British mortgage bank and takeover target Abbey National reported an 11 per cent rise in annual profits today as it diversified further away from the British mortgage and savings market.
Pre-tax profit rose to £1.97 billion sterling (euro 2.92 billion). Analysts had forecast profits at £1.94 billion.
Abbey said more than half of its profits had come from businesses other than mortgages and savings, including wholesale banking, where profits were up 37 per cent and life assurance which produced a 29 per cent profit increase.
Chief executive Mr Ian Harley said the bank expected to increase the contribution from non-core businesses to around 60 per cent by the end of 2001 and 65 per cent by 2002 - a year earlier than planned.
The bank spent £190 million last year developing new revenue sources that resulted in a 14 per cent increase in costs. But Abbey predicted this would reduce by more than 50 per cent in 2001 and still further in 2002.
Reuters