Goals met despite losses at B&B
BRADFORD & Bingley today reported losses of almost £200m but said the figure was substantially better than expected as the nationalised mortgage lender said it was “fit for purpose”.
Announcing its annual results for the year to December 31 2009, managing director Richard Banks said: “We have made substantial progress against our business objectives in 2009 and met all of the financial goals in our agreed business plan.
“The loss before tax of £196m for the year was £71m better than our original plan.
“We have completed our restructure to create an organisation that is fit for purpose to deliver a high quality service to our customers whilst reducing costs, minimising losses and delivering value to the taxpayer.”
The bank was nationalised in September 2008 to stop it collapsing, with the branches and savings arm swiftly sold to the Spanish bank Santander.
B&B’s loss compares to a £278m loss in 2008.
Its tier one capital ratio ended the year at 8.7%, compared to 8.9% the previous year, and no additional capital has been provided since nationalisation.
Its cost base reduced by £116.1m to £137.1m, a fall of 46%.
Outlining its major strategic priorities, Bradford & Bingley has taken a number of actions to facilitate mortgage redemptions, which contributed to a reduction in lending balances of £2.8bn to £39bn.
The bank said it was continuing to work closely with customers experiencing payment difficulties and arrears, whilst working to improve the performance of its collections and fraud management processes.
B&Bm which cut staff number from 995 to 943 in 2009, said no directors received a cash bonus last year, while chairman, Richard Pym, waived his contractual entitlement to a guaranteed bonus of £187,500.
Mr Banks, who joined Bradford & Bingley during 2009, voluntarily deferred his entitlement to a bonus payment of £10,000 for 2009, payable in 2010.
