In its Q2 Investor report, it revealed that the total income accumulated by its financial services division in the last quarter was £15.6m, similar to the £15.5m income it made in 2011. However its operating profit fell from £1.3m in 2011 to £688,000 in 2012.
The number of mortgages arranged in 2012 stood at 13,475, up from 13,338 the year before. The value of the mortgages rose during the period from £1.6bn to £1.7bn.
Countrywide said that a number of factors have contributed to its decision to reduce operational overheads.
Nigel Stockton (pictured), financial services director at Countrywide said: “While we expected modest lending growth in 2012 and invested in mortgage distribution in preparation for this growth, it is clear that mortgage volumes in 2012 are going to be even lower than 2011.
“Mortgage volumes continue to be under pressure from capital and liquidity constrained lender appetite and mortgage availability is now subject to stricter application of lending criteria than six months ago.
“As a result, we are focussed on responding accordingly and all operational overheads are being reviewed as we focus on reducing costs in line with the reduced market. We expect natural turnover to allow us to achieve the appropriate level of coverage to ensure we deliver growth in our full year results.”
Countrywide said its investments in Mortgage Intelligence and Capital Private Finance are performing in line with expectations.
In its investor report, Countrywide also announced it has become the lead valuer for the Co-operative Bank and will manage its valuations panel across its Co-op, Britannia and Platform brands.
The group said its conveyancing division had a challenging second quarter performance, which showed a 4% increase in income to £5.969m in 2012 but a 13% reduction in EBITDA at £1,653m compared with 2011.
Countrywide said: “Continued investment in the HSBC contract meant that Q2 2012 EBITDA performance was under pressure.”
The Group revealed that its earnings before interest, tax, depreciation and amortization (EBITDA) for the first six months of 2012 was £19.6m, an increase of 17% on the same period in 2011. The EBITDA for the quarter was £15m, a slight decrease of 3% on Q2 2011. It said that 2012 results have been depressed by the Stamp Duty holiday ceasing at the end of March 2012.
