British bank Alliance & Leicester reported first-half profit little changed today as it promised cost cuts and said unsecured loan quality was strong and stable.
Core operating profit for the six months ended June 30th was £263 million, compared with £262 million a year earlier, the bank said.
The profit figure beat the average forecast of about £258 million, though figures were complicated by the transition to IFRS accounting rules.
Investors have been concerned about banks' unsecured lending as some customers struggle to repay after interest rates have risen. Banks such as Lloyds TSB and HSBC have said their UK customers are having difficulty repaying.
The first-half loan impairment charge rose £12 million to £30 million. Finance Director David Bennett said £3 million of the rise was from worsening unsecured credit quality, with the rest from increased lending and IFRS rules.
The bank's performance was boosted by cost controls, which helped make up for flat revenue, which rose just £2 million to £679 million on an underlying basis, the bank said.
Alliance & Leicester said full-year costs would be lower than in 2004, having said earlier in the year that expenses would rise in line with inflation.