Bradford & Bingley is axing 500 staff as part of a cost-cutting drive
despite seeing profits rise by 22 per cent in the half-year to June.
Profits rose to £119.7m from £98.1m in the six months to
December but the former building society said it inten-ded to slash jobs in
a bid to save £30m by the end of 2002 through rationalising its
The news comes following the 300 redundancies that B&B made in February
when it closed more than 50 of its branches and estate agencies.
B&B, which floated on the London Stock Exchange last December, said it had
prospered during its first few months as a plc and was pleased with the
growth of Charcol Online and its specialist lender Mortgage Express.
Charcol Online saw mortgage completions treble in the half-year to June to
£207m from £69m over the same period in 2000 while Mortgage
Express' lending balances rose by 36 per cent to £4.1bn from
B&B also said its programme of transforming its branch network into
independent advice centres, called The Marketplace at Bradford & Bingley,
was proving to be a success.
Group chief executive Christopher Rodrigues says: “The business has
prospered in its first six months as a plc. We will continue our investment
programme in the second half of the year while keeping a weather eye on
economic conditions and their impact on prospects for retail financial
services and the housing market.”
Pretty Technical Partnership partner Kim North says: “B&B looks as though
it is prepared to continue to sacrifice staff for increased profits but
this is indicative of how financial services is going at the moment.”