 Bradford & Bingley plans to make cost savings of �40m |
Banking group Bradford & Bingley (B&B) is to sell its mortgage broking arm Charcol as part of a wide ranging review of its business. The firm plans to reshape itself as a specialist lender and financial services products retailer.
B&B said it was looking to offload other non-core assets and make savings of �40m ($71m) to improve profits.
Shares in the firm rose 6.1% to 283.75 pence following the news, valuing the bank at about �1.8bn.
'Simplify and clarify'
In addition to the sale of Charcol, B&B said it planned to sell its Estate Agency and SecureMove property services businesses, as well as two independent financial advisor businesses.
Explaining the move, B&B said the non-core businesses put up for sale accounted for �150m of revenues in 2003 and "did not make a material contribution to group profits".
The company said its wider savings drive would be achieved by creating a simpler organisational structure following the disposals.
Chief executive Steven Crawshaw said: "Bradford & Bingley will simplify, clarify and continue to build upon its core propositions of specialist lending and the retailing of financial services products on the High Street."
The disposals - part of a review of B&B set up by Mr Crawshaw - are expected to be completed by the end of the year.
Estate Agency and SecureMove employ about 3,000 staff at 291 branches, while Charcol has 500 employees at 18 branches.
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Bradford & Bingley will simplify, clarify and continue to build upon its core propositions of specialist lending and the retailing of financial services products on the High Street 
