Bradford & Bingleys main business activities are: LENDING providing a wide range of loans secured on property, focussed on specialist segments of the residential and other markets. RETAIL which sells a wide choice of financial products through its branches and direct channels, including our own savings products.

20.09.06 : ING initiated coverage at Bradford & Bingley with a buy rating and awarded Alliance & Leicester and Northern Rock with hold ratings, saying the UK mortgage market should continue to grow at double-digit rate, dealers said. In a research note published this morning, ING said that its valuation models for Bradford & Bingley suggest that total shareholder returns could exceed 15%. It said that it expects the stock to rise on the back of renewed investor confidence in the banks ability to continue to generate solid earnings; stemming from its revitalised franchise and a resilient buy-to-let market. It argued that it sees five underlying factors that will continue to provide stability to the UK mortgage market, namely: low levels of unemployment, bad debt arrears and house price inflation that, despite recent growth, remains low from a historical perspective. Effective guidance on interest rate expectations by the Bank of England, and increased borrower sophistication. ING believes that the UK mortgage market has the strength to retain similar levels of growth in the near and medium term, although 2007 will be slower than 2006. It said that the two main drivers of growth are demand continuing to outstrip supply and falling interest rates in 2007. ING said UK retail banks will benefit the most from this growth and it expects the lack of deep margin erosion and strict control to outweigh the impact of rising bad debt. The key risk to its forecast is the threat of weaker-than-anticipated economic conditions. It said that Bradford & Bingleys current stock price does not reflect the true value of future earnings, believing that this situation will correct itself as the bank continues to deliver solid results and the strength of the buy-to-let market persists.