View more on these topics

B&B taken into public ownership

Bradford & Bingley’s direct channels and retail deposits have been transferred to Abbey, following B&B being placed into public ownership by the Treasury.

B&B’s retail deposits, branch network and related employees will transfer under the provisions of the Banking Special Provisions Act 2008, to Abbey National, a wholly-owned subsidiary of Banco Santander.

All of B&B’s customer loans and Treasury assets, which includes the £41bn of mortgage assets, will be taken under public ownership.

While its £20bn retail deposit base with 2.7 million customers and its direct channels including 197 retail branches, 141 agencies and related employees will be transferred to Abbey.

The acquisition price will be £612m, including the transfer of £208m of capital relating to offshore companies.

The combined business of Abbey, Alliance & Leicester and B&B will have 1,286 branches across the UK. It is also expected that upon completion of the transfer, Santander’s UK market share of retail deposits will increase to around 10%1, and the combined business will also have a customer base of 24 million.

António Horta-Osório, chief executive of Abbey, says: ‘This is good news for Bradford & Bingley’s savings customers. They can be certain that their hard-earned savings are with a bank they can trust as Abbey is part of the Santander Group, one of the world’s most successful banks.

“It has an AA credit rating and a strong retail focus with more branches worldwide than any other international bank. As such, Santander has been well-positioned to succeed in the current market turbulence.


“The transfer of deposits and the branch network further increases the scale of our operations in the UK to around 10% of the market, an important strategic objective for us. We will significantly increase the potential of our distribution capability through the additional branches and have brought a further 2.7 million customers to the bank.”

Recommended

MortgageStream teams up with Lime Network

Lime Mortgage Network has added the MortgageStream system to its panel of products and services available to its appointed representatives and directly authorised members.

EC to regulate credit rating agencies

The European Commission’s consultation on credit rating agencies ended last month and by the end of October the EC will table proposals to regulate them.

Keep on Rockin’

Speculating on the future of Northern Rock in a recent issue of Financial World, John Goodfellow (pictured) wrote that as chief executive of Skipton Building Society he may be interested in the bank if it is not to be returned to the public listed sector. “Other ownership forms should be considered,” he added, suggesting that […]

Kensington to clarify B&B loan book deal

Kensington is trying to clarify its position with Bradford & Bingley following today’s nationalisation of its mortgage loan book.

The death of retirement – a boost for protection?

According to our recent report on the death of retirement, changes in workplace pension provision mean that coming generations of retirees could have a radically different experience of retirement from their parents. The average contribution rate into an old-style final salary pension was around 20% of total wages, the statutory minimum for a new automatic […]

Newsletter

News and expert analysis straight to your inbox

Sign up