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Bradford & Bingley reports £200m loss and sees rise in arrears
Bradford & Bingley plunged to a loss of nearly £200m last year, accounts revealed today.
The nationalised mortgage lender said the pre-tax loss of 196m was 71m lower than originally forecast and 82m lower than the comparable loss in 2008.
It also revealed that 12,000 customers are being helped after they fell behind their mortgage arrangements.
B&B said the total number of morgages three months or more in arrears or in possession equated to 5.54 per cent of mortgage accounts, up from 4.6 per cent last year.
But the bank added: "During the second half of the year arrears levels - particularly early arrears - fell as a result of lower interest rates and improved credit collection processes and this downward trend has continued in the early part of 2010.
"Overall, the performance in the arrears book is better than anticipated in the group's business plan.
B&B said its tier one capital ratio - a key measure of a bank's strength - ended the period at 8.7 per cent. Its cost base fell 46 per cent to 137.1m, the bank added.
B&B said its strategic priorities are to run down its balance sheet, minimise impairment and losses, restructure and realign the business, and provide transitional services to Abbey, which bought the bank's retail business.
Richard Banks, managing director, said: "We have completed our restructure to create an organisation that is fit for purpose to deliver a high quality service to our customers whilst reducing costs, minimising losses and delivering value to the taxpayer."
B&B said no directors received a cash bonus in respect of 2009 "that would have been payable in 2010".
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Wednesday 23 May 2012
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