HBOS reports slight rise in operating lease income

Under fire UK bank HBOS’ H1 results show a slight increase in its
operating lease rental income to £659m from £646m in the same
period in 2007, while operating lease depreciation stood at £505m,
up from £493m.
Underlying corporate pre-tax profit to £753m from £1,243m last
year, and total write downs of £1.1bn pounds.
Net operating income decreased by 15 per cent to £1.6bn from 2007’s
H1 figure of £1.9bn, reflecting lower revenues from its investment
portfolio partially offset by a higher net income. Impairment
losses on loans and advances increased to £469m compared to £235m
last year.
“The first half of 2008 has seen the dislocation in the financial
markets evolve into a wider economic slowdown,” noted Andy Hornby,
chief executive. “Recognising the importance of strong capital to
the HBOS core customer proposition, we have now completed our £4bn
Rights Issue, rebasing the group to stronger capital ratios.”