Bradford & Bingley PLC
13 February 2008
Preliminary results for the year ended 31 December 2007
Commenting on the results, Steven Crawshaw, Group Chief Executive, said:
'These results demonstrate the strength of our underlying business, which has
performed well in a challenging year for the sector. With significant funding in
place and our savings business continuing to attract new money, we are confident
of our ability to continue to be a leading player in the specialist lending
market.'
Highlights
• Total dividend per share up 5% to 21.0p (2006: 20.0p)
• Tier 1 capital ratio 8.6%, total capital ratio 15.1% (2006: 7.6%, 13.2%)
• Residential lending balances up 27% to £39.4bn (2006: £31.1bn)
• Savings balances up 7% to £21.0bn (2006: £19.7bn)
• Group net interest margin 1.10% (2006: 1.19%)
• Underlying cost:income ratio improved to 42.8% (2006: 44.2%)*
• Underlying profit before tax up 5% to £351.6m (2006: £335.9m)*
• Statutory profit before tax £126.0m (2006: £246.7m)*
• Total customer deposits funded 60% of customer loans (2006: 61%)
* Items excluded from underlying profit in 2007 include treasury asset
impairment of £94.4m, a loss on sale of commercial and housing association
portfolios of £58.0m, hedge ineffectiveness of £23.5m and other fair value
movements on treasury instruments of £49.7m. These items are explained on pages
7 and 8 and a reconciliation of statutory to underlying profit is provided on
page 9.
This document may contain forward-looking statements with respect to certain
plans and current goals and expectations relating to the future financial
conditions, business performance and results of Bradford & Bingley plc. By
their nature, all forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances that are beyond the
control of Bradford & Bingley plc including, amongst other things, UK domestic
and global economic and business conditions, market related risks such as
fluctuation in interest rates and exchange rates, inflation, deflation, the
impact of competition, changes in customer preferences, risks concerning
borrower credit quality, delays in implementing proposals, the timing, impact
and other uncertainties of future acquisitions or other combinations within
relevant industries, the policies and actions of regulatory authorities, the
impact of tax or other legislation and other regulations in the jurisdictions in
which Bradford & Bingley plc and its affiliates operate. As a result, Bradford
& Bingley plc's actual future financial condition, business performance and
results may differ materially from the plans, goals and expectations expressed
or implied in these forward-looking statements.
Overview
2007 proved to be an eventful and difficult year for the banking sector.
Despite the turmoil in the financial markets in the second half of the year,
Bradford & Bingley's underlying business progressed well. The Group's
conservatism and diversity of funding, combined with our policy to pre-fund our
new business pipeline and our decision to dispose of non-core mortgage
portfolios, meant that we weathered the much publicised liquidity problems in
the financial markets.
The Group continues to successfully fund the business, most recently with an
agreed £2bn of committed term facilities which pre-fund maturing term financing
into 2009, and an additional £1.2bn of retail savings deposits already raised in
2008.
The underlying business performed successfully, despite the distractions of the
wider market. We grew residential lending balances by 27% without increasing our
risk appetite, and increased savings balances by 7%, continuing our strong focus
on retail deposits.
Underlying profit before tax increased by 5% to £351.6m (2006: £335.9m).
Underlying earnings per share were up 6% to 40.2p (2006: 38.1p) and dividend per
share increased 5% to 21.0p (2006: 20.0p). Underlying return on equity
increased to 19.1% (2006: 17.4%).
In order to provide a clear understanding of the ongoing performance of the
Group, we report on underlying profits which exclude certain items resulting
from strategic decisions, extreme market events or accounting volatility. Items
excluded from underlying profit in 2007 include a loss on sale of commercial and
housing association portfolios of £58.0m, treasury asset impairment of £94.4m,
hedge ineffectiveness of £23.5m and other fair value movements on treasury
instruments of £49.7m. Statutory profit before tax was £126.0m (2006: £246.7m).
These items are explained on pages 7 and 8 and a reconciliation of statutory to
underlying profit is provided on page 9.
Net interest income
The Group's net interest income increased by 7% to £547.7m (2006: £510.2m),
largely driven by net addition to our residential lending book of £8.3bn to
£39.4bn (2006: £31.1bn), and more than outweighing the impact of the sale of
£4.0bn of our commercial and housing loans. The growth of our specialist
mortgage lending activities has generated an increase in average interest
earning assets of 16%.
Full year net interest margin declined by 9 basis points to 1.10% (2006: 1.19%)
in line with our expectations and previous guidance. We have increased the
pricing on new mortgages originated in the second half of the year, compensating
for the higher base rate and relevant swap costs and margins have been
preserved. The main reason for the decline in net interest margin continues to
be increased funding costs due to new funds being more expensive than existing
retail deposits and wholesale funds. We expect the trend of a growing balance
sheet and higher marginal funding costs to continue, albeit at a slower rate,
given the more constrained environment. We have adopted a policy of holding a
larger proportion of our liquidity in higher quality, but lower yielding
instruments, which also had a small negative impact on net interest margin in
2007 and this will continue in 2008.
For further information see Note 4.
Non-interest income
Total underlying non-interest income increased slightly during 2007 to £106.6m
(2006: £104.7m).
A reduction in mortgage related income, due to our decision to cease mortgage
broking in our branches from November 2006, was offset by an increase in sale
and leaseback income of £8.8m (2006: £5.7m) and some small gains on financial
instruments.
For further information see Note 5.
Costs
We continue to manage the rate of our cost growth carefully, whilst investing in
key areas to support growth and productivity. Underlying costs increased by 3%
to £280.2m (2006: £271.6m), improving the underlying cost:income ratio to 42.8%
(2006: 44.2%).
We have increased investment in our people during 2007, spending more on
development and training reflected in higher staff costs of £121.0m (2006:
£118.2m). We have also further improved the efficiency of our operations,
increasing new mortgage volumes by 27% whilst reducing the total number of
people employed by the Group to 3,035 (2006: 3,154).
We invested in the Bradford & Bingley brand with a new television campaign
promoting specialist mortgages running throughout the year. Marketing
expenditure was raised to £19.7m (2006: £15.3m). Additional investment in our IT
infrastructure to improve capacity and efficiency led to an increased
depreciation charge of £23.7m (2006: £18.2m).
The provision of £89.4m that was made in June 2006 to cover the cost of claims
for historic endowment and investment product misselling currently stands at
£50.7m. The volume of claims received, the proportion of claims upheld and the
average compensation per upheld case are within the assumptions made in
estimating the provision.
