Tuesday, Apr 29, 2008
HBOS follows RBS with rights issue
FT: HBOS launches £4bn rights issue
Britain’s biggest mortgage lender, launched its £4bn rights issue on Tuesday as it announced write-downs totalling £2.84bn against impaired securities in its first quarter, and plans to bolster its capital base.
Posted by jack c @ 09:27 AM (506 views) Add Comment
5 Comments
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1. jack c said...
Apologies in advance, I have posted up an article on this topic via Citywire but forgot to include my password - so it will appear as a duplicate article later.
2. little professor said...
Peston's take:
HBOS's massive u-turn
What now seems astonishing - and reckless - was that on August 1 2007, just days before what most of us see as the official start of the credit crunch, HBOS actually announced an increase its dividend-payout ratio from 41% of earnings to 46%.
Less than nine months ago, HBOS swaggered: "It is clear that HBOS has a strong capital generation capacity, as a natural consequence of returns on equity running above 20%, increased capital generation from our Investment businesses, and the benefits to be derived from the move to Basel ll [the new international regime for measuring the robustness of banks' balance sheets]".
That statement looks absurd today, as it nails to the floor every last penny it can find.
So the one thing that is perhaps lacking from today's rights-issue statement from the bank is a statement from management, led by the chief executive, Andy Hornby, about how they got it so wrong last year.
3. mark said...
Didnt this bank deny rumours only last month?
4. taffee said...
it not only denied it , it promised an investigation into 'share run' and got its senior managers to buy 1.6 mill shares.
That was whilst getting finance of 750 mill @9.5%(true)
Just shows they have lost control of their business imho
5. plato said...
New Shares?.............No Thanks !........I've already given you enough via the BoE........... I'd like to see what I'm getting for my money first.
BTW ----------------------- Don't think dividends will be too generous for a couple of years,if at all.
Think first and Invest Wisely people.