UK bank HBOS says it remains on track to meet earnings forecasts and cost predictions in 2006.
So far this year revenues continued to be buoyed by strong sales of insurance products and credit card and checking-account fees. However the bank lost share in the mortgage market as it continued its policy of focusing on existing customers and profits. Despite this the bank’s share of net mortgage lending hovered at 2005 levels of around 17%.
HBOS said it intends to continue with its oversea expansion plans to offset losses in the domestic lending market. It was also looking at increasing insurance and credit card sales, which have already proven themselves lucrative areas for the bank.
Overall HBOS is expected to report a pretax profit of about GBP5.2 billion this year, Reuters stated.