For further information see Note 6.
Credit quality and impairment
During 2007 arrears levels continued to increase steadily following five 25
basis points base rate increases since August 2006. The total number of cases
three months or more in arrears and in possession has increased to 6,170 (2006:
4,337), equating to 1.63% (2006: 1.30%) of the total book. Within this,
properties in possession as a proportion of total loans were 0.15% (2006:
0.10%). This increase is within our expectations and reflects the increases in
the cost of borrowing as the Bank of England constrained monetary policy in 2006
and 2007.
Expressed as a proportion of balances, the residential impairment allowance
represents 0.14% (2006: 0.15%) and the charge to the Income Statement to account
for impairment was £22.5m (2006: £7.4m).
The average loan-to-value across our whole residential lending portfolio
adjusted for house price inflation is 55% (2006: 53%) providing a good level of
equity. Only a small proportion of arrears cases translate into losses and the
security of the property, together with our impairment provision, provide a good
level of security against losses.
For further information see Notes 12, 13 and 14.
Balance sheet
We grew the Group's total assets by 15% to £52.0bn (2006: £45.4bn). This growth
was due to a 27% increase in residential lending balances to £39.4bn (2006:
£31.1bn) driven by record gross residential mortgage advances, up 36% at £14.0bn
(2006: £10.3bn). Of this total, £9.7bn (2006: £7.7bn) was originated through
intermediaries and direct channels, and £4.3bn (2006: £2.5bn) was purchased from
GMAC-RFC and Kensington Mortgages. Our estimated share of net new lending in
the UK mortgage market was 7.7%, more than double our share of outstanding
balances of 3.3%.
For further information see Note 11.
Funding
We are satisfied with the way in which we have, as a Company, dealt with the
extreme liquidity problems which emerged in the wholesale markets in the second
half of 2007. In general terms, we were well placed for such difficulties. We
had been careful to retain our conservative approach to our funding and, in
particular, had continued to invest in our branch network and build up the
amount of our retail deposits. We had also pursued the policy of pre-funding our
net new lending and of holding sufficient liquidity for at least 3 months
without recourse to wholesale money markets.
In response to the unfolding liquidity crunch, we took a number of steps to
reduce our funding needs. We increased our mortgage pricing to contain volumes
and protect margins; raised our savings pricing to attract additional customer
deposits; reduced the level of mortgage portfolio acquisitions and increased our
focus on lower risk lending. For many years we have worked hard at diversifying
our funding base and building strong relationships. This proved very beneficial
when we raised £2.5bn in private funding transactions in September and October
when the public wholesale markets were effectively closed.
The Group is in a strong funding position and has agreed £2bn committed funding
facilities with key relationship banks. These are there to be used as and when
required to take advantage of any particularly attractive growth opportunities.
We have now pre-funded our maturing term financing into 2009, as well as
generating additional new business capacity.
Retail savings deposits continue to provide reliable, stable funds and will
continue to play a major part in financing asset growth. The renewed focus in
2006 on branch savings was very successful in 2007 as we raised an additional
£1.6bn of balances. We launched a number of new initiatives during the year to
broaden our reach in the savings market. These included a new joint initiative
with ASDA, offering an internet based savings account to their 11 million
customers, a new postal account and a market leading range of fixed rate bonds.
The Bradford & Bingley brand continues to drive new savings deposits to the
Group and we are improving our product offering and processes to ensure we stay
at the forefront of the savings market. Total retail savings deposits were
£21.0bn (2006: £19.7bn) and since the start of 2008 we have raised a further
£1.2bn. At the end of 2007, total customer deposits of £24.2bn funded 60% of
customer loans (2006: 61%).
Specialist markets
Our mission is to lead the UK's specialist lending market and we hold strong
positions in our chosen prime secured segments, which continue to grow more
rapidly than the mainstream mortgage market.
Investment in the private residential rental market through buy-to-let mortgages
remains well supported, with tenant demand at its strongest for five years and
steadily rising rents. During 2007 we have seen good growth from existing
buy-to-let landlords increasing their portfolios, which is in line with
investors' stated objective of holding the asset for the long-term. We
regularly survey our buy-to-let customers and our most recent survey of 4,000
landlords, which was conducted in October 2007, indicated they remain very
confident, with 86% planning to increase or maintain their portfolios in the
following 6 months. We believe that strong tenant demand, coupled with
landlords' confidence and long-term perspective will ensure the market continues
to grow faster than the mainstream mortgage market. We grew buy-to-let balances
by £4.9bn (27%) year-on-year, whilst maintaining credit criteria and have held
our market share of balances constant at around 20%.
The self-cert market continues to be driven by the increase in self-employment
levels and more flexible working patterns. We use our underwriting expertise in
this market to lend to prime customers with clean credit histories who have
different employment patterns and therefore require a more specialised product.
Self-cert balances grew by £1.6bn (24%) year-on-year. We tightened credit
criteria during 2007 to ensure we focused on business quality, reducing our
estimated share of new business to 8.5% (2006: 9.1%).
We increased our product pricing during the second half of the year across all
our products to contain volumes and protect margins in a response to the
increasing cost of funds.
Capital and Basel II
The Group continues to operate under the Basel II standardised regime.
Developing an internal ratings based approach for our specialist mortgage assets
is now progressing more slowly as we await any additional regulatory guidance
which might result from the recent market turmoil.
A share buy-back began in July 2007 as part of a plan to re-balance the mix of
our capital by changing the proportions of equity and interest bearing tier 1
capital on our balance sheet. As market conditions deteriorated it became clear
it would be inappropriate to try to raise interest bearing capital at the
extreme pricing levels that developed in the second half. Hence, we suspended
our buy-back programme, having purchased 16.75 million shares at a cost of
£58.6m. Bradford & Bingley remains very well capitalised with a tier 1 ratio of
8.6% (2006: 7.6%) and total capital ratio of 15.1% (2006: 13.2%).
Dividend
The Board has approved a final dividend of 14.3 pence per share (2006: 13.4
pence) for payment on 2 May 2008 to shareholders on the register at the close of
business on 25 March 2008. If approved, the full year dividend for 2007 will be
21.0 pence per share (2006: 20.0 pence), an increase of 5%, reflecting our
underlying profit growth.
Outlook
There is no denying that today's market circumstances present the mortgage
industry with a unique set of challenges and opportunities. We believe the
fundamentals that drive our specialist markets remain strong, and expect the
buy-to-let market to continue to grow at a faster rate than the mainstream
mortgage market. Rental levels are particularly healthy and well supported,
rents are rising and tenant demand is at its strongest level for five years.
