City news: Santander, British Steel, WHSmith and Yorkshire Building Society
SANTANDER is braced for slower UK economic growth this year after annual profits were hit by a weaker pound.
Santander's annual profits were hit by a weaker pound
The Spanish bank’s earnings in Britain were down 14.7 per cent to £1.43billion. Excluding currency movements the drop was 4 per cent.
Its 123 account attracted 483,000 customers, down from 1 million the previous year, as it set aside £114million for PPI misselling.
Santander UK boss Nathan Bostock said: “We expect to see a more challenging macro environment in 2017.”
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British Steel was sold by India's Tata to investment fund Greybull for £1
Steel forges ahead now
British Steel is on course to annual profit as its turnaround continues seven months after being sold by India’s Tata to investment fund Greybull for £1.
The rebranded business, which employs 4,800 and is centred on the Scunthorpe steelworks, ended the third quarter in the black.
It pointed to big contract wins with long-term and new customers, including supplying for the construction of Hinkley Point nuclear power stations and rails for Italian and Algerian rail networks.
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WHSmith expects higher profits than what was forecast by analysts
WHSmith taking off
An increased appetite for takeaway food from its airport shops and the spoof Famous Five books helped WHSmith in its 225th year.
The retailer expects higher profit than the £136million forecast by analysts after lifting sales at stores open for at least a year by 1 per cent in the 21 weeks to January 21.
Like-for-like travel revenue increased 5 per cent after a jump in airline passengers over the festive period.
The adult colouring book craze gave way to demand for titles such as Five on Brexit Island. Shares rose 104p to 1584p.
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Yorkshire Building Society will put 440 jobs at risk as it will close down 48 branches this summer
Yorkshire cutbacks
Yorkshire Building Society is to close 48 branches and scrap the Norwich & Peterborough brand, putting 440 jobs at risk, this summer.
Britain’s second biggest building society, which has 3.3 million customers, said the changes reflect “desire among customers to transact digitally rather than on the high street”.
It will maintain 260 branches and is “fully committed to providing a face-to-face service”.
Chief executive Mike Regnier said: “Continuing to provide this service and extend it to new customers would require a significant increase in investment.”