Profits warning by Abbey National

Abbey National Plc warned yesterday that weak trading at its core retail banking business could damage full-year profits, sending shares in the Britain’s second-biggest mortgage lender lower.

Mortgage and saving revenues were worse than expected in the first quarter of this year, Chief Executive Luqman Arnold told reporters.

The bank lost £1.2 billion ($2.1 billion) of deposits in the first quarter as it cut savings rates, and investment sales slumped to £26 million from £43 million a year ago.