HBOS, the fourth-biggest British bank, predicted on June 12 that 2007 earnings would rise by 10 percent thanks to strong corporate lending growth and strong sales of insurance and investment policies.
In a trading statement, HBOS said it expected to meet analysts' forecasts for earnings per share of 110.8 pence, up from 100.5 pence in 2006.
"Based on trading to date, HBOS is expected to deliver a robust financial performance in 2007 that meets the market's recently upgraded consensus for full year underlying earnings per share of 110.8 pence, some 10 percent ahead of 2006," the bank said.
HBOS, which is the biggest provider of home loans in Britain, added it was enjoying "double digit profit growth" in all of its divisions apart from retail banking.
The group's other units are corporate banking, insurance and investment and its international arm, which has operations in Australia, Europe, Ireland and North America.
In line with the British banking sector, the retail wing has suffered in recent years from rising bad debts, or consumer loans that have been written off. HBOS estimated that bad debt charges to cover arrears on unsecured credit card loans were "close to their peak." HBOS was formed by the merger of home-loan specialist Halifax and Bank of Scotland in 2001.
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