London - Pre-tax profits at HBOS, Britain's biggest mortgage leaders, dropped by 58 per cent in the first six months of the year, as a result of the credit crisis and a tougher economic climate.

Halifax Bank of Scotland said profits dropped to 1.08 billion pounds (2.16 billion dollars) compared with 2.57 billion pounds in the same period a year earlier.

HBOS, which has met a disappointing response from shareholders to a rights issue to improve its balance sheet, said its bad debt rose by 36 per cent to 1.31 billion pounds up to the end of June. (dpa)