Record profits for Santander as 3,000 jobs go at Abbey

25th February 2005, Comments 0 comments

Record profits for Santander as 3,000 jobs go at Abbey

Record profits for Santander as 3,000 jobs go at Abbey

25 February 2005

MADRID-Spain's biggest bank announced record profits as the British mortgage bank Abbey National which it took over said
it would cut 3,000 jobs.

Banco Santander Central Hispano (SCH), which took over Abbey in November, said its profits had risen 20 percent in the past year to EUR 3,136 billion (USD 4,14 bn).

Abbey National said 2,000 employees would be informed of the decision by March, in a statement accompanying its full-year results.

"The vast majority of the roles removed to date relate to back-office functions without affecting our risk and compliance capability," the statement said.

The bank was also set to restructure its call centre operations at 25 sites across Britain.

A "programme of site rationalisation" was to reduce the number of call centres during 2005, the bank said.

Abbey National became a wholly-owned subsidiary of the Santander group in a EUR 12.3 billion takeover that made SCH the world's tenth-largest bank.

Following the purchase a new management team was installed and briefed with controlling costs, the statement said.

Abbey reported annual pre-tax profits of GBP 273 million pounds, compared with a loss of GBP 686m in 2003.

SCH said its results did not include a contribution from the recently acquired British bank Abbey National, which would be consolidated at the beginning of this year.

Net interest revenue climbed 8.5 percent to EUR 8.63 bn, while
operating profit rose 14.4 percent to EUR 6.54 bn, the bank said in a statement.

The bank noted that it had charged EUR 527m against earnings to cover early-retirement costs, while it also wrote-down EUR 154m of goodwill.

[Copyright EFE with Expatica]

Subject: Spanish news

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