BRITISH retail financial services group Abbey National plc, which owns just under 10 per cent of the Irish Permanent, reported a 6 per cent rise in half year profits to £558 million sterling yesterday but said conditions in its main markets would remain competitive.
Chief executive, Mr Peter Birch said he would continue a policy of diversification, including acquisitions, and high dividend payouts up 20 per cent this time to 8.7p a share rather than returning capital through share repurchases - as some other British banking groups have done. "We are different because we were a building society. We need to diversify.
Abbey is still looking for further acquisitions to add to its capacity in the life assurance and mortgage markets.
Mr Birch said its Abbey National Life and Scottish Mutual businesses were doing well but the bank's main priority is to increase capacity in the life assurance area.
Its results featured a rise in earnings per share to 27.6 pence from 24.7 but also a rise in bad debt charges to £49 million from £28 million associated with a large rise in its consumer loans portfolio.
