You are here: Home - News -

Barclays profits jump a third, as mortgage lending hits £17bn

by: Mortgage Solutions
  • 15/02/2011
  • 0
Barclays profits jump a third, as mortgage lending hits £17bn
Barclays increased its gross new mortgage lending to £16.9bn in 2010, giving it a 13% share of the market.

Mortgage lending was up from £14.2bn in 2009, when it had 10% market share.

Barclays group revealed that its pre-tax profits jumped almost a third in 2010 to £6.07bn, slightly higher than analysts were expecting.

The bank reported a 32% increase on the £4.59bn profit it made in 2009, despite “continued economic challenges”, it said.

Barclays overall new lending in the UK was almost unchanged at £36bn compared with £35bn in 2009, although this figure did not include the £7.5bn in loans arising from the acquisition of Standard Life Bank.

Barclays net new mortgage lending amounted to £5.9bn, up from £5.7bn in 2009.

Average mortgage balances grew from £87.9bn in 2009 to £101.2bn last year, a rise of 16%. Mortgage redemptions increased to £11bn from £8.5bn in 2009.

The average LTV of Barclays’ mortgage portfolio, including buy to let, remained the same at 43%, while the average LTV of new mortgage lending increased to 52%, up from 48% from 2009.

Home finance impairment charges totalled £29m, up from £26m in 2009, while three month arrears rates for UK loans improved to 2.6% of Barclays’ portfolio from 3.8% in 2009.

Bob Diamond, chief executive of Barclays, said: “Lending is a fundamental part of what we do to support economic growth and our customers and clients.

“In the UK, there remains significant political and media attention on the banks’ lending delivery. In 2010, we provided £36bn of gross new lending to UK households and businesses and we added an additional £7.5bn of UK loans to our balance sheet when we acquired Standard Life Bank at the beginning of the year. We are open for business.”

Total group revenues was £31.44bn.

There are 0 Comment(s)

You may also be interested in