ProfessionalServices

London Stock Exchange Group smashes expectations with strong growth and bold 2025 outlook

2025-06-30 11:28:12

London Stock Exchange Group (LSEG) has unveiled a robust set of financial results for 2024, surpassing market expectations and cementing its status as a leader in global financial data and analytics. Total income, excluding recoveries, saw a significant increase of 7.7% in 2024, with growth spread across various divisions, as reported by City AM. Notably, income from the firm's flagship data business rose by 4.5%. Additionally, the FTSE Russell arm posted a 10.9% gain, risk intelligence jumped by 11.3%, and capital markets experienced a substantial surge of 17.8%. LSEG also reported a 9.1% rise in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA), alongside £2.2bn in equity free cash flow. David Schwimmer, Chief Executive, highlighted the firm's focus on product innovation, stating: "We have delivered on our strategy in 2024, with strong performance across the group, an exceptional year for tradeweb, and significant advancements in our Microsoft partnership." He added, "Our model continues to drive consistent growth and improved profitability." A key milestone in LSEG's strategic partnership with Microsoft was reached, as their first co-developed products are now live, with a strong pipeline of projects in the works for 2025. The firm also bolstered its portfolio by increasing its stake in the London Clearing House (LCH) group by 11.6%, taking ownership to 94.2%. Furthermore, it divested its 4.92% stake in Euroclear. Despite its shift towards data and analytics, the London Stock Exchange Group (LSEG) has been under scrutiny due to the diminishing role of the flagship London Stock Exchange, which now accounts for a mere three per cent of group revenue. The company has attempted to address these concerns by advocating reforms to bolster London's status as a financial centre. Looking forward, LSEG predicts a minimum of 6.5 per cent organic growth in total income for 2025, while anticipating £2.4bn in equity cash flow.

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Banks given boost after 'positive outlook' on borrowing for UK households in 2025

2025-06-21 06:09:25

Banks have received a positive outlook as new data forecasts an increase in borrowing growth throughout 2025. Following the Bank of England's decision to cut interest rates three times in the past six months, research from EY Item Club predicts that total UK bank lending will rise to 3.7 per cent this year, up from 2.3 per cent in 2024. The latest EY Item Club Outlook for Financial Services anticipates that mortgage lending growth will double to 3.1 per cent this year, following a stagnant year in 2023 where growth was at zero per cent before rising to 1.5 per cent in 2024, as reported by City AM. Due to rising house prices and consistently high mortgage rates, mortgage lending growth is expected to stabilise over time, with growth forecasts at 3.2 per cent for 2026 and 3.6 per cent for 2027. Dan Cooper, EY UK’s Head of Banking and Capital Markets, commented: "Looking to the year ahead, the increasingly positive outlook for lending and the prospect of relatively low default rates is welcome news for UK banks and their customers." While acknowledging that the growth rates are still "way off record-highs of past years," Cooper suggested that the forecasts should "provide a boost to banks’ balance sheets and some breathing space". The Big Four Banks in Britain are all set to post annual results, with Barclays and Natwest having reported last week and both exceeding analysts’ profit expectations. HSBC will announce its annual results on Wednesday, followed by Lloyds on Thursday. However, it was noted that ‘Optimism must remain measured’ Martina Keane, EY’s UK and Ireland financial services leader, has commented on the strengthening economic recovery in the UK: "The UK’s gradual economic recovery is strengthening confidence and translating into more appetite to borrow from UK banks." She further speculated about the potential impact of future interest rate cuts, stating, "Looking to the year ahead, if interest rates are cut further as expected, borrowing costs should fall, the capacity for household spending will grow, and stronger levels of mortgage borrowing should return after two years of little-to-no growth." However, Keane also cautioned that "optimism must remain measured" due to potential tax increases and geopolitical tensions, which she believes pose a "very real downside risk to market confidence and the overall outlook for growth". The EY Item Club has revised its bank-to-business forecast downwards, attributing this to impending tax changes, tighter financial conditions, and global trade uncertainty. Expectations for business borrowing growth now stand at 4.5 per cent, down from the 5.6 per cent projected in November. Despite this, the figure would still represent an increase from 2024, when bank lending to UK businesses grew by 2.9 per cent.

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Rachel Reeves faces tough decisions as UK borrowing soars, tax hikes and spending cuts loom

2025-07-06 18:59:59

Economists have cautioned that Chancellor Rachel Reeves may need to increase taxes or reduce spending in March, following the latest update on public finances. The Office for National Statistics (ONS) revealed that tax receipts in January fell below expectations due to the UK economy's sluggish performance, as reported by City AM. This resulted in borrowing reaching £118.2bn for the financial year to date, nearly £13bn more than the Office for Budget Responsibility (OBR) predicted in October. This places borrowing at its fourth highest level on record at this stage of the year, highlighting the challenges facing the Chancellor as she attempts to stabilise the public finances. "The UK fiscal position remains a worry," stated Dennis Tatarkov, senior economist at KPMG UK. "If the chancellor remains committed to her fiscal targets, then the Spring Statement may need to contain more tax and spending changes," he added. Reeves had left a buffer of just under £10bn to meet her key fiscal target – ensuring day-to-day spending is funded by tax receipts. However, economists believe this headroom has disappeared due to slow growth and increased borrowing costs. "It appears that all the Chancellor's headroom has gone," said Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics. The OBR's final forecast will only be released alongside the Chancellor's spring statement, but Bloomberg reported that an early draft of the forecast suggests she will be in breach of her rules. The government has consistently stated that the fiscal rules are "non-negotiable," implying that Reeves will have to either increase taxes or plan for future spending cuts in March. The government is also facing increasing demands to raise defence spending to 2.5 per cent of GDP by 2030, up from the current 2.3 per cent. This would equate to an annual cost of around £6bn. Jordan-Doak of Pantheon predicts that the Chancellor will outline stricter public spending plans beyond 2025, but will likely need to raise taxes later in the year due to increased defence spending requirements. "We think the Chancellor will have to follow up spending curbs announced next month with tax increases in the Autumn Budget," said Jordan-Doak.

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Bank of England Governor Andrew Bailey committed to cash and take on AI

2025-07-07 21:17:07

The Bank of England is still committed to cash which continues to be used as an important budgeting tool, particularly for low income families, says its Governor Andrew Bailey. Mr Bailey said the central bank is also experimenting, like many organisations, in the use of artificial intelligence (AI). A decade ago cash was used in around 50% of transactions, but is now just over 10%. However, regulator the Financial Conduct Authority (FCA) says that more than one million people are excluded from digital banking because they don’t have bank accounts. The FCA also estimates that around two million use cash for the majority of their purchases. Mr Bailey said: “We can observe that the usage of cash has declined. However, when we ask people if they still want to have cash the answer comes back clearly yes, and I can understand why. We feel more comfortable if we have something in our pocket which we know we can use in case as it were. “There is also a section of the population, particularly those on low incomes, that use it as a budgeting tool. So, our view is very clear at the Bank of England, which is that we will supply cash as long as people want it, and the evidence is that they do want it. “So, we are going to go on providing cash. However, the paradox is this, while usage is declining, when I look at the amount on our balance sheet, which is the amount in issue, it hasn’t gone down at all.” On the central bank’s use of artificial intelligence, Mr Bailey said: “We are experimenting in how we can put it to work in sort of the analysis of our analytical functions. “One of the things I would say about it at the moment, and this will change no doubt, it’s really what I call a one step ahead forecasting. If you give it a world of information it will tell you the next step, but our world of forecasting is much more structural, so we haven’t found yet that AI can really take that sort of thing on, but it will develop no doubt.” The governor said he also uses AI to help summarise speeches. He added: “When I write speeches they are always too long. I don’t use it (AI) to write speeches, but it is quite a good summarising tool actually... and saves me a load of angst having to sit down for a few hours having to shorten one of my speeches.” The Bank uses AI platform Copilot. Latest official figures show weak productivity in both the public and private sectors. Mr Bailey said: Pre-Covid to today, the public sector (productivity) and the health part of it. I am looking at it quite hard as it is important, but the question for me is how much of that is actual and how much is the measurement and I don’t know, but I suspect both is the answer, However, I think it is a very important question.” On home ownership he said: “We have got an ageing population and therefore more people owning their houses outright.

