HBOS upbeat on market gains

BANKING group HBOS is set to meet or beat its 2002 market share targets as it said that first-half trading had been in line with City forecasts.

Star of the show was Intelligent Finance, the online bank, which claimed a better-than-expected portion of UK mortgages, the group said. HBOS has been aiming for 25% of the new mortgage market, 20% of new current accounts and to provide a fifth of all Britain's new credit cards.

However, HBOS added that its investment products, sold through units like its Clerical Medical brand, could encounter 'difficult trading conditions' in the short-term due to an ongoing stock market slump that has deterred many investors.

In a pre-close briefing ahead of interim figures, HBOS also said credit quality was in line with expectations and provisions volume driven. Costs were set to grow 6% year on year in 2002.

HBOS was formed through the merger of Halifax and Bank of Scotland.