Abbey still has that losing habit

ABBEY warned today it may post a successive annual headline loss but stressed that the probable deficit reflected how quickly it was tackling the problems of the past.

The former Abbey National, which lost £984m in 2002, said its statutory results for 2003 'may well show a loss'. Analysts had pencilled in a modest profit for this year of about £270m.

Abbey is disposing of its vast portfolio of junk bonds and other unwanted financial assets faster than it expected and at better prices. But it has to book the losses on disposal. Chief executive Luqman Arnold said: 'It's a timing thing. It's a reflection of our success.'

He added that last month's relaunch was going well with staff and customers positive, while the three-year revival programme was on track. Organisational changes - including product simplification and staff training schemes - would drag down performance until next June.