Private property investors are committed to maintaining or expanding their
portfolios and are interested in long term returns, rather than short term
gains, providing good quality affordable accommodation to meet the strong tenant
demand.
The withdrawal of other lenders from the specialist markets provides us with
opportunities to protect margins and continue our profitable growth in the
future.
As a well capitalised bank with high levels of liquidity and funding, Bradford &
Bingley is well placed to continue pursuing its strategy.
Items excluded from underlying profits
In order to enable stakeholders to obtain a clear view of the ongoing
performance of the Group, the Board excludes certain items that are the result
of long-term strategic decisions and/or the impacts of unusual and extreme
external events and accounting volatility that can have a distorting effect on
financial performance in single reporting periods. Profit excluding such items
is defined as underlying profit. The items not included in underlying profit are
the loss on sale of commercial and housing association loans, the impairment of
wholesale assets, fair value movements on treasury instruments and hedge
ineffectiveness.
For further information see the tables on page 9.
Loss on sale
During 2007, the Board resolved to sell a portfolio of commercial property and
housing association loans. This decision reflects the Group's strategy of
focusing on areas of the lending market that offer superior returns and growth,
specifically the UK specialist mortgage market, which has proved particularly
timely given the performance of the commercial property sector in recent weeks.
Under two separate transactions announced in early December, a total of £4.0bn
of assets were sold for a net consideration £44.7m below book value. In
addition, £13.3m of transactional and restructuring costs were incurred. The
final details of the consideration for the housing association portfolio remain
under discussion and we have therefore prudently taken account of the minimum
proceeds. The assets disposed of contributed c.£45m profit to the Group in
2007. Following the sales the Group retains £1,022m of commercial property and
housing association loans that remain part of our ongoing business.
Wholesale asset impairment
At the time of our pre-close trading statement, the Group held £125m of
investments in structured investment vehicles (SIVs), and a further £140m in
collateralised debt obligations (CDOs) of asset backed securities which have
some exposure to the US sub-prime market. At that time, one of our CDO
investments of £20m had been further downgraded by rating agents.
Since then, further information has become available and we have undertaken
extensive analysis on all our wholesale assets, including the SIVs and CDOs, in
order to identify any that we believe may be impaired. In order to arrive at
this conclusion we have considered actions from rating agents, the pricing on
the bonds in the market (where available) and reports on the underlying security
of the bonds prepared by their investment managers. There is a very restricted
market for these securities with very few, if any, recent trades taking place,
therefore pricing information cannot be used as the only guide to value.
Consequently, we have also modelled the expected out-turn of the investments
that have been downgraded or suffered a material reduction in pricing in order
to estimate the likely level of recovery. This modelling uses assumptions based
on the performance of the security of the collateral of each investment, the
reports from the investment managers and the general liquidity conditions in the
market. As a result of this analysis, which reflects information available up
to 12 February 2008, we have concluded that £64.2m of our SIVs and £30.2m of
CDOs are impaired and accordingly we have made charges to the income statement
to reflect the holding value of these assets.
Fair value of financial instruments
The volatility of interest rates and asset prices has brought changes to
accounting for financial instruments implemented under the transition to
International Financial Reporting Standards into sharper focus in 2007. Where in
previous periods these movements have been immaterial, in 2007 the Group's
Income Statement contains a number of fair value movements that are more
significant. These fair value movements introduce volatility to reported profits
and are therefore not included in the underlying profit of the Group.
Hedge ineffectiveness represents the amounts of accounting fair value difference
in the future cash flows of hedged items. The majority of these items are fixed
rate mortgage and savings related swaps and from an economic perspective are
matched to customer balances. The amount of ineffectiveness of these items in
2007 was £23.5m.
The Group has c.£250m of investments in synthetic CDOs. The accounting
treatment of these investments differs from that of our other CDOs, despite
being cash investment instruments. This means a derivative is separated from
the host CDO with the derivative element subject to fair value accounting, with
any movement in value being recorded in the Income Statement. In the current
environment, the separated derivatives' market price has fallen significantly
which has adversely affected their current value by £49.7m, and this movement in
value has been recorded in the Income Statement. However, it is important to
note that our review of these CDOs shows that they continue to perform, and are
therefore not impaired. We will continue to review these assets on a regular
basis and any change in their value will be recorded in the Income Statement.
Other fair value movements
All of the Group's remaining wholesale assets are held as available-for-sale
with any movements in value being recorded in the balance sheet via the
available-for-sale reserve. In addition to the amounts recorded in the Income
Statement and explained in the preceding paragraphs the Group has recorded a
debit to the balance sheet of £60.4m after tax in respect of the fair value
movement on these items.
Analysis of Profits and Earnings Per Share
In order to enable stakeholders to obtain a clear view of the ongoing
performance of the Group, the Board excludes certain items that are the result
of long-term strategic decisions and/or the impacts of unusual and extreme
external events and accounting volatility arising from movements in market
values of financial instruments that can have a distorting effect on financial
performance in single reporting periods. Profit excluding such items is defined
as underlying profit. The items not included in underlying profit are the loss
on sale of commercial and housing association loans, the impairment of wholesale
assets, hedge ineffectiveness and fair value movements on treasury instruments.
These items are discussed in detail on pages 7 and 8. In 2006, the costs of
compensation for actual and potential claims for regulated endowment and
investment business were excluded. In 2006 we did not exclude hedge
ineffectiveness or fair value movements from underlying profits because of their
immateriality; however, we have excluded them from the 2006 profits here for the
purpose of direct comparability. An explanation of the 'Underlying' and
'Statutory' accounting bases is provided below.
