Abbey National burns its fingers

Professional Adviser
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Abbey National is unlikely to find its winning ways again until next year according to today's Inter...

Abbey National is unlikely to find its winning ways again until next year according to today's Interim Pre-close Statement, which points out that earnings will fall far short of previous expectations. Poorly performing junk bonds, exposure to failed energy company Enron, and investments in telecoms stocks have hit the mortgage lender with provisions for £256m in bad debts, and that just for the six months to 30 June. Sales of with-profits bonds have also fallen sharply. This means the Abbey National group's full-year earnings are expected to be "substantially lower" than ...

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