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Banking giant Santander reports record profit, plans massive shareholder returns

2025-06-17 15:57:37

Santander, the Spanish banking behemoth, has today unveiled impressive figures for 2024, driven by increased income from its retail banking sector and reduced costs. The group posted a profit of €12.5bn (£10.4bn), a 14 per cent increase, and an eight per cent revenue growth to €62.2bn, as reported by City AM. The bank's return on tangible equity, a crucial indicator of banking profitability, climbed from 15.1 per cent to 16.3 per cent over the year. Santander reported expansion across the board, with customer numbers swelling by eight million to a total of 173m. Both net interest income and net fee income grew by eight per cent. Despite a slight rise in its cost base, with operating expenses growing by two per cent over the year, this was counterbalanced by higher income. Consequently, the lender's overall efficiency ratio significantly improved to a 15-year record, dropping 2.3 percentage points to 41.8 per cent. Santander attributed this performance to the group's "ongoing transformation...with the replacement of legacy technology with shared global technology platforms, such as Santander’s cloud-based core banking platform Gravity, which has helped the bank achieve savings of €452m since December 2022." Based on these better-than-expected results, the bank announced plans to return €10bn of additional capital to shareholders through share buybacks over the next two years, in addition to its regular dividends. Banco Santander's Executive Chair Ana Botín has announced a trifecta of record-setting performances for the financial institution: "We have announced record results for the third consecutive year as we continue to grow revenue, profitability, and returns." She highlighted the bank’s technological edge as a crucial driver for its success, stating, "As one of the largest retail and consumer banks in the world, we have the scale to build our own technology platforms, making it possible to offer customers the best products and services while constantly reducing the cost-to-serve." Botín emphasised this strategic advantage is evident in their progressive operating leverage improvement: "This is a key competitive advantage and is reflected in our results through continuous improvement in operating leverage. Our track record shows that in a challenging market we outperform peers and in 2025 we expect to grow our bottom line and profitability –with revenue stable and costs falling." Her confidence in Banco Santander's capacity for growth remained undiminished: "And we are only scratching the surface of our potential. As we said at our Investor Day, Santander is in a new era of value creation, and we are confident that our scale, diversification and the impact of our transformation will enable us to increase profitability again in 2025."

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HSBC stock price falls following Deutsche Bank downgrade and restructuring plans

2025-06-18 00:10:00

HSBC's share price has experienced a decline of over two per cent this morning following a downgrade by Deutsche Bank analysts from 'Buy' to 'Hold'. The FTSE 100 bank was assigned a target share price of £9.10 by Deutsche Bank, in contrast to its current share price of £8.27, as reported by City AM. "After a substantial increase in share price, the value, in our view, is no longer there," commented Deutsche Bank analyst Robert Noble. Over the past six months, HSBC's stock price has surged by 33 per cent as the bank committed to achieving $3bn (£2.4bn) in cost savings and restructuring into four new divisions, divided between East and West. Last week, it emerged that the bank is considering scaling down parts of its investment banking operations across the UK, Europe, and North America. Despite the positive trend in the bank's stock price over the last half-year, analysts are sceptical about further significant gains. "HSBC doesn’t have to do a lot to maintain a healthy mid-teens ROTE [return on tangible equity] after many years of restructuring." Noble further stated. "We expect any incremental restructuring will be relatively small and aimed at maintaining ROTE levels against a falling rate environment across a global cost base." In the meantime, RBC analyst Benjamin Toms has described forecasting HSBC’s financials as "tricky" due to the ongoing cost-cutting and restructuring efforts. RBC maintains a target price of £9 for the FTSE 100 bank, with a potential high scenario of £9.50 and a low scenario of £6. Toms has suggested that current analysts' estimates for the bank’s revenue and capital expenditure are overly optimistic, predicting 2025 revenue to be 1.2 per cent below consensus at $64.2bn (£52.1bn). Toms stated: "Our detailed analysis suggests headwinds from business disposals, capital markets exits, interest rate movement net of hedging are only partially offset by loan growth and fee growth," As global interest rates have started to decline, RBC modelling indicates this will result in a $2.5bn (£2bn) reduction in HSBC’s revenues over the year.

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Lloyds Bank profits tumble 20% as it warns of 'immediate challenges' - but shares climb

2025-06-23 16:41:44

Shares of Lloyds Banking Group surged three per cent at market opening, notwithstanding a diminution in profit after the banking institution earmarked extra provisions for possible motor finance reimbursements. The FTSE 100 bank announced a pre-tax profit decline of 20 per cent to £6bn, a decrease from £7.5bn recorded in 2023, as reported by City AM. Analyst predictions had set the bank's profit before tax at an anticipated 13 per cent fall to £6.5bn. Furthermore, pre-tax profit significantly dipped to £824m in the fourth quarter, marking a steep 55 per cent fall from the £1.8bn accrued in the preceding third quarter. Additional provisions totalling £700m have been allocated by Lloyds pertaining to the motor finance scandal, atop the £450m set aside back in February 2024. This new allocation surpasses the amounts reserved by rival banks; with Santander having allocated £295m in November 2024, and Barclays setting aside £90m last week for potential settlements. The provisions resultant from motor finance commission has affected the bank’s return on tangible equity, initially at 14 per cent but reduced to 12.3 per cent post the provision charge. John Moore, senior investment manager at RBC Brewin Dolphin stated: "Lloyds is rounding off the major UK banks' results with lower numbers than the market expected. "Among its peers, Lloyds is the most exposed to the UK, and mortgage lending in particular – motor finance provisions, falling interest rates, and a sluggish housing market were always going to be immediate challenges." Yet, Moore observed that despite these factors, Lloyds still maintains a "good position." Discussing the future for Lloyds Bank, a valid question emerges: "But, as ever with Lloyds, the reasonable question to ask is: what's next? The big opportunity is in what the bank refers to as 'other' income, which now accounts for £5.6 billion." Richard Hunter, head of markets at interactive investor, remarked on the challenges faced by Lloyds, saying, "Lloyds finds itself in the midst of attacks from several angles, but all things considered is standing up defiantly to the challenges." Hunter also highlighted the positive developments within the bank: "Overall, a positive direction of travel towards a more streamlined and digital business, underpinned by a healthy financial position, are elements of proof that the bank remains on track." He noted the impact these factors have had on investor sentiment, "Despite the headwinds, the shares have been positively rerated of late and have added 47% over the last year, as compared to a hike of 13% for the wider FTSE100." In an assertive move despite a decrease in income, Lloyds has confirmed it will initiate a share buyback programme valued at up to £1.7bn. Additionally, the bank declared an increased total ordinary dividend of 3.17 pence per share, signifying a 15% rise from the previous year. Gary Greenwood from Shore Capital commented on the buyback announcement, indicating confidence within the bank's management: "Given the shares are up 50% over the past year and there is no underlying upgrade to guidance, we would expect a fairly muted share price reaction today." In other financial metrics, Lloyds reported its net interest margin had contracted by 16 basis points over the last year to 2.95%, in line with its full-year expectations. Earnings per share have seen a decline, settling at 6.3p—a drop of 1.3p since 2023. Against this backdrop, group chief executive Charlie Nunn expressed a positive outlook on the year's performance: "In 2024 we continued to Help Britain Prosper, delivering for our customers, shareholders and wider stakeholders." Moreover, Nunn provided an optimistic view on the future, stating, "Looking forward, we are building momentum as we enhance our franchise and deliver differentiated outcomes for our customers." He elaborated on the strategic direction, saying, "Our strategy is transforming our capabilities, enabling us to deepen relationships with our customers, grow in high value areas and drive cross-Group collaboration."

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Barclays shares could be set for 18% rise after profit beat, experts say

2025-06-17 13:32:05

Analysts have reaffirmed their 'Buy' rating on shares of Barclays after the bank surpassed expectations with its recent results. The FTSE 100 lender reported a pre-tax profit of £8.1bn in 2024, exceeding the estimated £8.07bn, as reported by City AM. "We believe strong capital generation should support a higher valuation and plans to return more than £10bn over 2024-26 seem conservative," stated Peel Hunt analysts Robert Sage, Stephen Payne and Stuart Duncan. They further commented: "The six per cent rise in income, 24 per cent increase in profit before tax and double-digit return on tangible equity confirm that financial performance is stepping up. "The company guided for structural hedge income to increase a further £1bn in 2025, and market conditions for the investment bank currently appear supportive, especially in the US." Despite initial guidance remaining unchanged, they suggested the 12 per cent return on tangible equity goal seemed "increasingly realistic (if not conservative)." Barclays shares initially dropped by as much as five per cent following the results, but quickly rebounded as analysts labelled the dip a "temporary glitch." Peel Hunt subsequently increased its target price for the bank by 11.8 per cent to 359p, with the bank's shares trading above 300p on Tuesday morning. Barclays also announced a share buyback of up to £1bn during its annual results, expected to commence in the first quarter of 2025. According to analysts, "Share buybacks remain highly accretive not only to Barclays earnings per share but also to its tangible net asset value, to a significantly greater degree than Lloyds and Natwest, and in our view the continued prioritisation of buybacks is beneficial for equity holders." They also noted that Barclays has a "greater focus on buybacks than its two peers". The acquisition of Tesco Bank's retail banking business in November 2024 contributed to an increase in fourth-quarter income, with the lender experiencing a £0.6bn gain on the first day. Peel Hunt analysts commented: "Barclays never has been an expensive stock."

