Internet bank Egg's chances of breaking-even in the fourth quarter took an upturn today after ...
Internet bank Egg's chances of breaking-even in the fourth quarter took an upturn today after it announced lower than expected losses for the first half of the year.
The bank also announced it signed up an extra 370,000 new customers in the first half, up 19% from last year and bringing its total customer base to 1.72m. The bank's pre-tax loss for the six months to 30 June 2001 narrowed 21% to £63.4m compared to a loss of £80.7m the previous year.
The bank is trying to take advantage of cross selling opportunities and cross sales actually doubled in the half year to 218,000 from the same period last year.
Bad debts rose to £33m from £14.5m, which was caused by the growth in credit card balances and a higher proportion of unsecured lending products. Credit cards remain the principal business of the company.
Egg Invest has also performed well since the start of the year to reach 32,000 customers, three times its size last year. However the bank is struggling in the mortgage market with mortgage sales down to £164m compared with £318m the previous year.
At midday on Tuesday the group's shares improved 2p to 164p, marginally higher than last year's 160p float price.
Developed by industry-wide group
Joined in 2002
'Educate clients' children'
Raised £15m earlier this week
From 8pm Friday 19 October