Souffle strategy goes cold on the Halifax
Article Abstract:
Halifax chief executive, Mike Blackburn is leaving the bank, and there is speculation as to why he has left. The bank has begun to give back excess capital through a stock buyback rather than to former members. Halifax ceased to be a building society and went public charging high prices to long-term customers. The bank's initial figures were impressive but this can create expectations that become a burden. Major reductions in costs are difficult to achieve and the bank cannot attract enough new mortgages to offset those lost to competitors, though margins have been cut. This has hot profitability.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Halifax
Article Abstract:
Halifax is a United Kingdom mortgage bank which saw a stock price rise after its flotation in 1997. The stock price has since fallen and could fall further. Profit margins in the market for savings and mortgages are likely to be eroded by increased competition. The company is the biggest mortgage lender in the United Kingdom, but may have problems retaining its mortgage business over the long term due to the need to maximise stockholder value.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Bradford and Bingley
Article Abstract:
Bradford and Bingley has a high cost base, though its profit margins are protected by its not seeking to expand its mortgage business.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 2001
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