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People on the move: North East appointments and promotions of the week

2025-07-03 00:19:31

Newcastle accountancy and business advisory firm UNW has strengthened its corporate finance team with the appointment of Naomi Townsend as senior manager. Ms Townsend studied Law at the University of Leeds before joining KPMG Newcastle in 2014, where she gained experience across audit and corporate finance over seven years. In 2021, she joined mid-market private equity firm LDC as investment manager and she was named ‘Young Financier of the Year’ at the North East Young Professionals Awards in 2022. She said: “I’ve always admired UNW’s reputation – not just for the quality of its work but for how it supports its people. Having worked alongside the team in various capacities over the years, I could see first hand how much trust clients place in them, and I’m excited to now be part of that. “UNW has built a fantastic corporate finance team, and I’m looking forward to working with ambitious businesses across the region, helping them navigate their growth opportunities. I’m also really pleased to be working with Chris Wilson and Nick Broadhead again, having previously worked together at KPMG. This is an exciting new chapter for me, and I can’t wait to get started.” Her appointment follows Jack McCullagh’s move to the corporate finance team as an executive in January after previously working in UNW’s audit department. Chris Wilson, partner and head of corporate finance at UNW, said: “We’re thrilled to welcome both Naomi and Jack to the team. Naomi’s extensive experience and proven track record in dealmaking – as both an advisor and an investor – will offer a unique perspective and provide immediate value to our clients. At UNW, we’ve consistently stated that we want to provide the highest quality advice to our clients and having the best and most experienced people is a big part of that strategy. “We are also committed to creating opportunities for talent to develop and progress. Jack’s recent move from audit to corporate finance is a great example of how the firm invests in its people and offers varied career paths. With Naomi and Jack on board, our team is stronger than ever as we head into another exciting and busy year.” Newton Aycliffe offshore specialist Tekmar Group plc has appointed Marc Bell, current managing director of Tekmar Energy, as chief operating officer. Mr Bell has almost 25 years of experience of business leadership experience and has spent the past 15 years in the global energy sector, holding key roles in offshore wind and subsea industries. Before joining Tekmar, Mr Bell held senior roles including global operations director for JDR Cables, head of offshore wind UKI for Siemens Gamesa, and global manufacturing manager for Technip Umbilicals. In his new role he will take on the leadership of Pipeshield in addition to his responsibilities with Tekmar Energy. Richard Turner, CEO of Tekmar Group, said: “We are delighted to appoint Marc Bell into the role of chief operating officer of Tekmar, at a pivotal point in the company’s growth journey. Marc has a wealth of experience in the global energy sector, and in his current role as managing director of Tekmar Energy, he has been instrumental in achieving a number of key strategic milestones for the group and building it into the frontrunner for cable protection technology today. “This appointment marks another step forward in the execution of our three-year plan to create a step change in profit performance and drive sustainable value creation at Tekmar. We look forward to working with Marc in his new role to continue to execute on our growth strategy and deliver value for our shareholders.” Law firm for businesses, Muckle LLP , has appointed Joe Millar as a solicitor in its real estate team. Mr Millar brings experience in residential and commercial property from his time at a major UK law firm in Leeds. He will now will play a key role in strengthening Muckle’s real estate services across the North East and Teesside. He said: “I’ve always been really interested in property—it was one of the first areas I got into after finishing my LPC masters degree at Leeds Beckett. I kept building on that experience while working as a chartered legal executive before finally qualifying as a solicitor last year. I joined Muckle because I was ready for a change. The firm’s wide range of high-quality work and its strong commitment to supporting and valuing its people were what drew me here.” “The team at Muckle is really approachable and knowledgeable, and there’s always a good atmosphere in the office. It feels good to be back in the North East, serving clients in a region I know and love.” Jonathan Combe, partner and head of real estate, said: “We’re delighted to start the new year by welcoming Joe to the team. His background in property and knowledge of the area will be invaluable in supporting clients across both the public and private sectors. We’re always exploring ways to develop and enhance the services we can provide. We’re excited to see the positive impact Joe will have in driving our real estate practice forward.” The Alnwick Garden has appointed a new head gardener who was personally headhunted by the Duchess of Northumberland. Mikey Leach was approached and interviewed for the role by the Duchess, Jane Percy, who came across his work after looking for the right person to fill the role. His career caught her attention and includes working in private gardens designed by Tom Stuart-Smith to working alongside renowned gardener Monty Don at Longmeadow Gardens. Mr Leach, who oversees a team of 11 gardeners, said:“In my new role as head gardener, I am passionate about building on The Garden’s rich history while exploring innovative approaches to horticulture, ensuring the venue continues to inspire and engage visitors for years to come. I find real satisfaction in knowing that my work creates spaces where people can connect with the natural world, experience its beauty, and take a moment to pause and reflect. It’s this connection between plants, people, and places that makes my role so meaningful.” Azets has appointed Jodie Barwick-Bell as a private client tax partner in the North East, advising families with complex tax affairs. Ms Barwick-Bell is a highly experienced private client tax adviser and has a specialism in family offices. Her career includes Evelyn Partners, Deloitte and KPMG, as well as running family offices. She said: “There is clear demand for strategic advice from multigenerational families with complex tax affairs in the North East, with Azets well-positioned to provide a range of services under one roof and a holistic, joined-up strategy. The North East region has nearly 193,000 companies – many are owned and run by business owners who have not yet agreed a succession plan. “Given the recently announced IHT changes which take effect from April 2026, this year is a particularly important time for business owners to obtain tax advice and plan for the future.” Brian Laidlaw, Azets’ head of North East, said: “This is another exciting appointment for us at Azets in the North East – we have spoken about the ongoing drive to recruit senior hires and support regional businesses and their owners through the full growth lifecycle. Jodie brings considerable personal tax experience in advising private clients with varied business and investment interests, supporting them with tax, investment structuring, succession planning, trusts and philanthropy, dovetailing with our other specialist service lines.” SPG Resourcing has appointed Sham Chohan to lead the growth of its European cyber security recruitment division. With an extensive background in technology recruitment, Mr Chohan brings expertise in the technology and security sectors. His appointment signals SPG Resourcing’s commitment to addressing the increasing demand for cybersecurity professionals across Europe. He said: “The cyber security landscape is evolving rapidly, and organisations need access to the right talent to stay ahead of emerging threats. SPG Resourcing has built a strong reputation in technology recruitment. I’m excited to lead the cyber security division, further expanding our capabilities and connecting businesses with the expertise they need.”

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Bank of England set to cut interest rates as UK economy stumbles

2025-06-13 19:49:57

Market analysts anticipate a Bank of England interest rate cut this Thursday, due to growing concerns about the UK's faltering economy which are expected to override ongoing inflation worries. The Monetary Policy Committee (MPC) is set to endorse a third rate decrease, potentially taking the benchmark Bank Rate down to 4.50 percent, as reported by City AM. However, a note of caution regarding the rest of the year is likely to be indicated by the rate-setters, owing to persistent economic price pressures. "Gradualism, we think, will remain front and centre for the MPC given two-sided risks to the inflation outlook," commented Sanjay Raja, the chief UK economist at Deutsche Bank. Projections alongside the decision are predicted to project diminished growth and elevated unemployment compared with the Bank's previous estimates in November. At that point, growth was forecast at 1.5 percent for 2025, but experts now believe this might settle closer to one percent due to minimal economic expansion post the last summer's general election. The downturn has been attributed partially to the government's discouraging rhetoric and budgetary tax increases. Trends indicate that consumer and business confidence remains lackluster as the new year commences, likely putting a cap on short-term growth prospects. Although anticipations suggest a softer economic landscape, revised inflation forecasts are still slated to be adjusted upwards, particularly in the near term. Since November, energy prices have risen and the pound has weakened, increasing the cost of imports. Furthermore, surveys indicate that companies are passing on more of the costs from the national insurance increase than Bank officials had anticipated. The most recent data shows inflation at 2.5 per cent in December, lower than expected, but many economists predict inflation could climb to as high as 3.3 per cent by spring. The Bank's earlier forecasts suggested inflation would peak around 2.8 per cent. The challenge for the Bank will be communicating the decision to cut rates while revising their inflation estimates upwards. However, rate-setters are likely to stress that weaker growth will impact inflation in the long term. "The weaker growth outlook will probably translate into an inflation forecast that is again below the inflation target," said Matt Swannell, chief economic adviser to the EY Item Club. Barclays' economists stated that the new forecasts would "exacerbate the divergence between a near-term overshoot and medium-term undershoot of inflation. Markets are pricing in around two or three cuts this year, although some economists expect the Bank to cut rates more aggressively."

