Credit card boom helps Egg surf into profit
Egg, the four-year-old internet bank, yesterday celebrated its first
reported profit as customer growth in its booming credit card business
accelerated during the first quarter of 2002. Its shares closed at an
all-time high.

Quarterly pre-tax profits were ?4.1m, against a loss of ?37.2m in the same
period last year. Egg began trading profitably in during the last three
months of 2001, in line with its business plan.

Paul Gratton, the chief executive, said the recruitment of 157,000 new
credit card customers, up from 154,000 the previous quarter, had exceeded
the bank's expectations. However, he said there was still a discount in the
group's share price reflecting the relative immaturity of the business.

"We have always said we are a long-term play," he said. "You shouldn't judge
us against Lloyds and Barclays."

While credit card balances rose ?145m to ?1.9bn, aggregate savings deposits
fell, by ?345m to ?5.3bn.

Shares in Egg rallied in line with the sector, gaining 15p to 182p to value
it at ?1.5bn.

Mr Gratton said there were further acquisition opportunities in Europe to
build on its purchase of France's ZeBank.

zrodlo: Independent

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