Bradford & Bingley upbeat but writedowns worry rating agencies

As banks report losses on their asset portfolios, concern from raters continues. Yet despite reports of an increase in mortgage arrears, B&B remains confident, especially in the buy-to-let market

UK banks began revealing their end-of-year results last month, with Bradford & Bingley's sizeable writedowns bringing fresh fears over the stability of the sector.

Bradford & Bingley (B&B) posted writedowns of £225.6 million, halving its pre-tax profits to £126 million. These include treasury asset impairments of £94.4 million, a loss on sale of commercial and housing association portfolios of £58 million, hedge ineffectiveness of £23.5 million and other fair-value movements on treasury