The Abbey National Group has posted losses of £934m for 2002, compared with a profit of £1.47m a yea...
The Abbey National Group has posted losses of £934m for 2002, compared with a profit of £1.47m a year earlier, and halved dividends to 25p which has forced the bank to return to its core focus on personal financial services.
The chief executive's review of Abbey's financial results for 2002 described how a buoyant Personal Financial Services business was dragged down by large write-offs and charges relating to goodwill, credit exposures to wholesale banking and life assurance embedded value.
Although the dismal state of the markets is partly to blame, the chief executive, Luqman Arnold, admitted the bank was not well positioned for these market conditions and said its performance was "extremely unsatisfactory".
As a result, Scottish Mutual International - is reported to have problems with its with-profits funds - and Scottish Provident International are both up for sale.
But Abbey's reported losses was used as a launching pad for a 'radical shift in strategy' to focus solely on providing personal financial services in the UK and selling off divisions in its wholesale bank.
Abbey is also planning to reduce costs of £200 million in the PFS business, which could spell job cuts.
Abbey is currently trading down 12p to 361p at 13:30, after a rally this morning which saws its shares traded at an intra-day high of 413p.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation