Santander profits bounce back but bank delays long-awaited UK stock floatation
UK boss: Ana Botin wants to expand lending to small and medium-sized firms
Santander's plans to float its British arm on the stock market this year have been delayed by uncertainty over new regulations on ring-fencing and capital.
A float is now unlikely before 2015, with hopes of a London Stock Exchange listing dashed by a lack of clarity on how banks will have to split their retail business from risky ‘casino’ activities – a key proposal of the Independent Commission on banking.
Banks also fear stricter rules on capital and leverage, leaving investors in the dark on potential returns.
UK chief executive Ana Botin wants to expand lending to small and medium-sized firms and believes Spanish-owned Santander is well placed to help exporters through its wide international network.
She has increased the number of relationship managers for SMEs to 650 from around 500 and corporate business centres to 50 from 34.
Corporate lending rose 13 per cent, with £4.1billion of new loan facilities for SMEs.
Pre-tax profits rose 5 per cent to £921million in the UK and were up 85 per cent to £4.6billion for the whole group. Write-offs for bad loans and the cost of previous bad conduct halved to £695million.
Santander is unlikely to need to set aside more to cover PPI mis-selling, with £260million still in the pot and payouts on claims running at £11million a month.
It attracted 232,000 new customers to its 123 current account from other providers, helping boost current account balances by 75 per cent to £27.9billion.
Mortgage lending rose £4billion to £18.4billion, despite the bank’s plans to reduce its exposure to high loan to value and interest-only home loans.
Most watched Money videos
- German car giant BMW has released the X2 and it has gone electric!
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- Mini unveil an electrified version of their popular Countryman
- MG unveils new MG3 - Britain's cheapest full-hybrid car
- Mail Online takes a tour of Gatwick's modern EV charging station
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Iconic Dodge Charger goes electric as company unveils its Daytona
- Paul McCartney's psychedelic Wings 1972 double-decker tour bus
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Retail sales ground to a halt last month as shoppers...
- Unilever waters down targets on plastic packaging,...
- MARKET REPORT: Bruising week for FTSE amid Middle East fears
- Volvo's screen folly: New EX30 compact crossover lacks a...
- INVESTING EXPLAINED: What you need to know about cocoa...
- Why is bitcoin halving this weekend? How the event could...
- 888 shares rise as William Hill owner posts...
- BUSINESS LIVE: Retail sales stagnate; 888 revenues beat...
- As record 2.8m sign off as long-term sick, work-shy UK...
- L'Oreal posts better than expected sales as demand for...
- Creators of key interest rate benchmark criticise courts...
- SHARE OF THE WEEK: Wall Street investors looking for...
- With cosmetics shares priced low, is now the time to...
- US and Europe are at odds and threat of a disastrous end...
- Mondi pulls out of potential bidding war to buy rival...
- Wall Street pins hopes on a set of upbeat results from...
- MARKET REPORT: Airlines soar as Easyjet eyes a record summer
- G7 fights for Ukraine cash as Russia's economy booms -...