority (FSA), which will be looking at the possibility of market abuse, after the bank’s shares fell heavily today.
It is possible that the speculation, which included suggestions that the Bank of England is arranging an emergency meeting with HBOS, emanated [...]
HBOS raises £750m in new capital
by Gill Montia
Story link: HBOS raises £750m in new capital
HBOS has made it clear that it thinks the credit squeeze if far from over by raising £750 million in new capital.
The bank acted quickly last week, when the US Federal Reserve and other central banks announced plans to inject further cash into the money markets, to stem the deterioration in the availability of credit.
Andy [...]
HBOS puts profitability above market share
by Gill Montia
Story link: HBOS puts profitability above market share
HBOS has posted a 3% rise in underlying pre-tax profits, to £5.71 billion, for 2007.
However, the result is below market expectations of £5.76 billion and was accompanied by a warning of continued uncertainty in the financial markets.
New mortgage business increased 22% in the second-half of last year but the bank says it will be putting [...]
HBOS supports financial management project
by Gill Montia
Story link: HBOS supports financial management project
HBOS’s charitable foundation is funding a £300,000 three-year project to help young people manage their finances and avoid getting into serious debt.
The Citizens’ Advice Bureau (CAB) and YouthNet will use the grant to target young people aged 16 to 25 via web content, podcasts and mobile phones.
The charities hope to reach a million young people [...]
HBOS on course for £5.8 billion profit
by Gill Montia
Story link: HBOS on course for £5.8 billion profit
In a trading update, HBOS, the UK’s fourth largest bank, has reported that it is writing down just £180 million in connection with the credit squeeze.
The bank’s chief executive, Andy Hornby, confirmed that profits and costs for 2007 will be in line with market expectations and that the bank’s full-year profit forecast of around £5.8 [...]
SMEs lose banking price controls
by Gill Montia
Story link: SMEs lose banking price controls
The Competition Commission (CC) has lifted the temporary price controls that it applied to the UK’s four largest banks, in 2003.
The controls determined the way in which Barclays, HSBC, Lloyds TSB and the Royal Bank of Scotland group run business accounts for small and medium-sized enterprises (SMEs).
The price controls were put in place following an [...]
Banks face heavy loans to affiliate companies
by Gill Montia
Story link: Banks face heavy loans to affiliate companies
The difficulties in the US sub-prime mortgage market has left UK High Street banks with the prospect of having to use substantial funds to support affiliate companies involved in high risk investment.
The crisis has caused a shortage of money in the debt markets and a sharp increase in interest rates.
As a result, HBOS has already [...]
HBOS reluctant to help Sams borrowers
by Gill Montia
Story link: HBOS reluctant to help Sams borrowers
HBOS, the group that comprises Halifax and Bank of Scotland, is still resisting any kind of action to compensate elderly borrowers who took our shared appreciation mortgages (Sams) during 1997 and 1998.
Sams were sold as interest free loans that were repaid using any future increase in the value of the borrowers’ homes. The typical proportion [...]
HBOS recovers from mortgage blunder
by Gill Montia
Story link: HBOS recovers from mortgage blunder
HBOS, which own Halifax, has apologised to shareholders for introducing a new mortgage pricing policy that adversely affected it main mortgage market in the first-half of 2007.
The bank was attempting to increase its mortgage margins but in fact succeeded in reducing its share of the mortgage market from 17% to just 8%, in a matter [...]
Repaid charges could cost HBOS £50m
by Gill Montia
Story link: Repaid charges could cost HBOS £50m
Credit Suisse has published a study in which it estimates that UK banks paid out £200m in the first-half of 2007, to customers reclaiming unfair bank charges.
Account holders have been successful in reclaiming thousands of pounds in penalty charges that have been deemed unfair under consumer contract law because they do not reflect the costs [...]
Barclays Offers SAMS Rescue Package
by Gill Montia
Story link: Barclays Offers SAMS Rescue Package
Barclays has launched new measures offering assistance to customers who took out Shared Appreciation Mortgages (SAMs) during 1998, and are now suffering hardship.
The controversial Shared Appreciation Mortgage, which is interest free, allowed homeowners to borrow approximately 25% of the value of their property. However, under the terms of the agreement, they had to pay [...]
