HBOS upbeat despite bad debts as profits rise

British banking group HBOS today said it expected just a “moderate” worsening in bad debts as it revealed half-year profits rose 15% to £2.26bn (€3.27bn).

The group – formed from the merger of Halifax and Bank of Scotland in 2001 - said the number of loans customers had fallen behind on had increased to 2.22% from 2.03% at the end of last year.