A&L announces a �192m write-down

Alliance and Leicester is the latest bank to be hit by write downs

UK bank Alliance and Leicester has announced a �192m write-down after the value of assets fell following problems in the global financial markets.

But the firm said its funding position was "strong" and overall there had been no deterioration in the asset quality of customer loans and advances.

As a result, the bank said it would look at improving cost efficiency.

On Monday, A&L said it would raise rates for new mortgage borrowers who could not raise a big deposit.

The bank added that it had seen no "signs of stress" in its mortgage or unsecured personal loan books.

It managed to cut its mortgage balances in the four months to April, as planned.

Shares in the bank closed 10.1% lower at 458.75p, making it the day's biggest loser in the FTSE 100 stock index.

E-mail this to a friend

Printable version