20 October 2017
visit www.avoka.com

Egg losses mount as France fails to deliver

23 July 2003  |  3868 views  |  0 Mr Paul Gratton CEO Egg

UK Internet bank Egg says it is closely monitoring the performance of its fledgeling operation in France as sales volumes continue to disappoint.

Egg reported a first half pre-tax loss of £22.8 million against a profit last year of £1.2 million, with the French business contributing a loss of £48.7 million.

While Egg UK has delivered strong growth in customer numbers, lending balances and profits during the first half of the year, sales volumes in France have been slower than expected, admits Egg CEO Paul Gratton (pictured).

Commenting, he says: "We continue to closely monitor performance having regard to our planned €300 million profit and loss investment."

The customer base in France now totals 115,000, with 42,000 cards in issue. Card balances stand at €68 million, up from €34 million at the end of Q1, and revolving balances have risen from 41% in the first quarter to 70% by end-Q2.

Egg UK delivered a profit before tax for the half year of £36.7 million (H1 2002: £11.6 million), with sales of personal loans at £711 million, tripling the values achieved in the year-ago period. Q2 2003 profit before tax was £19.4 million up from £17.3 million in Q1 2003.

Says Gratton: "Looking at Q2 in particular, revenues exceeded £100 million in the quarter for the first time with strong growth in fees and commissions, especially from cross selling insurance products to new loan and card customers."

In joint ventures, a £1.2 million net loss in Q2 2003 includes £0.8 million for Funds Direct which is mainly in relation to development costs for the integrated business to business platform currently being built. Egg's share of Marlborough Stirling Mortgage Services Limited and IfOnline Group Limited losses amounted to £0.2 million.

Despite the disappointing view from across the Channel, the City took heart from the continued strength of the UK business, pushing Egg shares up by 5.2% to 131 pence in mid-morning trading.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Egg France manages customer e-mail with Kana

Egg France manages customer e-mail with Kana

15 July 2003  |  3373 views  |  0 comments
Egg to provide customers with lastminute deals

Egg to provide customers with lastminute deals

18 June 2003  |  4401 views  |  0 comments
Egg scales back international ambitions as French show resistance

Egg scales back international ambitions as French show resistance

24 April 2003  |  3657 views  |  0 comments
Egg narrows losses; eyes US expansion

Egg narrows losses; eyes US expansion

24 February 2003  |  3860 views  |  0 comments
Prudential declines comment on Egg bid rumours; MBNA denies speculation

Prudential declines comment on Egg bid rumours; MBNA denies speculation

07 February 2003  |  4380 views  |  0 comments
Egg hires Citibanker to run French business

Egg hires Citibanker to run French business

02 January 2003  |  3522 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlvisit www.vasco.com

Who is commenting?

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15975 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
9066 views comments | 16 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8212 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7218 views comments | 9 tweets | 17 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
6656 views comments | 18 tweets | 25 linkedin

Featured job

Find your next job