Profits Down For Home Loan Supplier
Results for the first half of the year have seen the Alliance and Leicester report profits of just two million pounds, somewhat less than the two hundred and ninety million pounds profit from the same period last year.
Just like a number of other organisations the Alliance and Leicester has been forced to write down the value of its assets due to the impact of the credit crunch. With assets valued at so much less than before they have had to reflect this in the balance sheet, thus reducing profits accordingly.
It was sensible therefore for the Alliance and Leicester to pre warn the market that this type of result was coming. By doing this they avoided a share price plunge and can carry on as normal. Trading wise they are actually performing very well, which suggests future results could be good.