Yorkshire Building Society this week announced a major turnaround in the group's fortunes storming back to a profit of £65.4 million for the first half of 2010 against a loss of £22.3 million for the same period last year. While the company has benefited from the recent merger with the Chelsea Building Society there is no doubt that action taken in 2009 has given the society a strong base for future and the potential to continue on a relatively steep growth path.
In a surprise move it has been revealed that the Nationwide is set to scrap the current 1% currency conversion charge on overseas Nationwide debit card transactions in favour of a 2% charge on all overseas transactions and a £1 withdrawal fee. However, the situation is slightly different for those holding Nationwide credit cards as the current 1% overseas charge will be retained for transactions within the EU and outside of the EU. However, there is also some good news!
Whether or not the top 5 banks in the UK announce cumulative profits of over £8 billion for the first 6 months of 2010 is irrelevant really, but how is the UK banking sector apparently thriving while the rest of the UK struggles to make ends meet?
Earlier this week we saw the introduction of Metro Bank into the UK with a very different approach to high Street banking, akin to the retail world, working hours and simplification of the current banking set up in the UK. The company has promised that customers will be able to set up a new account, apply for new services and make use of their various facilities in no more than 15 minutes. When was the last time you were able to open a bank account within 15 minutes!
The first truly new retail bank in the UK opened its doors yesterday when US billionaire Vernon Hill launched his vision for the future of UK banking in the shape of Metro Bank. The company will offer retail hours, "unparalleled service" and a range of products which the company believes will be suitable for everybody in the UK. However, it is the pledge that it will take only 15 minutes for customers to open new accounts which has caught the eye of many people.
Santander, the Spanish financial conglomerate, has today issued a statement confirming the creation of 600 jobs in its UK division with plans afoot to significantly grow the UK operation. This comes only hours after the company confirmed it was in final talks to acquire the 300+ Royal Bank of Scotland branches which the company was forced to put up for sale by the European Union.
Spanish financial giant Santander is rumoured to be looking towards the UK for further expansion with the company set to finalise a deal to acquire 318 Royal Bank of Scotland branches early next week. While the fee for the branches has yet to be confirmed it will be substantial although it will also give Santander more exposure to the UK high street and more influence over the UK marketplace.
The subject of overdrafts, and overdraft fees, has been in the financial press for many months now and will continue to grab the headlines for some time to come. However, there is no doubt that many people across the UK make good use of their overdrafts to give themselves a buffer between unexpected expenditure and everyday spending. But do you actually need an overdraft?
Launched in a blaze of glory just a few years ago, Islamic banking in the UK is struggling to survive at this moment in time with the likes of Lloyds bank, the initial main stream provider of Islamic banking in the UK, withdrawing a number of Shariah-based mortgages over the last few months. It seems that a lack of competition and a lack of demand within the UK have impacted short-term growth prospects but what does the future hold?
Earlier today we mentioned the BBC Panorama programme which covered the controversial subject of overdraft charges in UK. The programme went out this evening and there are already concerns regarding the level of charges but some experts believe that the programme may well give an unbalanced view of the UK financial arena. Is it helpful to question overdraft charges yet again?