Abbey sees profits surge ahead

Published on Friday 2 February 2007 01:47

TRADING profit at Abbey has jumped 24 per cent and statutory profits 18 per cent at just over 1 billion euros (£661.7 million), the company's Spanish owners have revealed, adding that it considered the once-troubled firm was firmly on track to target more of more of its rivals' business.

It said mortgage net lending for the year and estimated market share more than doubled while bank account openings were up 17 per cent. Cost savings since the company's acquisition by Banco Santander in November 2004 are now at 290m, just short of the 300m targeted with one year to go in the turnaround.

During the year, 2,000 full-time jobs were taken out of the business, leaving Abbey with around 17,000 staff serving 712 branches.

Chief executive Antonio Horta-Osorio said: "Abbey made strong progress in 2006. We've accelerated revenue growth and have continued to successfully reduce costs across the business."

He added Santander's own banking platform was ready to be introduced across the Abbey business by the end of this year, allowing it to push strongly into new areas.

It began the drive at the end of the last year when Abbey launched a new buy-to-let mortgage range, in line with its strategy to grow in higher margin areas. In the first half of this year, Abbey plans to launch a new credit card range.

Abbey said gross mortgage lending of 32.6 billion was around 18 per cent higher, with an estimated market share of 9.4 per cent.