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FTSE 250 firm Assura turns down fourth takeover offer amid strategic growth plans

2025-06-27 03:27:11

Assura, the FTSE 250 healthcare real estate investment trust, has turned down a takeover bid worth over £1.5m – marking the fourth such rejection in the past six months. The Altrincham-based firm made headlines last week when it was revealed that private equity giant KKR and a major universities pension scheme had approached it, as reported by City AM. However, Assura's board has now confirmed the rejection of the latest proposal, valued at £1.562bn. In a statement, KKR disclosed that this recent approach followed three other written proposals that were also rejected by the company within the last six months. Both parties now have until 5pm on 14 March to declare their intentions regarding a potential offer. A statement from KKR read: "KKR believes that the terms of the latest proposal offer a highly attractive opportunity for Assura shareholders to realise their investment in cash at a significant premium to prevailing market prices." It added: "KKR acknowledges the rule 2.8 announcement dated 17 February, 2025, from USS Investment Management Limited (as agent for and on behalf of Universities Superannuation Scheme Limited (acting in its capacity as sole corporate trustee of the Universities Superannuation Scheme)) following the rejection from the board of the latest proposal." KKR is currently contemplating whether there is any merit in continuing to engage with the board. "There can be no certainty that any firm offer for the company will be made. A further announcement will be made as and when appropriate." Assura's shares saw a surge of over four per cent following the disclosure of the potential offer before Friday's trading session concluded. The increase, reaching 39p per share, resulted in Assura closing the day with a market capitalisation exceeding £1.2bn. Despite this uptick, Assura’s shares have been on a downward trajectory since peaking at nearly 49p in January 2024. Prior to the pandemic, its shares were trading above 80p. In May of the previous year, Assura and USS agreed to invest £250m in a 20:80 joint venture to bolster investment in essential NHS infrastructure. In a statement released to the London Stock Exchange on Friday, Assura stated: "The board is currently reviewing the proposal with its advisers. "A further announcement will be made as appropriate. There can be no certainty that any offer will be made, nor as to the terms of any such offer. Shareholders are advised to take no action. "The board remains confident in the long-term prospects of the company and believes that Assura is strongly positioned to create value for shareholders." In a trading update issued at the beginning of January, Assura’s CEO Jonathan Murphy, said: "We have maintained momentum in the third quarter continuing to deliver against our strategic objectives." In its half-year results, Assura revealed a pre-tax profit of £77.1m for the six months to September 2024, a significant improvement from a loss of £17.8m in the same period in 2023.

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BNP Paribas Personal Finance launches new UK head office

2025-06-14 11:17:55

A financial services firm has opened a new UK head office in Solihull. BNP Paribas Personal Finance has moved the team to a new home in the AIR complex in the town centre following a £3 million investment. The 25,000 sq ft office is now home to 800 staff for the organisation's UK subsidiary while sister firm, vehicle leasing outfit Arval, also has a regional office at the base. BNP Paribas Personal Finance UK launched in 1973 as Selfridges Finance and now supports more than four million customers in fields such as retail finance, motor finance and personal loans. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. The company was previously based in Chadwick House, at Blenheim Court, also in Solihull town centre. Stephen Hunt, chief executive of BNP Paribas Personal Finance UK, said: "It's incredibly important that we invest in our colleagues and our work environment to enable us to maintain our position in what is a very competitive market. "We're incredibly excited about this move and to be staying in the West Midlands. "As the region with the fastest-growing tech sector in the UK, there is no better place for our team to be based to drive forward our business." Deputy chief executive Ricardo Mantovani added: "Over the last 50 years, our organisation has gone from strength to strength and, while we can attribute much of this success to the brilliant people who have worked during that time, it is also a direct result of being located in the West Midlands.

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Chase UK beats Monzo and Starling to be named best bank in Britain for first time

2025-06-25 06:17:09

An Ipsos poll has placed Chase UK as Britain's top-rated consumer bank, overtaking digital banking front-runners Monzo and Starling for the first time. Kuba Fast, CEO of Chase UK commented: "These results are a testament to the fantastic people we have and our commitment to putting customers at the heart of everything we do." Launched by JP Morgan in 2021, Chase UK boasts an 81 percent overall customer satisfaction score, as reported by City AM. Since the inception of the Ipsos survey in 2018, digital banks have consistently been at the forefront. This triumph marks the inaugural year in which Chase UK outperformed Monzo and Starling—firms that have traditionally secured the leading approval ratings. Addressing their digital edge, a Starling spokesperson credited their success to offering customers "a really useful banking app with a great user experience and 24/7 friendly customer service", distinguishing their approach from high street counterparts. In the realm of online and mobile banking services, Chase UK joined forces at the upper tier alongside Monzo, which prevailed with an 86 percent approval rate. Meanwhile, Nationwide upheld its prime position for in-branch experiences, closely followed by Metro Bank, echoing last year’s standings. At the bottom of the scale, the Royal Bank of Scotland (RBS) saw an overall ranking with merely 46 percent customer satisfaction. Furthermore, it trailed behind in terms of in-branch services as well. Subsequent to featuring at the bottom in 12 of the past 14 surveys conducted by Ipsos, RBS, now under NatWest Group operations, closed down 18 branches across Scotland in September 2024 amid dwindling footfall. The survey questioned current account holders about the likelihood of them recommending their bank's services.

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Legal & General shares soar as UK insurer sells US life business for £1.8bn

2025-07-10 18:19:13

Shares in Legal & General (L&G) surged following the announcement of its US insurance business's sale to Japanese company Meiji Yasuda for £1.8bn. As a result of the transaction, Meiji Yasuda will acquire L&G’s US protection business and hold a 20% economic interest in its pension risk transfer (PRT) business, as reported by City AM. The FTSE 100 firm will retain 80% of existing and new PRT through reinsurance arrangements, with PRT involving the purchase of pension liabilities from corporate pension schemes. L&G stated that the £1.8bn valuation offers a "compelling multiple" to projected 2024 earnings. The protection business is forecasted to yield operating profits of approximately $90m in 2024, while its expected net assets are around $850m. Of the proceeds, £400m will be reinvested in the PRT business, while £1bn will be returned to shareholders. "This would be incremental to the group’s existing distribution policy. L&G therefore expects to return the equivalent of c. 40 per cent of its market cap to shareholders over 2025-2027 through a combination of dividends and buybacks," it said. The remaining £400m will be redeployed in accordance with the strategy announced last summer. The deal is anticipated to be finalised towards the end of 2025. Shares in the firm rose by over eight per cent in early trade. "This is a transformational deal by the new CEO Antonio Simoes," commented Abid Hussain, an analyst at Panmure Liberum. Meiji Yasuda is poised to take a stake of about five per cent in L&G, with plans for the two companies to join forces on Pension Risk Transfer (PRT) and global private assets. "This strategic partnership brings together two highly complementary global businesses, with a shared ambition for growth, and will enable us to capitalise on the large market opportunities in US PRT while driving scale and profitability in global asset management," commented CEO Simões. The new leader at L&G, Simões, who succeeded long-time chief Nigel Wilson in January last year, is steering the firm towards a more focused business strategy.

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Rathbones ahead of expectations as Investec merger progresses

2025-06-17 03:23:14

Rathbones, the wealth management firm, has reported an increase in operating income to £895.9m in 2024, surpassing analyst expectations as it continues its merger with Investec Wealth and Investment (IW&I). The company's pre-tax profit nearly doubled last year, rising from £57.6m to £99.6m, according to its full-year results, as reported by City AM. Underlying pre-tax profit also saw a significant increase, from £127.1m to £227.6m, exceeding the £224.7m forecast by analysts. However, funds under management reached £109.2bn, slightly below the anticipated £110.1bn. This marks the first full financial year since Rathbones' £839m merger with IW&I. Peel Hunt analyst Stuart Duncan commented on the merger, stating: "The Investec transaction gives the enlarged group scale, as well as a range of other strategic benefits to accompany the £60m of expected synergies." He also noted that Rathbones' shares were trading at around 10 times the group's expected earnings for next year, lower than similar stocks in the sector. Duncan added: "With a yield of over five per cent, we believe the shares provide lots of attraction in a sector that continues to offer long-term structural growth." In its guidance, Rathbones indicated it was making "good progress" towards achieving an underlying operating margin of 30 per cent from September 2026, three years after the IW&I acquisition. "2024 has been a very exciting year for the group as we began in earnest to bring Rathbones and IW&I together as one combined business committed to helping our clients achieve their longer-term financial goals," stated Paul Stockton, Chief Executive of Rathbones.

