Britain's HBOS predicts meeting expectations

British mortgage lender HBOS said today it was on course to meet full-year expectations based on a solid first half.

British mortgage lender HBOS said today it was on course to meet full-year expectations based on a solid first half.

In a trading update, the bank, formed from the merger of Halifax and Bank of Scotland, said its first-half results would be in line with an upbeat statement at its annual general meeting last month.

It said a "resilient" housing market meant it would beat its targets for mortgage lending while its over-the-counter operation was on course to hit targets for new current accounts and credit cards.

HBOS reported in February that profits from business banking were flat in 2002, but the group said today revenue growth was improving as the expansion took hold.

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HBOS said its corporate banking operation, dealing with larger customers, was achieving "good growth" with lending margins ahead of those achieved at the same point last year.

The successful establishment of Esure, a telephone and online insurance venture, also helped drive growth in sales of insurance products.