Mortgage Change Hits HBOS Retail Profits

When HBOS made a change to their mortgage pricing it had disastrous effects on HBOS and this is the main reason behind why its retail profits for the first half of the year were down.

Pre-tax profits fell 8% in the retail division to £1.04 billion, but the their was profit growth in other sectors of HBOS so overall pre-tax profits actually rose 13% to £2.962bn in the half year to June.

This means that HBOS earnings per share rises to 54.6p, a 16% rise.

HBOS is the UK’s biggest mortgage lender but there has been concerns in the mortgage industry recently especially with the NYSE halting trading on American Home Mortgage and eventually American Home Mortgage claimed insolvency.

What do you think about the mortgage market at the moment?

What’s your opinion of the first half HBOS profits?

Source

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