Barclays increases gross mortgage market share to 13%

Barclays increased its gross new mortgage lending to £16.9bn in 2010, up from £14.2bn in 2009, increasing its market share to 13%, up from 10% in 2009.

The bank has today reported pre-tax profits of £6.07bn for 2010, up 32% on last year’s £4.6bn.

It has reduced its impairment charges by 30% to £5.67bn and performance payments fell 7% to £3.4m in 2010.

Gross new lending in the UK was slightly up on last year at £36bn, compared to £35bn in 2009, this does not include the £7.5bn arising from the acquisition of Standard Life Bank.

Its UK retail banking profit before tax increased 39% to £989m, up from £710m in 2009.

It also grew average mortgage balances by 16%, reflecting positive net lending and the acquisition of Standard Life Bank.

Mortgage balances stand at £101.2bn, up from £87.9bn in 2009, representing a 8% share of the market by value, up from 7% in 2009.

The bank’s new net mortgage lending was £5.9bn in 2010, compared to £5.7bn in 2009.

The average LTV on a current valuation basis stayed unchanged at 43%, while the average LTV for new mortgage lending was 52%, up slightly on last year’s 48%.

Impairment charges stand at £29m, up from £26m in 2009,  as a percentage of the portfolio, three month arrears rates for UK loans improved to 2.6%, down from 3.8% in 2009.

Bob Diamond, chief executive of Barclays, says: “In the UK there remains significant political and media attention on the banks’ lending delivery. In 2010 we provided £36bn of gross new lending to UK households and businesses and we added an additional £7.5bn of UK loans to our balance sheet when we acquired Standard Life Bank at the beginning of the year. We are open for business.”