View more on these topics

A&L pledges to focus on

Alliance & Leicester has denied that it is turning its back on the mortgage market after a 30 per cent drop in profits.

A spokesman insists that the mortgage market is still very important for the bank but it anticipates a lower lending volume this year. He says reports in the media that A&L has closed the door on the UK mortgage market are “over the top”.

The spokesman says A&L will focus on retaining its 100,000 mortgage customers, who will be coming off rates this year.

The firm recorded £4.8bn of net mortgage lending last year, a 4.4 per cent market share. Profits for last year fell to £399m from £569m, hit by a £185m writedown of treasury assets. Excluding the writedown, A&L says operating profits rose by 3 per cent to £602m from £585m.

It has a liquidity facility to secure funding through to 2009 but, as a result, will face an extra cost of £150m.

PlusMortgage, which is A&L’s combined secured and unsecured loan product, was withdrawn last week. It had net advances of £625m, with a further £55m of unsecured loans.

Finance director and acting chief executive Chris Rhodes says: “The trading outlook will be challenging and we will maintain the prudent approach to lending which has led to our customer lending asset quality being better than industry averages. Our business is diversified and not dependent on the performance of a single market, with just 27 per cent of group revenues coming from mortgages and savings.

“We are investing in new banking technology to helpus increase cross-selling, str-engthen customer relation-ships and improve efficiency still further.”


Delicate balance

You do not need a crystal ball to predict that UK interest rates are going down. After monetary policy committee decisions to cut rates in December and February, the debate for many is now simply about how much more and how quickly rates are going to be cut.Many commentators were disappointed that the MPC did […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm