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Barclays mortgage lending rises to £7.8bn in H1 2012

by: Adam Williams and Dan Jones
  • 27/07/2012
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Barclays mortgage lending rises to £7.8bn in H1 2012
Gross mortgage lending at Barclays rose to £7.8bn in the first half of the year, according to the bank’s half-year results.

Gross mortgage lending has risen from the £7.6bn figure recorded in the same period last year. This means Barclays now holds mortgage balances of £110bn, up from the £107.8bn recorded at the end of December 2011.

The number of UK mortgage accounts rose substantially to 932,000, up 7,000 on one year ago.

The average loan-to-value (LTV) ratio for new mortgage lending rose slightly to 55%, although the total LTV level of its mortgage portfolio remained flat at 44%. The percentage of Barclays mortgages in more than 90 days of arrears remains at 0.3%.

The proportion of new mortgages above 85% LTV was 4.8%. The bank said that the increased average LTV for new mortgages was boosted by the launch of a 90% LTV product, which reflected its increased appetite for risk.

The bank’s adjusted profit before tax rose 13% to £4.2bn for the first six months of 2012, slightly ahead of analyst estimates. Net income for the period rose by 9% year-on-year to £3.1bn.

Its retail division saw pre-tax profits rise 15%, with profits for the corporate and investment banking arm rising 11% – though this masked a 2% decline in investment banking profits.

But these figures, combined with a 38% rise in pre-tax profit for its wealth management income, demonstrate “the benefits of the universal banking model”, Barclays said.

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