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Newcastle's Ryder Architecture hails strong performance in challenging times

2025-06-16 15:50:35

The Newcastle architecture business leading designs for the city centre’s East Pilgrim Street regeneration has hailed strong commercial performance despite the challenging economic environment. Ryder Architecture, which is based in Cooper Studios in Newcastle, is responsible for high profile schemes across the North East and beyond, with its work spread as far afield as Australia and Canada for clients in a diverse mix of sectors. Now Ryder has published accounts for the year ended April 2024, showing turnover rose 4.6% to £31.6m, with pre-tax profits increasing 60% to £2.43m. Operating profit rose 41% to £2.35m. Total comprehensive income was £3.2m, up from £1.3m, while total equity stood at £12.55m, up from £10.1m. Group staff numbers also rose from 319 to 325 during the year and the firm said that, overall, Ryder now employs 350 people across its UK and international locations, with offices in Newcastle, London, Liverpool, Glasgow, Manchester and Bristol. It also covers South East Asian nations from Hong Kong through a license agreement with Ryder (Asia) Limited, in Canada through Ryder Architecture (Canada) Inc and elsewhere internationally through an alliance community. Significant projects under way across the UK include major residential led regeneration projects in and around London, a new chain of hotels nationally, and the National Rehabilitation Centre for Nottingham University Hospitals NHS Trust. Closer to its Newcastle roots, Ryder is leading the design team on the regeneration of East Pilgrim Street, including the recently announced Pilgrim Place 1 and 2 buildings, the latest phase of the project involving Pilgrim’s Quarter, the new home for Stack in Worswick Chambers and a hotel in the former fire station. A report signed off by Ryder Architecture managing director Mark Thompson, said: “Our broad portfolio of sectors involves us working with a wide range of clients - private businesses, developers, construction contractors, national and local Government bodies. “The success of these sectors requires a strong economy, stable political climate and a positive investment and planning environment, all of which have been lacking in the UK throughout recent years although they appear to be stabilising since the general election in July 2024. “Commissions for the next 12 months remain strong across all sectors, although timing is a concern as clients assess the viability of projects within the context of ongoing uncertainty in the economy. We seek to manage and mitigate these risks through a diversified sector, client and geographical portfolio. “The level of future commissions are constantly monitored and classified against agreed profitability criteria and benchmarks to identify areas of potential risk. “Many of our projects were recognised with design awards last year and we were also crowned UK Architectural Practice of the Year in the prestigious Building awards 2024. We are focused on delivering an excellent client experience. We continue to be committed to all our established sectors while pursuing a number of overseas opportunities. Okana, our new built environment consultancy including a community of likeminded practices, continued to deliver with new commissions in North and South America, the Far East, Middle East and Australia.”

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Barclays smashes expectations as it reaps Tesco Bank takeover rewards

2025-07-08 21:06:08

Barclays has exceeded analyst expectations in its annual results report, following a robust year for its investment banking division and immediate benefits from its acquisition of Tesco Bank. The FTSE 100 bank posted a pretax profit of £1.7bn in the fourth quarter, surpassing the £1.62bn anticipated by analysts, as reported by City AM. For the entire year of 2024, the bank reported a profit of £8.1bn, exceeding the expected £8.07bn. This represents a 24 per cent increase from £6.6bn in 2023. The completion of the Tesco Bank’s retail banking business acquisition on November 1, 2024, contributed to a nine per cent overall rise in the group’s UK income. This primarily reflects the £0.6bn immediate gain from the takeover, which boosted the pre-tax profit of its UK division by 25 per cent over the past year. The acquisition involved the transfer of credit cards, unsecured personal loans, deposits, and the associated operating infrastructure to Barclays Bank. Barclays UK reported a pre-tax profit of £3.58bn for 2024, compared with £2.87bn in 2023. Barclays’ investment bank maintained its strong performance throughout the year, with its total income for 2024 reaching £11.85bn, surpassing the £11.7bn analyst estimate. Its investment banking division also saw a seven per cent year-on-year income growth after generating £4.5bn in fees and commission income. Income from these divisions rose 26 per cent compared to the previous year. Its net interest margin expanded by 46 basis points, compared to the same quarter last year, with its fourth quarter for 2024 hitting 3.53 per cent. Operating expenses for the group decreased by 1% year-over-year to £16.7 billion, which the bank attributed to being partially offset by inflation, investment spend, and business growth enabled by £1 billion in cost efficiency savings. Additionally, a share buyback of up to £1 billion was announced, expected to commence in the first quarter of 2025. Matt Britzman, senior equity analyst at Hargreaves Lansdown, commented: "Early price action for Barclays looks a little harsh after the group set a decent benchmark for the banking sector, closing the year with an impressive final quarter as both its UK and Investment Banking arms delivered." "In Investment Banking, Barclays didn’t disappoint, surpassing profit expectations and seeing growth in fixed income and equities that outpaced even the US giants," he added. Regarding the announced buy-back, Britzman stated that it taps into a "strong capital position" and there was "enough on offer to keep all markets happy". "The only minor downside was the lack of guidance upgrades, but overall, investors should be pleased with these results, the immediate price reaction likely a result of the strong run up coming into results," he said. Zoe Gillespie, investment manager at RBC Brewin Dolphin, commented: "Barclays has delivered another strong set of results". "The bank is seeing the benefits of its divisional spread and a coherent and focused long-term strategy," she added. The narrative around Barclays paints a picture of robust health, with the bank showing signals of sustained strength for some time to come, demonstrating a reassuring level of consistency not always associated with its past. Group chief executive C. S Venkatakrishnan commented: "In 2024 we met our financial targets, delivering for our customers and clients, with operational and financial performance improvement driven by disciplined execution of the three-year plan."

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Natwest narrowly beats profit expectations as it posts bump in consumer lending

2025-07-03 00:06:04

Natwest has marginally surpassed analysts' annual profit expectations, following a surge in its consumer lending. The FTSE 100 lender reported a pre-tax profit of £6.2bn, slightly above the £6.1bn predicted by analysts and marking a 0.3 per cent increase on 2023, as reported by City AM. Customer loans reached £368.5bn, a rise of £12.9bn, reflecting Natwest's acquisition of Metro Bank's mortgage portfolio. The bank saw a £3.2bn increase in retail banking loans, with £2.2bn relating to the portfolio acquisition. In Q4 alone, consumer lending rose by £4.8bn, which the bank attributed to growth within corporate and institutions and higher retail banking mortgage balances. Despite falling interest rates, Natwest managed to expand its net interest margin by one basis point to just over two per cent in 2024. Operating expenses rose by £330m in the final quarter, compared to the same period last year, which the bank said was due to the annual Bank Levy and property exit costs. The UK Government has also reduced its stake in NatWest Group to 6.98 per cent after selling nearly 80m shares. This is part of the Government's ongoing plan to gradually reduce its ownership in Natwest, which began after the 2008 Financial Crisis. The Government injected £45.5bn into the Royal Bank of Scotland, Natwest’s parent company, after it required a bailout. In November 2024, the Government sold £1bn worth of Natwest shares back to the bank, reducing its stake from 14.2 per cent to 11.4 per cent. Natwest has projected further profits, stating that it expects to generate a return on tangible equity of 15 to 16 per cent in 2025. The Big Four bank proposed a final dividend of 15.5p per share, bringing the total for the year to 21.5p, up 26 per cent from 2023. Gary Greenwood, Equity Analyst, commented: "The dividend policy will change with a 50 per cent payout ratio now targeted versus 40 per cent previously, which will drive a consensus dividend forecast upgrade. Buybacks will continue to be considered." He added: "The shares have had a very strong run over the past year and into these results so we would expect a neutral to slightly positive reaction this morning." Zoe Gillespie, RBC Brewin Dolphin’s investment manager, said: "Natwest is in fine fettle. The bank has beaten expectations, exceeding its own upgraded guidance for 2024, while the government has accelerated the reduction of its stake." She continued: "On this trajectory, Natwest could potentially return to full private ownership this year and, with that, new opportunities may open up to the bank." She concluded: "Natwest has built a solid foundation for its next era and, all things being equal, should be free of the distractions of the past." Paul Thwaite, chief executive, commenting on the annual results, said: "We have positive momentum behind us and a clear ambition to succeed with customers as we continue to build a simpler, more integrated and technology-driven bank that is capable of even greater impact. "As we enter a new, forward-looking chapter for Natwest Group, I am optimistic about the opportunities ahead of us to grow our business as a vital and trusted partner to our customers and the UK itself and, in doing so, create further value for our shareholders." The announcement comes in the wake of Nigel Farage revealing that he is considering private criminal proceedings against Natwest following the debanking controversy earlier this year, as initially reported by Sky News' Mark Kleinman. This follows the decision by the bank's subsidiary Coutts to close Farage's account, sparking debate over whether the closure was due to commercial or political reasons.

