As the Co-Op Bank goes on sale, is now the time to buy UK banks? February 14, 2017 It wasn't hard to spot the irony when Paul Flowers, chairman of the avowedly ethical Co-Operative Bank and a methodist minister, was arrested for drug possession in 2013. In the same year, the mutual Co-operative Group ceded control of the ailing lender to its bondholders, after a massive £1.5bn hole was discovered in its balance [...]
Nationwide blames low interest rates as profits drop – but building society’s results were still ahead of expectations February 10, 2017 Nationwide profits dropped during the nine months to 31 December, with the building society blaming continued low interest rates. The figures Underlying profit before tax dropped by 23 per cent to £866m from £1.13bn in the same period of last year. Statutory profit before tax was down 16 per cent to £946m from £1.12bn – [...]
The government’s assault on buy-to-let landlords is hurting tenants February 10, 2017 The bill for the government’s misguided war on buy-to-let is coming due. The Royal Institution of Chartered Surveyors (RICS) said yesterday that rents are likely to rise by 25 per cent over the next five years, outpacing house price growth, as landlords pare back their portfolios and tenants are left to fight over a diminishing supply [...]
Karma Group’s founder and chairman John Spence explains how and why he plans to double the size of his business February 6, 2017 I cleaned toilets in Gatwick Airport for a bit, but that’s the only real job I’ve ever had,” says John Spence, founder and chairman of The Karma Group. A university drop-out, the hotelier and resort-owner originally became a tea boy for a music agency. Before long, he was representing bands like Culture Club, Bananarama and [...]
Output in the UK’s construction industry grew unexpectedly slowly in January February 2, 2017 The pound fell off its highs this morning after figures revealed output in the UK's construction industry had grown unexpectedly slowly in January – suggesting the sector's tentative recovery is swiftly running out of steam. Markit's purchasing managers' index for the construction industry dropped to 52.2 in January, from 54.2 in December and against expectations of 53.8. Any figure [...]
Bringing back the bonuses: Deutsche Bank chief executive hopes 2016 a one-off year for annual sweetener slashing February 2, 2017 Deutsche Bank's boss has his fingers crossed it can offer staff a better bonus deal this year, after the bank was forced to slash annual sweeteners significantly for 2016. When grilled on bonuses at a press conference for Deutsche Bank's annual results, John Cryan said: "We hope to resume normal service in 2017." The bank had a turbulent [...]
Deutsche Bank more than €1bn in the red for 2016 – but it’s better than last year February 2, 2017 Deutsche Bank has racked up losses of more than €1bn after a difficult 2016, but still improved significantly on the year before. The figures The struggling German banking giant reported a net loss of €1.4bn (£1.2bn) for 2016, although that is a €5.4bn improvement on 2015's €6.8bn loss. The bank also recorded net losses of €1.9bn in its fourth quarter, again [...]
Mortgage approvals hit a nine-month high in December January 31, 2017 The Bank of England's mortgage borrowing hit a nine-month high in December as the housing market recovered from the lull it experienced in the months after the Brexit vote. At 67,898, the number of mortgage approvals for house purchases increased 10.7 per cent from the low (61,335) it hit in August. Read more: I can't help but [...]
US consumers feel a Trump bump as confidence rises to 12-year high January 27, 2017 US consumers have greeted the arrival of Donald Trump as President with glee, as confidence soared in January to its highest level in 12 years, according to a closely watched survey. Optimism for the prospects of the world’s largest economy has risen by nine per cent year on year, according to the survey by the [...]
Mortgage lending hit a nine-month high in December January 26, 2017 Mortgage approvals hit a nine-month high in December, and overall in 2016, gross mortgage lending increased 12 per cent. Figures from the British Bankers Association show that gross mortgage borrowing increased by 3.6 per cent year-on-year in December, reaching £12.6bn, with remortgaging approvals jumping 30 per cent to their highest level since October 2008. Read more: Restaurateur [...]