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| Bradford & Bingley announces loss | Bradford & Bingley announces loss |
| (21 minutes later) | |
| Bradford & Bingley (B&B), a buy-to-let loans specialist, has reported a loss for the six months to 30 June, with impairment charges up sharply. | Bradford & Bingley (B&B), a buy-to-let loans specialist, has reported a loss for the six months to 30 June, with impairment charges up sharply. |
| B&B reported a loss of £26.7m for the period, against a £180.4m profit last year, and said it remained "cautious". | B&B reported a loss of £26.7m for the period, against a £180.4m profit last year, and said it remained "cautious". |
| Credit impairment charges for the six months rose to £74.6m, up from £5.3m in the same period last year. | Credit impairment charges for the six months rose to £74.6m, up from £5.3m in the same period last year. |
| B&B recently completed a £400m share rights issue in order to improve its balance sheet. | B&B recently completed a £400m share rights issue in order to improve its balance sheet. |
| Access to credit | Access to credit |
| "As a focused business within a sector that is currently going through a cyclical downturn, Bradford & Bingley has experienced a particularly challenging first half," said the lender. | "As a focused business within a sector that is currently going through a cyclical downturn, Bradford & Bingley has experienced a particularly challenging first half," said the lender. |
| "We have witnessed unprecedented financial dislocation, with wholesale medium-term funding markets being difficult to access since last summer". | "We have witnessed unprecedented financial dislocation, with wholesale medium-term funding markets being difficult to access since last summer". |
| B&B's rights issue had to be restructured twice after initially failing to attract sufficient interest. | B&B's rights issue had to be restructured twice after initially failing to attract sufficient interest. |
| Private equity firm Texas Pacific Group (TPG) had been about to invest in the bank but it withdrew when credit agency Moody's downgraded B&B's debt rating. | Private equity firm Texas Pacific Group (TPG) had been about to invest in the bank but it withdrew when credit agency Moody's downgraded B&B's debt rating. |
| B&B's impairment charges for the first half of 2008 soared largely as a result of a rise in the number of mortgages in arrears for three months or more. | B&B's impairment charges for the first half of 2008 soared largely as a result of a rise in the number of mortgages in arrears for three months or more. |
| The lender said has seen arrears increase and said it "anticipated this trend to continue throughout the second half". | |
| The firm said it was taking steps to detect early arrears cases and improve collection. | The firm said it was taking steps to detect early arrears cases and improve collection. |
| 'Favourable conditions' | |
| Looking ahead, B&B said it would focus on higher quality loans and maintain a "prudent approach to funding". | |
| While the bank is still going to focus on the buy-to-let market, it said it would reduce the volume in the second half until "more favourable conditions return". | |
| In June, Steven Crawshaw resigned from his role as chief executive due to health problems. He was replaced earlier this month by Richard Pym, the former head of Alliance & Leicester. |