Details of the profit before tax, profit for the financial period and earnings
per share ('EPS') on each basis are presented in the following table:
12 months to 12 months to
31 December 31 December
2007 2006
Statutory Basis
Profit before taxation £m 126.0 246.7
Profit for the financial period £m 93.2 177.7
Basic EPS p 14.9 28.2
Underlying Basis
Underlying profit before taxation £m 351.6 335.9
Underlying profit for the financial period £m 251.1 240.2
Underlying EPS p 40.2 38.1
Reconciliation of Statutory and Underlying Measurements
12 months to 12 months to
31 December 31 December
2007 2006
Profit before taxation
Statutory profit before taxation £m 126.0 246.7
Compensation costs £m - 89.4
Fair value movements £m 49.7 0.1
Hedge ineffectiveness £m 23.5 (0.3)
Investment impairment loss £m 94.4 -
Loss on sale of assets £m 58.0 -
Underlying profit before taxation £m 351.6 335.9
Earnings per share
Statutory profit for the financial period £m 93.2 177.7
Compensation costs £m - 62.6
Fair value movements £m 34.8 0.1
Hedge ineffectiveness £m 16.4 (0.2)
Investment impairment loss £m 66.1 -
Loss on sale of assets £m 40.6 -
Underlying profit for the financial period £m 251.1 240.2
Weighted average number of ordinary shares m 624.2 630.2
Underlying earnings per share p 40.2 38.1
Reconciliation of Statutory and Underlying Measurements (continued)
12 months to 12 months to
31 December 31 December
2007 2006
Taxation charge
Statutory taxation charge £m 32.8 69.0
Taxation of:
Compensation costs £m - 26.8
Fair value movements £m 14.9 -
Hedge ineffectiveness £m 7.1 (0.1)
Investment impairment loss £m 28.3 -
Loss on sale of assets £m 17.4 -
Underlying taxation charge £m 100.5 95.7
Underlying profit before taxation £m 351.6 335.9
Underlying effective tax rate % 28.6 28.5
Accounting Bases
The Group's financial information is prepared in accordance with the recognition
and measurement principles of International Financial Reporting Standards
('IFRS') as adopted for use in the European Union. This is the 'Statutory
Basis' of presentation of the Group's financial information. In addition,
information is presented on the 'Underlying Basis' which applies to certain
measures of performance. The items not included in underlying profit for 2007
are the loss on sale of commercial and housing association loans, the impairment
of wholesale assets, hedge ineffectiveness and fair value movements on treasury
instruments. In 2006 references to underlying performance measures also exclude
the costs of compensation for actual and potential claims for regulated
endowment and investment business written.
Summary of Results
12 months to 12 months to
31 December 31 December
2007 2006
Key Performance Indicators
Underlying profit before taxation* £m 351.6 335.9
Profit before taxation £m 126.0 246.7
Net interest margin % 1.10 1.19
Underlying cost:income ratio** % 42.8 44.2
Underlying earnings per share* p 40.2 38.1
Basic earnings per share p 14.9 28.2
Underlying return on equity* % 19.1 17.4
Dividend per share p 21.0 20.0
Indexed LTV % 55 53
Residential:
Gross advances £bn 14.0 10.3
Net advances £bn 8.3 5.1
Redemptions £bn 5.8 5.2
Redemptions (% opening book) % 18.5 19.7
Funding Mix:
Retail % 40 43
Wholesale % 23 25
Securitised % 17 15
Covered bonds % 13 9
Capital / Other % 7 8
Asset Mix:
Buy-to-Let % 45 40
Self-cert % 16 15
Other residential % 15 14
Commercial and housing association % 2 11
Wholesale / Other % 22 20
Lending balances - total £bn 40.4 36.1
Residential £bn 39.4 31.1
Commercial £bn 0.9 2.7
Housing association £bn 0.1 2.3
Retail savings balances - total £bn 21.0 19.7
Branch based £bn 14.4 12.8
Direct £bn 4.2 4.0
Offshore £bn 2.4 2.9
Customer deposits:customer loans % 60.0 61.0
Capital structure
Tier 1 £m 1,436.9 1,545.1
Tier 2 £m 1,227.1 1,255.5
Tier 1 ratio % 8.6 7.6
Total capital ratio % 15.1 13.2
Risk weighted assets £bn 16.7 20.4
* The Underlying basis is defined and analyses of underlying profit, costs and
earnings per share are provided on page 9.
** Cost:income ratio represents underlying administrative expenses divided by
the sum of underlying net operating income and non-operating income.
The information in this announcement does not constitute statutory accounts
within the meaning of Section 240 of the Companies Act 1985 but is derived from
the 2007 accounts. Statutory accounts for 2006 have been delivered to the
Registrar of Companies and those for 2007 will be delivered in due course. The
auditor has reported on those accounts and their reports were unqualified and do
not contain statements under Section 237 (2) or (3) of the Companies Act 1985.
Consolidated Income Statement
12 months to 12 months to
31 December 31 December
2007 2006
£m
Interest receivable and similar income 2,967.5 2,383.0
Interest expense and similar charges (2,419.8) (1,872.8)
Net interest income 547.7 510.2
Fee and commission income 81.7 91.7
Realised gains less losses on financial 6.5 2.1
instruments
Fair value movements (49.7) (0.1)
Hedge ineffectiveness (23.5) 0.3
Other operating income 9.6 5.2
Net operating income 572.3 609.4
Administrative expenses
- Ongoing (280.2) (271.6)
- Compensation - (89.4)
Loan impairment loss (22.5) (7.4)
Investment impairment loss (94.4) -
Loss on sale of assets (58.0) -
Non-operating income 8.8 5.7
Profit before taxation 126.0 246.7
Taxation (32.8) (69.0)
Profit for the financial year 93.2 177.7
Earnings per share:
- Basic 14.9p 28.2p
- Diluted 14.9p 28.1p
The results above arise from continuing activities and are attributable to the
equity shareholders.
Consolidated Balance Sheet
As at 31 December 31 December
2007 2006
£m
Assets
Cash and balances at central banks 209.2 202.6
Treasury bills 185.0 -
Loans and advances to banks 2,392.1 3,301.4
Loans and advances to customers 40,444.5 36,131.7
Fair value adjustments on portfolio hedging (53.8) (70.4)
Debt securities 6,778.7 5,299.9
Derivative financial instruments 1,175.4 291.0
Prepayments and accrued income 28.5 25.0
Other assets 653.7 21.3
Deferred tax assets 23.8 5.7
Property, plant and equipment 106.5 90.8
Intangible assets 41.0 55.2
Total assets 51,984.6 45,354.2
Liabilities
Deposits by banks 2,074.4 1,512.4
Customer accounts 24,152.6 22,201.0
Fair value adjustments on portfolio hedging (5.9) -
Derivative financial instruments 498.6 493.4
Debt securities in issue 22,308.1 17,841.3
Other liabilities 141.2 115.6
Accruals and deferred income 84.1 84.4
Current tax liabilities 23.7 96.0
Post-retirement benefit obligations 22.0 83.2
Provisions 59.7 94.8
Subordinated liabilities 1,253.7 1,247.0
Other capital instruments 161.6 165.2
Total liabilities 50,773.8 43,934.3
Equity
Capital and reserves attributable to equity holders:
Share capital 154.4 158.6
Share premium reserve 4.9 4.9
Capital redemption reserve 29.2 25.0
Other reserves (122.3) 19.1
Retained earnings 1,144.6 1,212.3
Total attributable equity 1,210.8 1,419.9
Total equity and liabilities 51,984.6 45,354.2
Consolidated Statement of Recognised Income and Expense
12 months to 12 months to
31 December 31 December
2007 2006
£m
Available-for-sale instruments:
Net losses recognised in equity during the year (82.9) (8.8)
Amounts transferred from equity and recognised in (3.4) (2.1)
profit during the year
Cash flow hedges:
Net (losses)/gains recognised in equity during the year (110.5) 16.6
Amounts transferred to profit and loss during the year (2.8) (3.0)
Actuarial gains on post-retirement benefit obligations 53.3 20.1
Taxation on the above items taken directly to equity 42.8 (11.6)
Net (expense)/income recognised directly in equity (103.5) 11.2
Profit for the financial year 93.2 177.7
Total recognised (expense)/income for the financial year (10.3) 188.9
The results above arise from continuing activities and are attributable to the
equity shareholders.
Consolidated Cash Flow Statement
12 months to 12 months to
31 December 31 December
2007 2006
£m
Cash flows from operating activities
Profit for the financial year 93.2 177.7
Adjustments to reconcile net profit to cash flow from/(used in)
operating activities:
Loss on sale of assets 58.0 -
Income tax expense 32.8 69.0
Depreciation and amortisation 22.6 18.0
Loan impairment loss 29.3 14.9
Recoveries of loans and advances previously written off (6.8) (7.5)
Investment impairment loss 94.4 -
Interest on subordinated liabilities and other capital 91.7 89.6
instruments
Net profit on sale of property, plant and equipment and (4.3) (5.5)
intangible assets
Gains less losses on sale of debt securities (3.4) (2.1)
Cash flows from operating activities before changes in operating 407.5 354.1
assets and liabilities
Net (increase)/decrease in operating assets:
Loans and advances to banks and customers (3,395.3) (2,782.6)
Net proceeds from sale of assets 3,294.8 -
Acquisitions of mortgage portfolios (4,337.9) (2,540.6)
Debt securities (119.3) 426.3
Derivative financial instruments (884.4) (28.2)
Prepayments and accrued income (3.5) 8.6
Other assets (632.4) 94.0
Net increase/(decrease) in operating liabilities:
Deposits by banks and customer accounts 2,396.0 898.2
Derivative financial instruments 5.2 162.3
Debt securities in issue (701.5) (1,811.8)
Other liabilities (35.6) (54.2)
Accruals and deferred income 210.1 61.0
Provisions (35.1) 59.9
Income taxes paid (80.4) (27.0)
Other non-cash items (165.9) 198.5
Net cash used in operating activities (4,077.7) (4,981.5)
Cash flows from investing activities:
Purchase of property, plant and equipment and intangible assets (34.3) (26.6)
Proceeds from sale of property, plant and equipment 14.5 8.5
Net cash used in investing activities (19.8) (18.1)
Cash flows from financing activities:
Purchase of own shares held to satisfy employee share plans (18.7) -
Purchase of own shares for cancellation (58.6) -
Proceeds from disposal of own shares 5.2 7.8
Proceeds from issue of subordinated liabilities - 250.0
Repayments of subordinated liabilities - (125.0)
Proceeds from secured funding 6,437.7 6,178.4
Repayments of secured funding (1,374.2) (1,164.8)
Interest paid on subordinated liabilities and other capital (79.7) (89.0)
instruments
Dividends paid (126.5) (119.2)
Net cash from financing activities 4,785.2 4,938.2
Net increase/(decrease) in cash and cash equivalents 687.7 (61.4)
Cash and cash equivalents at beginning of year 3,647.6 3,709.0
Cash and cash equivalents at end of year 4,335.3 3,647.6
Represented by cash and assets with original maturity of three
months or less within:
Cash and balances at central banks 21.0 17.8
Treasury bills 185.0 -
Loans and advances to banks 2,137.5 3,088.5
Debt securities 1,991.8 541.3
4,335.3 3,647.6
Balances maintained with the Bank of England 188.2 184.8
The Group is required to maintain balances with the Bank of England, as shown
above. These balances are not included in cash for the purposes of the Cash
Flow Statement.
Notes to the Financial Information
1. Reporting entity
Bradford & Bingley plc ('the Company') is a public limited company incorporated
in the UK under the Companies Act 1985. The financial information in these
Preliminary Results consolidates the Company and its subsidiaries (including
special purpose vehicles), together referred to as 'the Group'. The Group's
consolidated financial statements for the year ended 31 December 2007 are
included in the Group's 2007 Annual Report & Accounts available on the Group's
website www.bbg.co.uk from 12 March 2008.
2. Basis of preparation
The information in this document does not include all of the disclosures
required by IFRS in full annual financial statements and it should be read in
conjunction with the consolidated financial statements of the Group for the year
ended 31 December 2007. In preparing this financial information there have been
no material changes to the accounting policies previously applied by the Group
in preparing its Annual Report & Accounts for the year ended 31 December 2006.
3. Estimates
The preparation of the Group's Preliminary Results requires estimates,
assumptions and judgements to be made which affect the reported results and
balances. Actual outcomes may differ from these estimates with a consequent
impact on the results of future periods. The significant estimates, assumptions
and judgements made in preparing the Group's Preliminary Results include the
assessment of fair values of debt securities and embedded derivatives and the
identification of any impairment of treasury investments, in addition to those
applied in the preparation of the Group's consolidated financial statements for
the year ended 31 December 2006 (principally post retirement benefit
obligations, effective interest rates and loan impairment).
4. Net interest income
12 months to 12 months to
31 December 31 December
2007 2006
£m
Net interest income 548 510
Average interest-earning assets ('IEA') 49,743 42,692
Financed by:
Interest-bearing liabilities 47,904 41,122
Interest-free liabilities 1,839 1,570
%
Average rates:
Gross yield on IEA 5.96 5.57
Cost of interest-bearing liabilities (5.05) (4.55)
Interest spread 0.91 1.02
Contribution of interest-free liabilities 0.19 0.17
Net interest margin 1.10 1.19
Average bank base rate 5.51 4.64
Average 3-month LIBOR 6.00 4.84
Average 3-year swap rate 5.81 5.07
5. Non-interest income
12 months to 12 months to
31 December 31 December
2007 2006
£m
Fee and commission income 81.7 91.7
Realised gains less losses on financial instruments 6.5 2.1
Other operating income 9.6 5.2
Non-operating income 8.8 5.7
Underlying income 106.6 104.7
Analysed as:
Mortgage broking 5.0 10.9
Investment 30.8 31.5
General insurance 19.9 19.4
Other financial services 2.0 2.4
Total financial services 57.7 64.2
Lending related income 26.2 28.9
Income from sale and leaseback transactions 8.8 5.7
Other 7.4 3.8
Realised gains less losses on financial instruments 6.5 2.1
Underlying income 106.6 104.7
Fair value movements (49.7) (0.1)
Hedge ineffectiveness (23.5) 0.3
Total 33.4 104.9
Non-interest income comprises net operating income (excluding net interest
income) and non-operating income.
6. Administrative expenses
12 months to 12 months to
31 December 31 December
2007 2006
£m
Staff related costs 121.0 118.2
Premises 20.5 21.9
Marketing 19.7 15.3
Depreciation and amortisation 23.7 18.2
Other operating costs 95.3 98.0
Underlying administrative expenses 280.2 271.6
Compensation costs - 89.4
Total 280.2 361.0
7. Taxation
12 months to 12 months to
31 December 31 December
2007 2006
£m
Profit before taxation 126.0 246.7
UK corporation tax at 30% (37.8) (74.0)
Effects of:
Expenses not deductible for taxation (4.3) (3.6)
Lower rate on overseas earnings 7.2 3.0
Rate change 0.7 -
Adjustments in respect of previous years 1.4 5.6
Total taxation charge for the year (32.8) (69.0)
Effective tax rate (%) 26.0 28.0
The tax charge for the year includes overseas tax of £22.1m (2006: £20.1m).
Deferred tax appropriately reflects the change to the standard rate of UK
corporation tax from 30% to 28% which will become effective 1 April 2008.
8. Earnings per share
12 months to 12 months to
31 December 31 December
2007 2006
Basic (p) 14.9 28.2
Diluted (p) 14.9 28.1
Underlying (p) 40.2 38.1
Earnings per share is calculated using the following
amounts of profit attributable to equity shareholders:
Profit for the financial year (£m) 93.2 177.7
Underlying profit for the financial year (£m) 251.1 240.2
Shares (m)
Weighted average number of ordinary shares in issue 624.2 630.2
Dilutive effect of ordinary shares issuable under 0.8 2.0
Company share schemes
Diluted weighted average number of ordinary shares 625.0 632.2
Shares acquired by employee share trusts, which are deducted from equity
shareholders' funds, have been excluded from the calculation of earnings per
share as they are treated as if they are cancelled until such time as they vest
unconditionally to the employee.
9. Dividends
12 months to 12 months to
31 December 31 December
2007 2006
£m
Dividends paid 126.5 119.2
A 2007 final dividend of 14.3 pence per share (2006: 13.4 pence) will be paid on
2 May 2008 to shareholders on the register at the close of business on 25 March
2008, making a total proposed dividend in respect of 2007 of 21.0 pence per
share (2006: 20.0 pence). In accordance with IAS 10 'Events after the Balance
Sheet Date' the final dividend is not accrued at 31 December 2007 as it was not
a liability as at that date.
10. Wholesale assets
As at 31 December 31 December
2007 2006
£m
Cash and balances at central banks 209.2 202.6
Treasury bills 185.0 -
Loans and advances to banks:
- Reverse Repos 253.4 0.5
- Cash 794.1 1,257.3
- CDs 1,344.6 2,043.6
2,392.1 3,301.4
Debt securities:
Liquidity portfolio:
- UK Government securities 1,518.8 425.3
- Bank and supranational bonds 1,398.8 1,362.0
- Bank certificates of deposit 1,223.6 1,092.7
- UK and European AAA MBS 1,204.3 1,030.4
- Other asset backed securities 257.4 379.5
5,602.9 4,289.9
Investment portfolio:
- Principal protected notes 582.0 337.9
- CDOs and CLOs 456.6 458.1
- SIVs 63.5 135.7
- Credit funds 73.7 78.2
1,175.8 1,010.0
6,778.7 5,299.9
Total 9,565.0 8,803.9
11. Lending - mortgage movements
12 months to 31 December 2007 As at 31 December 2007
New mortgages Net advances Balances
£m % £m £m %
Residential
Organic
Buy-to-let 6,494.8 67 3,965.8 20,960.8 67
Self-cert 1,966.4 20 851.4 5,491.9 17
Standard and other 1,241.4 13 423.2 4,959.6 16
specialist
Total 9,702.6 100 5,240.4 31,412.3 100
Acquired
Buy-to-let 1,216.8 28 929.8 2,172.1 27
Self-cert 1,352.4 31 763.8 3,048.2 38
Standard and other 1,768.7 41 1,338.4 2,789.7 35
specialist
Total 4,337.9 100 3,032.0 8,010.0 100
Buy-to-let 7,711.6 55 4,895.6 23,132.9 59
Self-cert 3,318.8 24 1,615.2 8,540.1 22
Standard and other 3,010.1 21 1,761.6 7,749.3 19
specialist
Total residential 14,040.5 100 8,272.4 39,422.3 100
Residential 14,040.5 94 8,272.4 39,422.3 97
Commercial property and 937.8 6 (3,954.6) 1,022.2 3
housing associations
Total 14,978.3 100 4,317.8 40,444.5 100
12 months to 31 December 2006 As at 31 December 2006
New mortgages Net advances Balances
£m % £m £m %
Residential
Organic
Buy-to-let 5,124.3 66 2,803.5 16,962.4 65
Self-cert 2,159.6 28 1,419.5 4,635.6 18
Standard and other 463.8 6 (730.0) 4,622.1 17
specialist
Total 7,747.7 100 3,493.0 26,220.1 100
Acquired
Buy-to-let 475.0 19 278.3 1,225.9 25
Self-cert 1,209.6 47 775.1 2,263.4 46
Standard and other 856.0 34 586.4 1,425.3 29
specialist
Total 2,540.6 100 1,639.8 4,914.6 100
Buy-to-let 5,599.3 54 3,081.8 18,188.3 58
Self-cert 3,369.2 33 2,194.6 6,899.0 22
Standard and other 1,319.8 13 (143.6) 6,047.4 20
specialist
Total residential 10,288.3 100 5,132.8 31,134.7 100
Residential 10,288.3 89 5,132.8 31,134.7 86
Commercial property and 1,242.5 11 (3.9) 4,997.0 14
housing associations
Total 11,530.8 100 5,128.9 36,131.7 100
12. Loan impairment loss
On residential On commercial Total
mortgages property and
housing
association loans
12 months to 31 December 2007
£m
