View more on these topics

Alliance & Leicester reports 30 per cent profit drop ahead of “challenging” year

Alliance & Leicester has reported a 30 per cent drop in pre-tax profits, from £569m to £399m, and warned of a challenging year ahead for the lender.

Share in the lender fell 12 per cent, from 528p to 461p, by 9.30 this morning.

Profits were hit by a write down on sub-prime business. Excluding the write-down operating profits rose by 3 per cent, from £585m to £602m, for the year ended December 31, 2007.

A&L achieved £4.8bn of net mortgage lending in 2007, representing 4.4 per cent of the market.

The results show the lender’s combined secured and unsecured loan product, PlusMortgage, which was pulled this week, had net advances in the year of £625m, with a further £55m of unsecured loans.

A&L finance director Chris Rose says: “The trading outlook for financial services will be challenging in 2008, 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 is 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 help us increase cross-selling, strengthen customer relationships and improve efficiency still further


Flight attacks Government over entrepreneurs

Former Conservative Shadow Treasury chief secretary Howard Flight has criticised the Government for pushing entrepreneurs out of the country.Speaking at the Enterprise Investment Scheme Association awards last week at the House of Commons, Flight said overspending and increased taxation have resulted in lower productivity growth for the British economy. He said it is entrepreneurs who […]

Malcolm Small joins B&CE Insurance board

B&CE Insurance has appointed pensions consultant Malcolm Small to its board.Small has specialised in all aspects of management in financial services at senior level for the last 15 years. He spent 14 years with Norwich Union and five years at Merchant Investors. More recently, as managing director of Lyncombe Consultancy, he has specialised in the […]

Governor dampens hopes of rate cuts

Bank of England governor Mervyn King has warned that inflation could reach 3 per cent in the coming months, missing the monetary policy committee’s target.He says big interest rate cuts, as recently seen in the US, are unlikely in the UK and that rising food and fuel prices will put household finances under serious pressure.Delivering […]


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