Feeds

Egg losses soar on France debacle

UK 'satisfactory'

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Egg's decision to pull out of the loss-making French market is continuing to hammer the UK internet bank as the group recorded a pre-tax loss of £103m in the nine months to the end of September. Much of this loss is down to the £113m Egg has already announced it is spending to exit France, along with the £35m its French business has lost so far this year.

Instead Egg, 79 per cent owned by The Pruduential, is talking up its UK business, which delivered a "satisfactory set of results in what has proved to be a challenging year for Egg". The UK made a pre-tax profit of £53m for the first nine months of the year, down from the £57m profit notched up last year.

In further retrenchment to its core UK business, Egg today said it had flogged Egg Invest, its funds supermarket, to Fidelity FundsNetwork. The transaction comes with one-off costs of £3m, but should help the company save money in the future.

Said chief exec Paul Gratton: "Our UK business has delivered a satisfactory set of results, with the potential sale process initiated by Prudential in January creating uncertainty in addition to the increased competition and rising interest rates that have impacted the credit card and personal loan markets.

"Looking forward, Egg people are firmly focused on the future development of our core UK business, leveraging our brand and high quality customer base to expand our franchise."

By mid morning shares in Egg were up 0.5p to 90.25p.®

Related stories

Pru pulls out of great Egg race
Egg still hasn't got a buyer
Egg flees France
Egg punters up, losses down

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.