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Santander Uk Chief Ana Botin Issues Severe Profits Warning As Economy Stalls

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8797850/Santander-UK-chief-Ana-Botin-issues-severe-profits-warning-as-economy-stalls.html

After an investor presentation in London, analysts believe the bank is likely to lose out on £750m of profits over the next three years. The three-year shortfall compares with a 2010 profit at the UK arm of £1.5bn.

Ms Botín, who has led the business since last December, said returns were likely to fall in 2012 and 2013 as she committed to invest almost £500m to improve the bank's customer service levels.

She warned that Santander UK, which has delayed plans to list its shares on the London Stock Exchange, would be forced to contend with "a combination of strong headwinds", citing low GDP growth and regulatory costs as key concerns.

Speaking at the investor day, she added: "We believe the cumulative effect of a liquidity buffer, FSCS [Financial Services Compensation Scheme] and the bank levy, plus the costs of structural reforms, will increase ten-fold from where we were in 2008 to what we expect to see in 2013, impacting our profit before tax.

Surely Santander UK isn't slowly sinking into a quagmire? Not used Santander is their customer service poor compared to other banks?

Good to see poor lending decisions isn't a factor in the banks problems.

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I'm not sure why Santander is even bothering lending into Britain. Latin America is this incredible growth machine right now.

If you had £1 billion pounds to lend, would you give it to over-indebted Brits.. who also are in a shaky economy. Or finance one of countless major developments going on in Latin America.

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I expect there'll be an element of "new broom" in that. She wants bad news out now, when it can still be blamed on her predecessors.

Things like that happened at Lloyds and RBS, yet the bad news just kept coming :wacko:

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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