Tuesday 3rd June 2008
Bradford & Bingley shareholders could have little reason to celebrate following the publication of new trading figures by the financial services provider.
The organisation has reported "disappointing" performance for the first four months of 2008, resulting in corresponding disappointment among shareholders, according to a spokesperson.
Executive chair Rod Kent says: "The last few weeks have been challenging for Bradford & Bingley and this is a disappointing trading update reflecting a more difficult market environment."
Bradford & Bingley notes a decline in underlying profits year-on-year of almost 50 per cent as it slipped to £56 million from £108 million for the same period of 2007.
The trading statement adds that the companys board "is cautious in its outlook for the year" as it expects the challenging market conditions to persist for the remaining eight months of its reporting period.
In all, Bradford & Bingley asserts that it made a loss before tax of £8 million over the four-month period, compared with profits of £107 million in 2007.
This reflects charges of £64 million, including an £89 million cost incurred by the organisations structured finance portfolio, offset by improvements in its endowment mis-selling liabilities and capital gains or other expenditures.
However, the financial services provider stresses that the underlying factors in its lending and savings businesses "remain sound".
Following the news, investor advisory service The Share Centre commented that Bradford & Bingley does not represent "another Northern Rock situation".
But the adviser conceded that the financial services provider has been one of those to be "worst hit" by the events of the credit crunch.
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