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Alliance & Leicester reports profits of just £2m
1 August, 2008
A&L today announced that half year pre tax profits have fallen from £290m last year to £2m this time round.
A&L which is due to be taken over by Santander in the autumn revealed figures today that were in line with market expectations. The release of the figures completes a miserable week for the banking sector which has seen one after another report sharply lower profits.
Within the A&L release are some numbers that reflect the market as a whole. New mortgage lending in the period fell from £6.2b last year to £2.4b this year, leaving total outstanding mortgages £2.1b lower at £40.6b.
One of the interesting figures was that of all new mortgage lending only 3% was at an LTV of 90% or greater. This caution is going to make it difficult for first time buyers, which may drive the market down further than the credit crunch has already done.