LONDON: British bank Alliance & Leicester Plc. said its net mortgage lending has quadrupled to 1.4 billion pounds in the first quarter compared with 350 million pounds in the previous year period and this represented a market share of 6.3 per cent.
The country's seventh largest bank said the net new lending had risen from a share of 5.4 per cent for all of 2005, and compares with its 3.4 per cent overall share of the market.
The bank's net interest margin was below the 1.41 per cent reported for the second half of 2005. The margin is expected to be below 1.36 per cent for 2006 in view of lower mortgage and saving margins and a shift in its mix to lower-margin assets, the bank said.
Its unsecured personal lending came down to 565 million pounds during the quarter, which is 37 per cent down from the year earlier period.
The bank said its costs in the first half would be similar to the year earlier figure of 347 million pounds. Costs had fallen last year as customers switched to using the internet and telephone services. Its asset quality remained strong and was above average in each business sector.
The bank plans to launch buy-to-let, self-certified and other higher-risk specialist mortgage products shortly. These products will be backed by U.S. bank Lehman Brothers.
Alliance & Leicester is seen as a takeover target. There is speculation that French bank Credit Agricole had made an approach. The bank did not react to queries in this regard.
Credit Agricole had said it had not made any formal approach but refused to rule out doing so in the future.
Spanish bank Banco Santander Central Hispano SA is also said to be eyeing the Alliance and Leicester.
Alliance & Leicester shares gained 11 pence, or 1 per cent, to 1,175 pence. The price has risen 18 per cent this year, making it the best performing stock in the FTSE 350 Banks Index.
