Bank Irel13.375 Regulatory News (BOI)

24 Nov 2005 07:03

Bristol & West PLC24 November 2005 BRISTOL & WEST GROUP RESULTSfor the six months to 30 September 2005 Commentary Bristol & West Group (the 'Group') has undergone significant structural change sinceSeptember 2004 with the sale of the branch network in September 2005 to BritanniaBuilding Society for total consideration of £156m, and the sale of Chase de Vere andtransfer of the commercial asset book and offshore operations to another part of theBank of Ireland Group, both in the second half of the year ended 31 March 2005. The key continuing operation is the residential mortgage book, which has demonstratedstrong growth over the 12 month period. The loan book has increased strongly in theperiod from September 2004 to September 2005 reflecting increased market share with nodeterioration in asset quality. The September 2004 result benefited from the release of bad debt provisions. Operatingexpenses have continued to be tightly controlled in the six months to September 2005. Unaudited Unaudited 6 months to 6 months to 30/09/05 30/09/04 £m £m Continuing operations Interest and similar income 454.9 418.9Interest expense and similar charges (362.1) (317.0)Net interest income 92.8 101.9 Fee and commission income 9.4 17.4Fee and commission expense (5.6) (4.5)Net fee and commission income 3.8 12.9 Net trading income (2.9) -Other operating income 6.8 7.1Impairment losses on loans and advances (0.1) 16.5Operating expenses (61.8) (64.3)Profit before taxation from continuing operations 38.6 74.1 Taxation (11.3) (18.0)Profit for the period from continuing operations 27.3 56.1 Discontinued operations Result for the period from discontinued operations 125.3 7.0(Note 1)Profit for the period 152.6 63.1 Preference share dividends payable - (3.2)Profit for the period attributable to equity 152.6 59.9shareholders Earnings per share expressed in pence per share- Basic 24.9p 9.8p- Diluted 21.8p 8.6p Earnings per share from continuing operations- Basic 4.5p 9.1p- Diluted 3.9p 8.0p BRISTOL & WEST GROUP BALANCE SHEET as at 30 September 2005 Unaudited Unaudited 30/09/05 30/09/04 £m £m Assets Cash and balances with central banks 8.1 27.2 Loans and advances to banks 2,051.3 884.9 Loans and advances to customers 19,655.6 18,532.5 Financial assets at fair value (2004: Financial 334.5 335.3 assets at book value) Derivative financial instruments 79.1 - Intangible assets 36.7 46.1 Property, plant and equipment 70.1 80.2 Deferred tax assets 6.3 30.2 Other assets 44.0 94.0 Total assets 22,285.7 20,030.4 LIABILITIES Deposits from other banks 17,838.0 10,798.5 Other deposits 442.6 413.5 Derivative financial instruments and other trading 69.0 - liabilities Due to customers 2,551.6 7,494.8 Debt securities in issue 69.2 183.0 Other borrowed funds* 78.6 - Other liabilities 313.9 305.3 Provisions 21.9 25.6 Current tax liabilities 25.1 17.3 Retirement benefit obligations 69.4 51.1 Total liabilities 21,479.3 19,289.1 EQUITY Share capital* 306.6 385.2 Retained earnings 474.7 331.5 Other reserves 25.1 24.5 Total shareholders' equity 806.4 741.2 Minority interest - 0.1 Total equity 806.4 741.3 Total equity and liabilities 22,285.7 20,030.4 * With effect from 1 April 2005 and in accordance with the requirements of IAS39 (Financial Instruments: Recognition and Measurement), preference shares arereclassified as debt rather than equity as at 30 September 2005. BRISTOL & WEST GROUP CASHFLOWfor the six months to 30 September 2005 Unaudited Unaudited 6 months to 6 months to 30/09/05 30/09/04 £m £mNet cash flow from operating activities Profit before tax 168.1 82.1 Adjusted forDepreciation and amortisation 5.9 7.2Impairment losses on loans and advances to customers 0.1 (16.5)Cash inflow relating to sale of branch network (155.6) -included in investing activities (Note 2)Other non-cash movements 20.5 13.7 39.0 86.5Changes in operating assets and liabilities Loans and advances to banks (457.7) (0.6)Loans and advances to customers (2,139.5) (1,226.0)Other assets 52.8 (17.0)Deposits from other banks 7,068.3 1,290.2Due to customers (4,159.5) (94.8)Debt securities in issue (10.0) (34.8)Other liabilities 49.9 0.4Provisions (7.6) (11.0)Taxes paid (9.8) (20.2)Net cash from / (used in) operating activities 386.9 (113.8) Cash flows from investing activities Net investment in intangible assets and property, (1.7) 3.1plant and equipmentCash inflow from sale of branch network (Note 2) 155.6 -Subordinated liabilities (22.1) (20.9)Net cash from / (used in) investing activities 131.8 (17.8) Cash flows from financing activities Subordinated debt issue - 60.0Capital repayment of finance lease (0.2) -Net cash (used in) / from financing activities (0.2) 60.0 Net increase in cash and cash equivalents 557.5 14.9 BRISTOL & WEST GROUP RESULTSfor the six months to 30 September 2005 Note 1 - Discontinued Operations Result for the period from discontinuedoperations 6 months to 6 months 30/09/05 to £m 30/09/04 £mGroup Post tax results from discontinued operations 3.7 7.0 Gain on disposal of operation net tangible assets 124.2 -(Note 2) Taxation (2.6) - Net gain on disposal 121.6 - Result for the period from discontinued 125.3 7.0operations Discontinued operations contributed £21.4m (2004: £41.1m) to revenue, £5.3m to pre taxprofit (2004: £8.0m) after expenses of £16.1m (2004: £33.1m). The taxation relating tothe discontinued operations was £1.6m (2004: £1.0m). The discontinued operations resided in the financial advice and savings segment. Note 2 - Disposal of Branch Operations £m Total assets carrying value 5.6 Cost of disposal- Staff costs 4.1- Legal and professional fees 5.6- Systems costs 6.9- Impairment of software 3.7- Other 5.5 25.8 Gain on disposal of operation net tangible assets 124.2 Cash consideration received 155.6 The disposal of Branch operations took place on 20 September2005. BRISTOL & WEST GROUP RESULTSfor the six months to 30 September 2005 NOTES This report is compiled to meet UK Listing Authority requirements for Bristol & West plcpreference shareholders. The most recent dividend was paid to preference shareholders on15 November 2005 for the period from 15 May 2005 to 14 November 2005 inclusive. Thedividend rate is fixed at 8.125%. Up to 31 March 2005 Bristol & West Group prepared its Report and Accounts in accordancewith UK Generally Accepted Accounting Principles (UK GAAP). From 1 January 2005 alllisted companies in the EU are required to produce consolidated accounts prepared underIFRS. The Group has fully implemented IFRS from 1 April 2005 and will produce its firstfull IFRS accounts for the year ending 31 March 2006. Companies are not required to restate comparatives for IAS 32 (Financial Instruments:Disclosure and Presentation) and IAS 39 (Financial Instruments: Recognition andMeasurement) in their first set of IFRS accounts. In opting for this exemption, the Grouphas applied UK GAAP to accounting for financial instruments for the September 2004comparative period. This information is provided by RNS The company news service from the London Stock Exchange