Shares in Alliance & Leicester fell as much as 12% on Tuesday after the UK bank revealed a sharp fall in unsecured personal lending and a slowdown in its mortgage loans, indicating the impact of the credit crisis had risen to nearly £400m in the first four months of the year. A&L said writedowns on Treasury assets and credit assets totalled £192m at the end of April, compared to £185m for the whole of last year. The bank will also make a post-tax reduction of £199m through its reserves. Funding costs, meanwhile, had risen in the period to £49m as the costs of borrowing in the wholesale markets remained high.

This entry was posted by Gwen Robinson on Wednesday, May 14th, 2008 at 5:40 and is filed under Capital markets. Tagged with alliance & leicester. Edit this entry.