HBOS wants higher capital ratio for 4-5 years

LONDON (Reuters) - HBOS HBOS.L said on Tuesday it wanted a higher capital ratio for the next four to five years, given the uncertain economic outlook, after it launched a 4-billion-pound rights issue.

Chief Executive Andy Hornby told Reuters that Britain's biggest mortgage lender was aiming for a core Tier 1 capital ratio at the upper end of its 6-7 percent target range by the end of this year.

"We've taken the firm view that for the next four to five years, given the more uncertain macroeconomic environment, we want to have an even higher target ratio," he said in a telephone interview.

Hornby added that he expected the rights issue to be well supported.

(Reporting by Steve Slater, Editing by Mark Potter)