Barclays grows UK mortgage lending

Sarah Davidson

October 31, 2012

During Q3 2012 total loans and advances remained stable at £502bn (30 June 2012: £504bn) with increases in UK mortgage lending being offset by reductions in lending in Europe RBB and Corporate Bank.

The Group’s loan to deposit ratio was stable at 111% with both loans and advances to customers and customer deposits flat at £452.9bn and £407.3bn respectively.

Plans have been announced to acquire from ING Direct UK a deposit book with balances of £10.9bn and a mortgage book with outstanding balances of £5.6bn (as at 31 August 2012).

The mortgage book had a loan to value ratio of 50% and is being acquired at an approximate 3% discount.

The deposit book is being acquired at par. Completion is subject to regulatory approval and is expected to occur early in Q2 13.

In Q3 2012 Barclays has set aside a further £700m provision for PPI redress including claims management costs on top of the £1bn it put aside last year bringing its total provision to date to £2bn.

The Group continues to access both secured and unsecured term funding markets and has met its term funding needs for 2012 having raised £22bn of term funding in the first nine months of 2012, including £1bn through Barclays’ participation in the Bank of England’s Funding for Lending Scheme.

Antony Jenkins, chief executive of Barclays, said: “These results demonstrate that we continue to have good momentum in our businesses despite the difficulties we faced through this period. While we have much to do to restore trust among stakeholders, our universal banking franchise remains strong and well positioned.

“I am proud of how our colleagues have continued to focus on delivering for our customers and clients, and am grateful for our customers’ and clients’ continued loyalty to Barclays.”

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