Shares in Britain's Abbey National slid by14 per cent today after the second-biggest mortgage lender reported a wider than expected second straight annual loss and said its core retail business would struggle this year.
Abbey posted a 2003 pre-tax loss of £686 million sterling, far bigger than the roughly £143 million analysts had expected, after taking a hit from the sale of risky assets as it tries to return to its consumer banking roots.
A year earlier Abbey had a restated loss of £947 million.
Chief executive Mr Luqman Arnold is trying to revive the core personal financial services unit, neglected as previous management expanded into corporate lending.
He is selling corporate banking assets like junk bonds and private equity stakes after they tipped Abbey to its first loss last year.
But trading profit from personal financial services (PFS) fell 16 per cent to £1.02 billion pounds, below a consensus forecast of £1.09 billion. The bank said it was cautious about earnings at the business because of shrinking profit margins.
