Halifax Bank of Scotland said today it was on track for a "good" full-year performance despite a £180 million credit crunch blow.
The bank said underlying earnings would meet market expectations despite the write-down on sub prime-backed bonds and other investments hit by the turmoil.
Chief executive Andy Hornby said: "HBOS is set to deliver a good full year outcome despite the dislocation in global financial markets."
But he added that tough conditions would continue in the short term and that the bank would remain "prudent" in its approach to lending.