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Barclays and Natwest to axe climate targets from executive bonuses as US giants follow suit

2025-07-11 10:20:28

Banking behemoths Barclays and Natwest have decided to remove climate targets from their annual bonus schemes for top executives. This move is indicative of a broader trend in the corporate sector, severing the formal connection between climate and diversity goals and remuneration, as reported by City AM. Both banks will eliminate sustainability metrics as performance indicators from annual reward schemes, instead incorporating climate objectives into long-term share-based incentive plans. Barclays and Natwest argue that this approach better aligns with long-term climate aspirations. However, this can also be viewed as part of a larger overhaul of environmentally and socially conscious measures that many firms have integrated into their operations in recent years. The Net-Zero Banking Alliance (NZBA), established in 2021 by the UN Environment Programme finance initiative, has faced considerable scrutiny after six of America's largest banks withdrew. These included J.P. Morgan, Citigroup and Bank of America, accounting for a significant portion of assets under management. Donald Trump's inaugural act as US President was to sign an executive order on 20 January to terminate "radical and wasteful" DEI programmes in the US. Numerous American companies have either openly or subtly followed suit, with Deloitte phasing out its diversity objectives in the US and removing DEI-related content from its website. McDonalds, Target and Walmart have implemented similar actions in the past month. Barclays has previously included climate metrics in its annual bonus scheme for senior executives, but will now incorporate sustainability measures into its long-term incentive plan. According to the bank's annual report, these goals will be combined with customer and client metrics and will have a 25 per cent weighting. The report stated: "Progress towards these targets is expected to be volatile and non-linear and is best assessed over a multi-year period," It added: "The sustainability measures are included as part of a broader, renamed category of measures... includ[ing] financing the transition, reducing our financed emissions and achieving net zero operations, as well as supporting our communities." Meanwhile, Natwest will give sustainability metrics a 15 per cent weighting in its chief executive's performance share plan, up from 10 per cent of his bonus, according to The Times.

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Plus500 boosts shareholder returns with new $200m payout following revenue surge

2025-06-25 22:32:30

Plus500 has unveiled another series of shareholder rewards following a surge in new customers and an uptick in revenue. The fintech trading platform reported a six per cent year-on-year increase in revenue to $768.3m (£609.3m), bolstered by a similar rise in trading income, as reported by City AM. Interest income climbed by nine per cent, albeit representing a smaller portion of the company's earnings. The firm experienced a 30 per cent growth in new customer numbers over the year, with figures rising to 118,010 from 90,944. Attracting new clients has been a key priority for Plus500, which has made substantial investments in marketing to draw in new traders. "Our commitment to continued strategic investment has established the foundations for growth in future years," said David Zruia, the chief executive. Investments have also been channelled into 'customer retention technologies', ensuring that two-thirds of its revenue from over-the-counter products comes from clients who have been trading for more than three years. Active customer numbers increased by nine per cent to 254,138, while the average deposit per active customer rose to $12,000, up from $10,000 the previous year. Plus500's non-OTC operations, encompassing futures and share dealing, likewise saw robust expansion. Last year, these activities accounted for approximately 10 per cent of total revenue and 15 per cent of all new customers. Stuart Duncan, an analyst at Peel Hunt, commented: "The investment case remains based on growth in non-OTC business, as well as strong cash generation." Plus500 reported a 1% increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $342.3m. Panmure Liberum analysts noted that the EBITDA rise came "despite heavy customer acquisition investment in Q4". Following its results, the company announced shareholder returns worth $200m, comprising a $110m share buyback programme and $90m in dividends.

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Natwest Boxed partners with The AA for new savings account launch

2025-06-16 22:09:22

Natwest's financial services platform, Natwest Boxed, has entered into a partnership with The AA to introduce an instant savings account. The collaboration, which is set to commence from March 2025, will see Boxed, a joint venture between the FTSE 100 lender and European fintech Vodeno, utilise its embedded finance products for AA customers, as reported by City AM. The new savings account will be FSCS-protected, allowing customers to deposit or withdraw funds instantly. Personal loans are expected to follow closely behind the savings account, with the partnership promising competitive rates and immediate disbursement. The long-term partnership aims to broaden The AA's range of financial services, enabling customers to use saved funds to meet individual needs. This will include a different product range for its personal breakdown members and insurance customers, as The AA expands membership benefits. Jakob Pfaulder, AA's chief executive, expressed his delight at the partnership with Natwest Boxed, stating: "We are delighted to announce this financial services partnership with Natwest Boxed as we continue to broaden the range of services we offer our members." Andrew Ellis, Natwest Boxed's chief executive, described the partnership with The AA as a significant step in their journey to become the leading embedded finance provider in the UK, adding: "Boxed was built to power the financial services aspirations of UK's biggest brands." "We are proud to support the ambition The AA has for its customers, using our technology, balance sheet, operational support, and regulatory expertise to drive future growth." said a representative from Natwest Boxed. Established in 2022, Natwest Boxed was created to pioneer a new Banking-as-a-Service (BaaS) business within the UK. As the banking sector grapples with challenges posed by emerging fintechs, the company stated that Boxed "combines decades of banking expertise with state-of-the-art technology." Ellis, in a previous interview on the Tech.eu podcast, suggested that the BaaS model would be "key to the provision of financial services in the future".

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Swansea law firm advises on new sportswear deal for Cricket South Africa

2025-06-20 12:22:11

Swansea headquartered law firm JCP Solicitors has acted on a new partnership agreement between international sportswear manufacturer Macron and Cricket South Africa. It is the latest Macron deal for JCP Solicitors, who have advised the Italian firm for the last decade. Previous deals it has acted on for Macron include sponsorship tie-ups with Premiership football club Crystal Palace, the Welsh Rugby Union, Connacht Rugby and World Rugby. The agreement with the South African cricket federation covers the supply of technical sportswear to all national teams for the next five years. With the Cricket World Cup taking place in South Africa 2027, the partnership is set to further elevate Macron’s presence on the international sporting stage. Macron is also the technical partner of Cricket West Indies and of the cricket federations of Ireland and Italy. The South African deal sees Macron replacing previous kit manufacturer and fellow Italian firm Lotto. JCP’s Andrew Meech, director and joint head of commercial litigation and sports law specialist, acted for the sportwear giant on the deal. Mr Meech, said: “This is a major deal for Macron, demonstrating the brand’s strength, flexibility, and underlines the quality reputation that Macron has in the sportswear industry. “We are delighted to have supported Macron with this technical partnership and to continue our close relationship with their team. By working together on multiple deals over a significant period of time, we have gained a comprehensive understanding of their business model and objectives which we utilise in gaining the best possible outcome for the brand. “We wish Macron all the best with this agreement and look forward to seeing their presence within international cricket grow.” Gianluca Pavanello, chief executive of Macron, said: “This latest partnership with a leading body in the cricketing world confirms that the quality and reliability of Macron sportswear is recognised and requested by a growing number of international sport federations. “We are committed to supplying garments that not only deliver unrivalled performance but can effectively convey the history, symbols and identity of Cricket South Africa.”

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Royal Mint says gold bullion sales at record high as investors flock to safe haven

2025-06-15 16:29:46

Sales of gold bullion are skyrocketing as investors look to safeguard themselves against political and economic instability, and also from capital gains tax. The Royal Mint has reported a nine per cent increase in its revenue from gold bullion sales over 2024, setting a new record high, as reported by City AM. In the final quarter of 2024 alone, these sales surged by 153 per cent compared to Q3 2023. The Mint witnessed a significant rise in sales across all bullion categories (gold bars, digital gold and gold coins), with the number of people purchasing gold increasing by 12 per cent. Revenue from bullion coin sales jumped by 56 per cent in the fourth quarter of 2024 on the third, and by 206 per cent on the fourth quarter of 2023. On 30 January 2025, the price of gold reached a record high of $2,799 (£2,251.31) per ounce, propelled by investors snapping up the metal as a hedge against aggressive US tariff plans. Stuart O’Reilly, market insights manager at the Royal Mint, commented: "A combination of economic uncertainty and geopolitical volatility have led gold prices to hit multiple all-time highs in 2024. At a time when interest rates are gradually subsiding, investors have been drawn in by the capital growth gold has delivered as an asset class, and the protections safe- haven assets provide. Gold continues to be popular as a secure investment that can help weather financial and political uncertainty, as well as offering diversification for a portfolio." In 2024, the price of gold surged by over 26 per cent, outperforming the S&P 500. Since 2000, the value of this precious metal has skyrocketed nearly 800 per cent. Gold investments can also be exempt from capital gains tax (CGT), making it an attractive investment for those who have already utilised their ISA and Sipp allowances before the end of the tax year on 5 April. Britannias and sovereigns, gold coins produced by the Royal Mint, are free from CGT. However, gold coins manufactured elsewhere, such as South African Krugerrands or American Gold Eagles, along with other forms of gold bullion, are subject to CGT in the UK.