Allowances for credit losses against loans and advances
to customers have been made as follows:
At 1 January 2007 47.8 1.6 49.4
Write-offs (23.8) - (23.8)
Loan impairment charge/(credit) 30.4 (1.5) 28.9
Discount unwind 0.4 - 0.4
7.0 (1.5) 5.5
At 31 December 2007 54.8 0.1 54.9
The Income Statement charge comprises:
Loan impairment charge/(credit) 30.4 (1.5) 28.9
Recoveries (6.8) - (6.8)
Discount unwind 0.4 - 0.4
Total Income Statement charge/(credit) 24.0 (1.5) 22.5
On residential On commercial Total
mortgages property and
housing
association loans
12 months to 31 December 2006
£m
Allowances for credit losses against loans and advances
to customers have been made as follows:
At 1 January 2006 46.1 2.3 48.4
Write-offs (13.9) - (13.9)
Loan impairment charge/(credit) 15.4 (0.7) 14.7
Discount unwind 0.2 - 0.2
1.7 (0.7) 1.0
At 31 December 2006 47.8 1.6 49.4
The Income Statement charge comprises:
Loan impairment charge/(credit) 15.4 (0.7) 14.7
Recoveries (7.5) - (7.5)
Discount unwind 0.2 - 0.2
Total Income Statement charge/(credit) 8.1 (0.7) 7.4
13. Arrears and possessions on residential mortgages
As at 31 December 31 December
2007 2006
Arrears
Over 3 months:
Number of cases Number 5,610 4,015
Proportion of total % 1.48 1.20
Asset value £m 731.2 498.9
Proportion of book % 1.85 1.60
Possessions
Number of cases Number 560 322
Proportion of total % 0.15 0.10
Asset value £m 97.0 52.7
Proportion of book % 0.25 0.17
Total arrears and possessions
Number of cases Number 6,170 4,337
Proportion of total % 1.63 1.30
Asset value £m 828.2 551.6
Proportion of book % 2.10 1.77
Residential loan impairment balance
As % of residential balances % 0.14 0.15
As % of arrears and possessions % 6.62 8.56
14. Average loan to value ratios
Residential mortgages
12 months to 31 December 2007 2006
Residential new lending LTV (%) 74 76
As at 31 December
LTV of residential lending balances:
Current LTV (%) 72 70
Indexed LTV (%) 55 53
15. Loss on sale of assets
Commercial Housing Total
properties association
£m
Net proceeds from sale (1,890.0) (2,064.0) (3,954.0)
Book value of assets sold 1,972.1 2,026.6 3,998.7
82.1 (37.4) 44.7
Less:
Costs 13.3
Loss on sale of assets 58.0
In April 2007, the Board took the strategic decision to sell our commercial
lending and housing association mortgage portfolios in order to focus on the
higher-margin, high growth, specialist mortgage market to maximise future
returns and capital efficiency. The sale of the commerical property and housing
association loans completed for £4.0bn.
16. Secured funding
As at 31 December 2007 Date of Securitised Secured
Transaction assets funding
£m
Securitisations
Aire Valley Finance (No.2) plc October 2000 356.4 333.6
Aire Valley Mortgages 2004-1 plc October 2004 775.0 775.0
Aire Valley Mortgages 2005-1 plc April 2005 782.3 782.3
Aire Valley Mortgages 2006-1 plc August 2006 2,430.1 2,430.1
Aire Valley Warehousing 3 Ltd December 2006 1,000.0 1,000.0
Aire Valley Mortgages 2007-1 plc May 2007 2,495.1 2,495.1
Aire Valley Mortgages 2007-2 plc November 2007 1,156.3 1,156.3
8,995.2 8,972.4
Covered Bonds
Bradford & Bingley Covered Bonds LLP May 2004 2,129.2 1,342.0
Bradford & Bingley Covered Bonds LLP May 2006 3,303.5 2,082.1
Bradford & Bingley Covered Bonds LLP June 2006 374.5 236.0
Bradford & Bingley Covered Bonds LLP October 2006 621.6 391.8
Bradford & Bingley Covered Bonds LLP June 2007 2,676.5 1,686.9
Bradford & Bingley Covered Bonds LLP July 2007 285.1 179.7
Bradford & Bingley Covered Bonds LLP September 2007 793.4 500.0
Bradford & Bingley Covered Bonds LLP October 2007 665.9 419.7
10,849.7 6,838.2
Total 19,844.9 15,810.6
In May 2007 Aire Valley Mortgages 2007-1 plc issued £2,495.1m of loan notes
denominated in US Dollars, Euros and Sterling to purchase a £2,495.1m share in
the Master Trust. At 31 December 2007 the value of the share in the Master
Trust was £2,495.1m.
In November 2007 Aire Valley Mortgages 2007-2 plc issued £1,156.3m of loan notes
denominated in Euros and Sterling to purchase a £1,156.3m share in the Master
Trust. At 31 December 2007 the value of the share in the Master Trust was
£1,156.3m.
The Covered Bond programme issued further series of loan notes during the year.
In June 2007: Euro 1,250.0m with bullet maturity in June 2010 and Euro 1,250.0m
with bullet maturity in June 2017.
In July 2007: CHF 200.0m with bullet maturity in July 2011, CHF 150.0m with
bullet maturity in July 2027 and CHF 200.0 with bullet maturity in July 2015.
In September 2007: £500.0m with a bullet maturity in September 2009.
In October 2007: Euro 500.0m with bullet maturity in October 2008 and Euro
100.0m with bullet maturity in October 2010.
In October 2007: CHF 75.0m of the October 2006 issue and CHF 75.0m of the July
2007 issue were repurchased and cancelled.
In December 2007: CHF 15.0m of the June 2006 issue and CHF 35.0m of the July
2007 issue were repurchased and cancelled.
