Alliance & Leicester reported a 30% fall in profit last year after being hit by a £185m writedown on its investments in the credit market, The Times reports.
Britain's seventh-largest bank revealed this morning that pre-tax profit plunged from £569m for 2006 to £399m for the 12 months to December 31. The bank last month said that it would take a £185m charge on its investments in structured investment vehicles (SIVs) and collateralised debt obligations (CDOs), after they lost value in the global liquidity crisis. The write-down was more than three times higher than an estimate given late last year of £55m. The bank has £15bn worth of exposure to the credit markets. BARCLAYS PRESIDENT BOB DIAMOND is preparing an assault on Wall Street's bigge...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes