The sad fact about Bradford & Bingley is that no one cares much whether its survives as an independent entity. Its main use, in investment terms, is as a producer of data which can be applied to other larger institutions.
Along with interim figures on Friday, it is no doubt comforting to some to learn that “the Board now receives flash reports on the previous month’s trading within 10 working days” and that despite the “widespread dislocation” chairman Rod Kent and his team “have successfully funded the bank.”
Newbie chief executive Richard Pym will set out his plans for the bank “in the autumn.”
But for now what really matters is this:
- the portion of genuine B&B mortgage customers three months in arrears rose from 1.2 per cent at end December to 1.78 per cent at the end of June;
- but amongst the toxic loans acquired from GMAC the rate moved from 3 per cent to 5.11 per cent, leaving overall arrears at 2.29 per cent, against 1.48 per cent at the year-end.
Along the way, James Hutson of Keefe, Bruyette & Woods noted in a “results flash” to clients that of £74.6m in impairment charges fraud accounted for £18m compared with £10m for house price deflation.
With margins now down to just under 1 per cent (and likely to fall further), this analyst is not a buyer.
Neither is Alex Potter at Collins Stewart, who has helped those looking for a read-across to HBOS with this little table:
Meanwhile, in the market, the stock was holding at 50p ahead of a 9.30 conference call.
Related links
B&B slumps to a loss as arrears surge – FT.com