Scottish Widows Bank sees profits rise by 14%

by Richard Kilner

Story link: Scottish Widows Bank sees profits rise by 14%

Internet and telephone based mortgage and deposits bank Scottish Widows Bank has announced its annual financial results for 2009.

The firm saw pre-tax profits rise by 14% compared to 2008, and recorded profits of £38.2m.

Total customer deposits rose significantly for the year, up to £3.8bn (a rise of £1.1bn or 40%) thanks to the firm introducing a range of fixed rate deposit accounts and specifically targeting certain market segments.

The mortgage book was relatively flat, declining by a marginal £0.1bn to £6.5bn, a fact attributed to the weak conditions in the market.

Managing Director Graeme Hartop has welcomed the results, describing the firm’s performance as a strong one, in challenging and volatile conditions.

Hartop went on to say that costs had declined by 17% and that the firm intended to use 2010 to build upon recent successes, whilst keeping its eye on risks.

Earlier this year speculation arose that Lloyds Banking Group may sell Scottish Widows due to the introduction of new banking regulations (Basel III) that will see some £18bn wiped off the banking giant’s balance sheets.