B&B on course to meet forecast

From the archive, first published Friday 8th Dec 2006.

The Bradford & Bingley has eased any jitters over bad debt levels and the impact of higher borrowing costs on the property market.

The issues of arrears and 2007 trading have been the focus of updates from the bank sector in recent days, but B&B indicated it was fine on both counts.

The bank added it was on course to meet City forecasts for pre-tax profits of between £323.5 million and £339.2 million in 2006 - a seven per cent rise on last year.

The Bradford & Bingley's success in the specialist lending market has led to the bank maintaining its growth in the second half of this year.

In yesterday's trading update, the B&B said the momentum seen in the first half of 2006 had continued.

Head of investor relations Katherine Conway said the volume growth on the business lending was particularly pleasing, with its pipeline of new business at record levels.

She said: "Our specialist lending business is going very well and that will continue to be our main focus."

The bank specialises in buy-to-let' mortgages, offering deals to people who want to invest in rental properties.

The B&B has also enjoyed success with its self-cert' mortgages - for people who are self-employed or have two jobs. The bank has recently agreed with GMAC a forward sale agreement to acquire portfolios of mortgages over the next three years, securing the business relationship

Arrears levels have also reduced since the half year - both in absolute numbers and as a percentage of loans.