results
The asset finance arms of UK banks reported comparatively
healthy profits in their financial results report to June 30,
although unsurprisingly writedowns are on the rise.
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Despite undergoing a restructuring, the asset finance arm
of HBOS in its H1 results showed a £13m year on year increase in
its operating lease rental income to £659m. Its operating lease
depreciation stood at £505m, up from £493m.
However, underlying pre-tax profit at HBOS’ corporate division
almost halved from £1.2bn last year to £753m at the end of the
latest quarter.Total write downs for the division – one quarter of
which is asset finance business – totalled £1.095bn pounds.
Lloyds TSB Asset Finance gained an increase in profit
before tax of 52 per cent to £35m for half year 2008, up from £23m
in the first half of 2007.
While operating expenses were 4 per cent higher (£227m) for H1
2008,Lloyds Asset Finance still had a total income increase of 6
per cent (£21m) to £374m. This is predominantly due to good income
growth, improved efficiency, lower staff numbers and tightened
credit control.
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By GlobalDataAlliance & Leicester Commercial Banking recorded a core
operating profit increase of £11m to £89m for the first half of
2008.The division’s total revenues reached £265m, which comprised
46 per cent of the group’s revenue total.Commercial lending
balances were also up £600m to £9bn.While its operating expenses
were £136m,43 per cent of the groups,it recorded the lowest
impairment charges of all the bank’s divisions of £8m.
Paul Collett
