Bradford & Bingley seeks to reassure investors

22-04-2008

Bradford & Bingley seeks to reassure investors
Bradford & Bingley has told investors it is funded into 2009 despite ongoing uncertainties in the wholesale markets.

The mortgage lender stated in an interim statement that prudent management and a diverse funding portfolio would ensure wholesale liability maturities were matched for the next year.

The news comes despite what the company describes as "on-going difficulties in the wholesale markets".

"The first quarter of 2008 has seen excellent growth in our retail deposit base," said B&B group chief executive, Steven Crawshaw.

"Bradford & Bingley has a strong capital base and has funded its business activities through 2008 and into 2009. We have a focused strategy, and a business model that is adaptable to changing market conditions."

B&B explained the £2 billion committed funding facility announced with the company's preliminary results is currently undrawn.

While acknowledging mortgage conditions remain "uneconomic" for lenders, the company expects its franchise to attract retail balances, and to able to access secured wholesale money using its quality mortgage collateral.

The company also reported an increase of £1.9 billion in savings deposits to date, following an increased focus on savings throughout its branch network.

"Our savings business continues to perform very well, with a strong start to the second quarter," explained B&B in the statement.

"Demand for buy-to-let mortgages remains high with continuing tenant demand and rising rents."

However, the lender acknowledged the supply of mortgages to meet this demand is constrained by the lack of funding generally and the withdrawal of several competitors from the mortgage market.

"We have a focused strategy, and a business model that helps us to respond quickly to changing conditions," concluded the B&B statement.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure