HBOS shares slide UK bank HBOS has reported a ten per cent fall in share prices,

PRLog (Press Release) – Mar 04, 2008 – UK bank HBOS has reported a ten per cent fall in share prices, after the credit crisis hit its retail division.

HBOS shares were down 68 pence at 637p at 1230 GMT, prompting the bank to announce a more "cautious" approach to lending in 2008.

The increase in the cost of borrowing funds for mortgages on the wholesale market also contributed to a 13 per cent fall in the profits of HBOS' retail business.

The bank, formed by the merger of Halifax and the Royal Bank of Scotland, suffered a marked slowdown in the second half of last year, as net profits slumped by 8.9 per cent, owing to the credit crunch and a weakening housing market.

However, HBOS predicts that householders will save more in 2008 and expects "strong growth" in savers' deposits despite stiff competition from other banks and building societies.

The bank's chief executive Andy Hornby said: "We are well placed to take opportunities presented by these difficult markets and deliver good growth in shareholder value over the next few years."

Further analysis of HBOS could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.