Egg internet banking profits down

Internet bank Egg announced a loss of £103 million in the third quarter of 2004.

The company blamed "increased competition and rising interest rates that have impacted the credit card and personal loan markets".

It has also been paying to withdraw from the French market, where operating losses hit £35 million.

In a statement, Chief Executive Officer Paul Gratton admitted that 2004 "has proved to be a challenging year for Egg."

The bank intends to renew its focus on the UK market and will dispose of its funds market Egg Invest to Fidelity FundsNetwork.

Interest rates have been hiked five times in the last year in an effort to curb public spending, which has seen levels of personal indebtedness jump.