Bradford & Bingley Group Interim Results - six months to 30 June 2000

HIGHLIGHTS

Financial

• Profit before tax and exceptional items * up 76% to £140m
• Total income up 29%. Non interest income now at 38% of total
• Total assets up by 10% to £25 billion

Distribution

• Total Distribution income increased by 7% to £111.5m (excluding John Charcol)
• Profit before tax up 20% to £21.8m (excluding John Charcol)
• Acquired John Charcol, the leading UK mortgage broker
• Established Bradford & Bingley Online through the development of Charcolonline and Freeserve partnership

Lending & Savings

• Profit before tax up 84% to £120.8m
• Administrative expenses down 1% to £65.9m
• Net interest margin (last 12 months) 1.85% against 1.38%, reflecting pricing movements and changing lending mix
• Joint venture for outsourced mortgage processing established with U.S. market-leader Alltel

Conversion

• Listing on London Stock Exchange on target for 4 December 2000

*Excluding exceptional costs relating to conversion of £30.2m and John Charcol restructuring costs of £1m. Also excludes pension review provision of £10.1m

Lindsay Mackinlay, Chairman of Bradford & Bingley, said: "These are excellent results which demonstrate our financial strength, strong market position and a clear and different strategy that is working."

Christopher Rodrigues, Group Chief Executive said: " Bradford & Bingley has set out to transform itself from a traditional Northern building society into a national distributor of financial services with strong retail brands. These results show that we are well on our way to achieving this objective.

"We are an innovative and trusted distributor of financial services with a unique customer proposition that works both online an offline. We are a flexible and profitable manufacturer of lending and savings products. Our partnerships with industry leaders will provide platforms for future growth."

"We look forward to the future with confidence. Our distribution revenues will continue to increase, although in the short term profitability will reflect increased revenue expenditure as we grow the business. We anticipate that Lending & Savings will continue to perform strongly."

For further information please contact:
John Coles/Emma Kent
Bell Pottinger Financial
Tel: 020 7353 9203

View the full press release [PDF size 166Kb].