B&B announces losses as property market drops

1 September 2008

Crunch-hit UK bank Bradford & Bingley (B&B) has declared losses of $50 million for the first half of 2008.

The firm, which is heavily exposed to the declining British property market through its mortgage lending arm, is suffering from an increase of asset writedowns and bad debts.

By way of comparison, over the same period last year B&B declared a net income of around $330 million.

"In the light of continuing weakness in the housing market and the wider economy, we continue to expect arrears and repossessions to increase for the remainder of the year, although we will be putting further resources into tackling the problem," the bank said in a statement.

Earlier this week, mortgage lender Nationwide said that house prices in the UK have declined by 10.5 per cent over the past 12 months.

This means that almost $40,000 has been wiped off the value of the average property.

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