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Chrysalis stock surges as Klarna and Starling Bank valuations boost portfolio

2025-06-12 01:58:50

Shares in Chrysalis Investments surged over six percent this morning following a significant revaluation of its private equity holdings, including Klarna and Starling Bank. The private equity trust reported an 11 percent increase in the value of its underlying assets to 156p per share for the last quarter of 2024, according to its latest trading update, as reported by City AM. Starling Bank, accounting for 29 percent of Chrysalis' portfolio, saw a 10 percent valuation boost, mirroring share price rises in similar companies. Klarna's valuation also climbed by just over 10 percent, with Chrysalis injecting an additional £8 million into the fintech giant, which now represents 15 percent of the trust's portfolio. Deutsche Numis analyst Gavin Trodd has pegged Klarna's valuation at approximately $16 billion (£12.98 billion), following the revaluation, despite media speculation of a potential $20 billion (£16 billion) valuation. "The portfolio is highly concentrated meaning it is high risk, but also has the potential for large gains, especially if Klarna successfully IPOs this year," commented Stifel analysts Will Crighton and Iain Scouller. Chrysalis further bolstered its investments with an additional £17 million stake in Berlin-based insurtech company Wefox, whose valuation soared by 35 percent after reassessments of capital flows and the "downside scenario". However, not all news was positive; luxury travel firm Secret Escapes, another holding within Chrysalis' portfolio, experienced a 21 percent decline in value over the same period, as noted by the Stifel analysts. After selling its stake in the fraud detection enterprise Featurespace last month, Chrysalis Investments is now in possession of a £141 million cash reserve. The firm has been using this surplus to conduct share buybacks, having returned £36 million to its investors already, and has committed not to undertake new investments until it has distributed £100 million back to shareholders. Moreover, Chrysalis has vowed that any potential sales within its portfolio will see at least 25% of the net realised gains given back to its shareholders. The additional liquidity also provides an opportunity for secondary investments in existing portfolio companies if required, as seen with its engagement in Wefox, as pointed out by analysts at Stifel. "The shares are now trading on a 35 per cent discount this morning... which looks far too cheap given over £60m of buyback capacity left under the capital allocation programme and scope for further liquidity events," observed Trodd from Numis.

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Major banks including HSBC and Morgan Stanley fined for 'anti-competitive behaviour'

2025-06-25 23:06:46

The UK's Competition and Markets Authority (CMA) has imposed fines exceeding £100m on four of the world's largest banks after uncovering that traders shared market-sensitive information about gilts in private chatrooms. The individual traders from HSBC, Morgan Stanley, Citi, Deutsche Bank, and Royal Bank of Canada were found to have exchanged confidential information regarding the pricing of UK government bonds through Bloomberg chatrooms between 2009 and 2013, as reported by City AM. In an announcement this morning, the CMA confirmed the banks' agreement to pay these fines for their anti-competitive conduct. Citi is set to pay a fine of £17.2m, which includes a 35 per cent leniency discount and a further 20 per cent reduction for settling prior to the CMA publishing its preliminary findings from the probe. HSBC will pay £23.4m, Morgan Stanley £29.7m, and Royal Bank of Canada £34.2m; all these amounts reflect a 10 per cent discount for early settlement. Deutsche Bank, however, has been exempted from any financial penalty due to the CMA's leniency policy, which offers immunity or reduced penalties to businesses that report their involvement in cartel activities to the regulator. "It is important that competitors decide their price and strategies independently in order to ensure effective competition in a market," stated the CMA. It also confirmed that the implicated banks have implemented "extensive compliance measures" to prevent a recurrence of such behaviour. The institutions have been given until 22 April to settle their respective fines. "Only through healthy and competitive markets can we ensure businesses and investors have confidence to invest and grow – for the benefit of all in the UK," stated Juliette Enser, executive director of competition enforcement at the CMA.

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Lloyds Banking Group places thousands of jobs in tech division under review

2025-06-15 06:28:36

Lloyds Banking Group has launched a comprehensive review of numerous positions within its IT segment, with the aim of reinforcing its engineering capabilities and updating its digital banking services, according to insights from City AM. In a move disclosed to roughly 6,000 technology and engineering employees on Wednesday, the organization indicated that their roles could be in jeopardy amid a revamp of business structures and the introduction of new positions focused on expediting tech advancements—a process understood by City AM. It is anticipated that a four-week review will follow, after which personnel will receive confirmation of their status within the reorganized ensemble. The entire cohort of 6,000 individuals will undergo evaluation, either to be integrated into novel roles or released from the company. Despite these potential redundancies, plans are set to increase the workforce of the team by approximately 1,200 members, ostensibly enhancing domestic tech and engineering prowess, as per a company spokesperson's statement. "Making changes means not only creating new roles and upskilling colleagues but also saying goodbye to talented people who have been part of the group’s success in the past," stated the representative to City AM, adding, "Where that is the case, we will do everything we can to support them with the changes recently announced." Lloyds Banking Group underlined that this strategic transformation is designed to build a "highly skilled workforce" well-equipped to spearhead the company's advance into digital banking. Lloyds Banking Group is pursuing a comprehensive overhaul which commenced three years ago, focusing on cost management and modernisation strategies. The ongoing revamp of its technology division is a key aspect of its initiative to enhance digital services, under the ‘Platform 3.0’ scheme. The group, employing about 66,000 staff and housing brands such as Halifax, Bank of Scotland, and Lloyds, competes with other major UK banks in the race to digitise their banking platforms and tackle the burgeoning fintech and neobank sector. As part of the bank's strategy, Lloyds disclosed last week the closure of 136 branches across its brands, attributing the decision to decreased foot traffic and increased popularity of its mobile banking apps. With interest rates no longer driving high profits, lenders including Lloyds are seeking ways to cut costs. Although Lloyds' earnings have proven sturdier than some competitors, the bank acknowledged a slight dip in pre-tax profit from £1.9bn to £1.8bn year-on-year, exceeding analysts' predictions of £1.6bn. The move towards organisational transformation at Lloyds has led to significant recruitment, with 10,000 hires in the previous year and 4,000 new engineering staff to date. As it restructures its workforce, Lloyds also plans to infuse investments into cutting-edge tools and automation that enable engineers to elevate the customer experience. A spokesperson for the bank stated: "To achieve the ambitious strategy we launched in February 2022 and deliver better service to our customers, we are transforming our business." "We are excited about the progress we have made, which is already delivering benefits."

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JP Morgan Global Growth & Income trust set to acquire Janus Henderson's smaller fund

2025-06-30 19:26:05

JP Morgan's Global Growth & Income trust, a leading investment trust, is poised to acquire its smaller rival managed by Janus Henderson. The £3.1 billion JP Morgan trust has initiated a takeover bid for the £329 million Henderson International Income trust, as revealed in a stock exchange announcement today, as reported by City AM. Following the announcement, shares of Henderson International Income surged by 9.6 per cent in early trading. Both trusts have acknowledged a significant overlap in their top shareholders, with 85 per cent of Henderson's investors also holding shares in JP Morgan Global Growth & Income. Should the acquisition proceed, charges for Henderson's investors would decrease from 0.77 per cent to 0.42 per cent. The new board of the trust would include six directors from JP Morgan's trust and one from the Henderson trust, with the latter director resigning after a year. "The board believes that the proposed combination will provide shareholders with access to a larger, more liquid vehicle with an outstanding track record and a history of growing dividends whilst focusing on the most attractive investment opportunities," stated Richard Hills, chair of Henderson International Income trust. He added, "Having consulted a number of our largest shareholders who have indicated their support, we believe the combination is very attractive for shareholders as a whole." JP Morgan Global Growth & Income's largest holdings include Amazon, accounting for 6.8 per cent of assets, Microsoft at 6.7 per cent, and Nvidia at 5.6 per cent. According to data from Deutsche Numis, JP Morgan Global Growth & Income was the second most popular trust across all investment platforms in 2024, falling behind only Scottish Mortgage. The popularity among retail investors has been partially due to the strong performance of the JP Morgan trust, with its underlying assets growing by 49.2 per cent over the last three years compared to Henderson’s 17.8 per cent. This is in comparison to a 31.9 per cent return across all global equity income trusts, as per data from the Association of Investment Companies.

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HSBC shares hit 20-year high ahead of results as bank 'to start job cuts this week'

2025-06-21 09:49:25

HSBC's share price soared to a 20-year high on Tuesday morning, reaching levels not seen since before the financial crisis. The FTSE 100 lender is set to announce its annual results tomorrow morning, marking the first set of results under the leadership of Georges Elhedery, as reported by City AM. The bank's stock surged to 894.70 following the market opening, its highest price since 2001. HSBC is scheduled to report earnings on Wednesday. Bloomberg analysts predict earnings of £25.2bn for 2024, an increase from £24.1bn in 2023. Job cuts at the lender's investment banking division are anticipated to commence this week, according to Bloomberg. Elhedery, who succeeded former group chief Noel Quinn in September, is expected to save the group £1.2bn through his reorganisation plans. The Financial Times reports that the full extent of the cuts will be disclosed on Wednesday. HSBC's earnings follow those of Barclays and Natwest, both of which announced their 2024 results last week. Richard Hunter, head of markets at Interactive Investors, commented: "The story so far for Barclays and Natwest has been one of strong results but a muted market reaction, partly in response to both shares having doubled over the last year and therefore being subject to higher expectations." "Gains in the share prices at the three remaining banks have also been notable over the last year, with HSBC having added 38 per cent, Lloyds 46 per cent and Standard 89 per cent, thus making them susceptible to a similar reception. "

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London Stock Exchange Group sees upgrade by RBC ahead of results