As at 31 December 2006 Date of Securitised assets Secured funding
transaction
£m
Securitisations
Aire Valley Finance (No.2) plc October 2000 465.4 453.2
Aire Valley Mortgages 2004-1 plc October 2004 1,775.0 1,775.0
Aire Valley Mortgages 2005-1 plc April 2005 998.5 998.5
Aire Valley Mortgages 2006-1 plc August 2006 2,430.1 2,430.1
Aire Valley Warehousing 3 Ltd December 2006 1,000.0 1,000.0
6,669.0 6,656.8
Covered Bonds
Bradford & Bingley Covered Bonds LLP May 2004 1,945.7 1,342.0
Bradford & Bingley Covered Bonds LLP May 2006 3,018.7 2,082.1
Bradford & Bingley Covered Bonds LLP June 2006 351.9 242.7
Bradford & Bingley Covered Bonds LLP October 2006 614.0 423.5
5,930.3 4,090.3
Total 12,599.3 10,747.1
17. Reconciliation of changes in equity
12 months to 31 December 2007 Share Share Capital Available-for-sale Cash flow Retained Attributable
capital premium redemption reserve hedge earnings to equity
reserve reserve reserve holders
£m
As at 1 January 2007 158.6 4.9 25.0 (1.5) 20.6 1,212.3 1,419.9
Net change in available-for-sale - - - (60.4) - - (60.4)
instruments
Net change in cash flow hedges - - - - (81.0) - (81.0)
Actuarial gains on post-retirement
benefit obligations - - - - - 37.9 37.9
Net (losses)/gains not recognised
in the Income Statement - - - (60.4) (81.0) 37.9 (103.5)
Profit for the financial year - - - - - 93.2 93.2
Total recognised income - - - (60.4) (81.0) 131.1 (10.3)
Dividends - - - - - (126.5) (126.5)
Use of own shares on exercise of
employee options and for other
employee share plans - - - - - 5.2 5.2
Fair value of share options taken
to share option reserve - - - - - 4.6 4.6
Deficit on share option exercises - - - - - (4.8) (4.8)
Purchase of own shares held to
satisfy employee share plans - - - - - (18.7) (18.7)
Purchase and cancellation of own (4.2) - 4.2 - - (58.6) (58.6)
shares
As at 31 December 2007 154.4 4.9 29.2 (61.9) (60.4) 1,144.6 1,210.8
12 months to 31 December 2006 Share Share Capital Available-for-sale Cash flow Retained Attributable
capital premium redemption reserve hedge earnings to equity
reserve reserve reserve holders
£m
As at 1 January 2006 158.6 4.9 25.0 6.2 15.8 1,129.8 1,340.3
Net change in available-for-sale - - - (7.7) - - (7.7)
instruments
Net change in cash flow hedges - - - - 4.8 - 4.8
Actuarial gains on post-retirement
benefit obligations - - - - - 14.1 14.1
Net (losses)/gains not recognised
in the Income Statement - - - (7.7) 4.8 14.1 11.2
Profit for the financial year - - - - - 177.7 177.7
Total recognised income - - - (7.7) 4.8 191.8 188.9
Dividends - - - - - (119.2) (119.2)
Use of own shares on exercise of
employee options and for other
employee share plans - - - - - 7.8 7.8
Fair value of share options taken
to share option reserve - - - - - 4.6 4.6
Deficit on share option exercises - - - - - (2.5) (2.5)
As at 31 December 2006 158.6 4.9 25.0 (1.5) 20.6 1,212.3 1,419.9
18. Capital structure
As at 31 December 31 December
2007 2006
£m
Tier 1
Share capital and reserves 1,210.8 1,419.9
Adjustments 81.3 (74.4)
Net pension deficit (4.0) 50.8
Innovative tier 1 148.8 148.8
Total tier 1 capital 1,436.9 1,545.1
Upper tier 2 capital 580.1 583.8
Lower tier 2 capital 647.0 671.7
Total tier 2 capital 1,227.1 1,255.5
Deductions (146.7) (97.2)
Total capital 2,517.3 2,703.4
Risk weighted assets (£bn) 16.7 20.4
Tier 1 ratio (%) 8.6 7.6
Total capital ratio (%) 15.1 13.2
Innovative tier 1 and tier 2 subordinated liabilities exclude any fair value
adjustments arising from the hedging of these instruments that are included in
the consolidated Balance Sheet. Risk weighted assets are calculated according to
the credit risk element of Pillar I of the Basel II Standardised approach for
2007 (2006 has not been restated). Further anlaysis of the Regulatory position
will be set out in the Group's forthcoming Pillar 3 disclosures.
19. Retail branch network
As at 31 December 31 December
2007 2006
Number of branches
Banking 197 205
Third party agents 140 138
Total 337 343
20. Staff numbers
12 months to 12 months to
31 December 31 December
2007 2006
Year end total headcount 3,035 3,154
Average headcount
Full time 2,451 2,511
Part time 691 663
Full time equivalent 2,862 2,892
Shareholder Information
2008 Calendar
19 March 2008 Ex-dividend date
25 March 2008 Record date
22 April 2008 AGM and Interim Management Statement
02 May 2008 Payment of interim dividend for 2007
29 July 2008 Announcement of 2008 interim results
Shareholders' interests in shares at 31 December 2007*
Number of Number of
Size of holding shareholders % shares %
1 - 250 840,210 89.37 208,195,177 33.71
251 - 500 77,195 8.21 30,417,049 4.92
501 - 1,000 13,475 1.43 9,686,725 1.57
1,001 - 5,000 8,019 0.85 16,126,503 2.61
5,001 - 10,000 597 0.06 4,299,189 0.70
10,001 - 100,000 438 0.05 12,681,162 2.05
100,001 - 200,000 89 0.01 12,672,375 2.05
200,001 - 500,000 69 0.01 21,900,138 3.55
500,001 - 1,000,000 36 0.00 25,611,192 4.15
1,000,001 - 5,000,000 50 0.01 112,191,413 18.16
5,000,001 and over 17 0.00 163,893,611 26.53
Total 940,195 100 617,674,534 100
*The interests above include holdings in the Bradford & Bingley Nominee Account,
certificated and uncertificated holdings.
At the close of business on 31 December 2007 the share price of Bradford &
Bingley plc was 268.00p and the market capitalisation was £1.6bn.
Bradford & Bingley's 2007 Preliminary Results presentation will be broadcast
live at 0930 hours on 13 February 2008 via the following web address:
www.bbg.co.uk
Contacts
Media Relations:
Nickie Aiken Simon Moyse, Finsbury
Tel: +44 20 7067 5632 Tel: +44 20 7251 3801
Fax: +44 20 7067 5656 Email: simon.moyse@finsbury.com
Email: nickie.aiken@bbg.co.uk
Investor Relations:
Katherine Conway Neil Vanham
Tel: +44 1274 554928 Tel: +44 1274 806341
Fax: +44 1274 551022 Fax: +44 1274 551022
Email: katherine.conway@bbg.co.uk Email: neil.vanham@bbg.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
