Egg reports cracking results

Europe's largest pure internet bank has moved into profit for the first time since its launch in June 2000.

Egg, launched by UK insurer Prudential, which still holds an 80 per cent stake, said that, despite third-quarter losses of £18.4m, its November figures display a profit.

The bank has attracted customers with generous interest rates on savings and credit cards, and has expanded its customer base by 569,000 this year, bringing it to almost two million.

Egg said that its credit card offering was a key profit driver.

"Cards have been making a positive contribution since 1 October 2001 as the book is now large enough to earn sufficient revenues to cover ongoing operational, marketing and bad debt costs in addition to the costs of the up-front incentive offers on the product," the company said.

Egg, which has seen a drop in new customers recently, will announce its 2001 yearly results on 25 February.