Egg on track to be profitable

Egg says it's on track to break even during the fourth quarter of this financial year.

Chief executive Paul Gratton says that earnings are growing strongly while costs are remaining flat.

The internet bank's pre-tax loss for the third quarter is £81.1m - that's down from £1115.1m last year.

It now has more than 1.8 million customers, having added a further 83,000 new customers in the third quarter.

Mr Gratton says:"2001 is proving to be a record year for growth at Egg. Our margins continue to improve, with operating income in the third quarter growing by 28% compared to the second quarter."

Egg has also concluded a deal through Microsoft, its strategic partner, to sell investment products through its consumer portal, MSN, making Egg Invest available in France and Germany.