The main conclusions are:
- Continue to develop strong specialist lending business
- Refocus and grow branch based retail business
- Reduce costs in these two core businesses
- Dispose of non-core businesses
These changes will lead to a marked improvement in the Group’s cost to income and return on equity ratios. As a result of the cost reduction and disposal processes announced today, a charge will be taken for exceptional items. Further guidance as to the magnitude and timing of this charge will be given as soon as it has been quantified.
Group 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 actions we are taking will allow increased focus of management and financial resources on core activities, will increase the profit generating potential of a reshaped retail business and will give rise to substantial reduction in the cost base of the Group.”