2025-06-24 21:03:37

Analysts have raised their ratings for London Stock Exchange Group (LSEG) ahead of the company's full-year results scheduled for next week, with expectations that a new share buyback initiative might be unveiled. In a research note released today, experts at RBC Capital Markets elevated LSEG's price objective from 11,600p to an optimistic 12,500p, as reported by City AM. Currently trading at around 11,680p, the stock has climbed over 32% in the past twelve months. "Despite strong recent performance, we believe the shares are well positioned to perform over 2025, with earnings per share growth and re-rating potential both serving as potential drivers," commented RBC analyst Ben Bathurst. Further propelling the favourable outlook is the anticipated deregulation and global uncertainty since Donald Trump’s ascension to the US presidency, situations which Bathurst noted tend to increase reliance on comprehensive market data. Amid persistent unease about the number of entities delisting from the London Stock Exchange, the institution earns a mere fraction, less than four percent of its gross profits, from equities trade. Income from bonds and derivatives now generate more than fivefold the £180m accrued from stock dealings throughout the initial nine months of 2024. Even so, tensions regarding the traditional trading floor's viability have escalated to such an extent that key investors in LSEG are advocating for the organisation to divest its historic trading platform and reinvent itself as a technology enterprise. Blue Whale manager Stephen Yiu commented last month that LSEG's shareholders "don't really care" about the exchange, and its issues were "overshadowing" the success of its data business. The London Stock Exchange Group's (LSEG) data and analytics division now accounts for roughly two-thirds of its revenue following its deal with Microsoft. The group's shares are currently valued at 26 times its estimated earnings for 2026, which is 15% lower than other data providers in the market. "Given the improving growth outlook, we believe the argument for LSEG's discount to data provider peers has been further weakened," Bathurst remarked. Last year, the London Stock Exchange completed a £1bn share buyback programme, and another draw for investors is RBC's anticipation of additional capital returns to be declared in the forthcoming results next week. In a recent research note on Deutsche Boerse, the German stock exchange, Bathurst once again showed a preference for LSEG, citing better prospects for capital return and "clearer re-rating potential" compared to its rival.

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Historic Leeds accountancy firm Thomas Coombs expands across Yorkshire

2025-06-18 23:13:06

A longstanding accountancy business from Leeds has announced three new office openings across Yorkshire and Humber. Thomas Coombs, which was started in 1878, is opening bases in Hull, Leeds and Sheffield as part of efforts to make the firm more accessible to clients and facilitate face-to-face meetings. The new locations include premises at Norwich House in Hull, at The Bonding Warehouse in York and 1 Concourse Way in Sheffield. The firm says the locations will offer consultation by appointment, covering a range of services including tax planning, year end accounts, cloud accounting solutions, audits and business consultancy. It follows promotion of Thomas Coombs staff Shaun Pullan and Jordan Mitchell to directors at the start of this year. Mr Pullan joined Thomas Coombs in 2014 through the firm's apprenticeship scheme and has since risen through its ranks to become head of business services, creating Thomas Coombs' first outsourced finance team", while managing a portfolio of clients with turnovers between £100,000 to more than £10m. Jordan Mitchell joined the firm in 2013 as a trainee accountant and has since become head of audit, handling some of Thomas Coombs' largest audit clients. Thomas Bond, director at Thomas Coombs, said: "We’re proud to have supported businesses and individuals across Yorkshire for nearly 150 years from our head office in Leeds, and we’re excited to continue this tradition for many more years to come from our new office location. The opening of our new office in Hull directly responds to the growing local demand for accessible, in-person accountancy services. "This expansion allows us to offer clients across the Yorkshire region greater flexibility and convenience, ensuring we’re always available when and where they need us most. We look forward to strengthening our connections with the local community and remain committed to delivering the expert advice and personalised service that has earned us the trust of clients across Yorkshire.

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UK economy grows as Chancellor Rachel Reeves avoids recession

2025-06-14 11:43:37

Chancellor Rachel Reeves was given a minor lift as the economy unexpectedly expanded at the end of last year, staving off an immediate recession. The Office for National Statistics (ONS) reported that output grew by 0.1 per cent in the final quarter of the year, following a 0.4 per cent rise in GDP in December, as reported by City AM. Economists had predicted a 0.1 per cent contraction, with month-on-month growth expected to be just 0.1 per cent in December. "The economy picked up in December after several weak months, meaning, overall, the economy grew a little in the fourth quarter of last year," said Liz McKeown, ONS Director of Economic Statistics. The UK's crucial services sector saw a 0.2 per cent growth over the quarter, while construction activity increased by 0.5 per cent. This compensated for a 0.8 per cent drop in production. December's figures were bolstered by strong performances from pubs and bars, as well as the "often-erratic" pharmaceutical sector, according to McKeown. "In a surprise twist, the UK economy beat expectations to end the year on a positive momentum," stated Sanjay Raja, chief UK economist at Deutsche Bank. Over the entire year, GDP is estimated to have grown by 0.9 per cent, up from 0.1 per cent in a recession-hit 2023. However, GDP per head – a more accurate measure of living standards – fell 0.1 per cent across the final quarter, having dropped 0.3 per cent in the third quarter. "Better than expected growth at the end of last year means that Britain has avoided another technical recession. But it remains mired in a living standards downturn, with GDP per person still below pre-pandemic levels," commented Simon Pittaway, senior economist at the Resolution Foundation. The latest figures may provide some encouragement for Reeves as she endeavours to move beyond the challenging initial six months at the helm. With economic growth being a focal point of her administration's agenda, the slight improvement comes after a period of near-stagnation since spring, due partly to policies enacted under Reeves' leadership. "It’s clear that a lot of the weakness is due to the rise in business taxes announced in October’s Budget as well as soft demand overseas," stated Paul Dales, chief UK economist at Capital Economics. According to ONS data, corporate and consumer confidence saw significant decline following October’s Budget announcements by Reeves, which imposed tax increases totalling £40bn. Surveys suggest companies are slashing jobs at rates not seen since the pandemic began, bracing for payroll cost increments set to come into effect in April. Last week, the Bank of England adjusted its forecasts for 2025, slashing the growth prediction to 0.7 per cent from a former 1.5 per cent estimate. The Office for Budget Responsibility (OBR) is anticipated to revise its projections downward next month—a move that could pressurise Reeves to implement spending cuts or potentially introduce further tax hikes later this year. "Working people and businesses are already paying for her choices with ever rocketing taxes, hundreds of thousands of job cuts and business confidence plummeting," said Shadow Chancellor Mel Stride. Despite the figures ensuring that the UK does not face an immediate recession, economists were divided about the direction of growth in the coming months. "With business sentiment on the floor and employment declining, it’s hard to see private sector activity improving much in Q1 or Q2," commented Dales. However, Ben Jones, lead economist at the Confederation of British Industry, suggested that the data supports the view that the slowdown in growth will be a "soft patch...rather than a slide back into stagnation". Over recent weeks, Reeves has announced various measures – such as a third runway at Heathrow and changes to the planning regime – to try and stimulate the economy. "For too long, politicians have accepted an economy that has failed working people. I won’t," responded Reeves to the figures.

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Cost-cutting pays dividends for TSB as bank reports record year

2025-07-10 09:43:12

TSB's cost-cutting measures have enabled the bank to weather a "competitive mortgage market", as the high street lender reported a record-breaking year. TSB's pretax profit rose to £290.4m, a 22 per cent increase from the previous year and a record since the bank's return to the high street in 2013, as reported by City AM. This was achieved despite a slight drop in income to £1.1bn from £1.2bn in 2023, which the bank attributed to "lower mortgage margins in a highly competitive market". The profit boost was due to reduced costs. TSB reported that operating expenses had decreased by 3.6 per cent to £821.9m, down from £852.9m the previous year. "A continued focus on costs and lower restructuring costs helped to mitigate the impact of higher inflation, one-off costs and the new Bank of England levy," it stated. Credit impairment charges also dropped by 44 per cent to £30.1m, reflecting an improving economic outlook and lower risk from its unsecured portfolio as cost-of-living pressures ease. The bank’s net interest margin (NIM) fell by seven basis points to 2.68 per cent compared to 2023, although margins actually improved throughout each quarter in 2024. NIM measures the difference between what banks pay on deposits and what they earn from loans and other assets. By the fourth quarter, the bank’s NIM stood at 2.77 per cent. Most banks have seen margins improve in recent years thanks to the Bank of England’s interest rate hikes. The prospect of fewer rate hikes will likely prove a tailwind for many lenders. The bank commented on the fluctuating market expectations, stating: "Market expectations have been unstable, but imply that the Bank Rate will remain higher than in the years preceding the recent rises." TSB announced its plans to pay a £300m dividend to its parent company, Spanish bank Sabadell, which is currently warding off a hostile takeover bid from BBVA.

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Bank of England still likely to cut rates despite surging wages, says Bailey

2025-06-24 09:57:39

Andrew Bailey, the Governor of the Bank of England, has indicated that the institution is still poised to lower interest rates again this year, despite a surge in pay growth and an expected rise in inflation. Speaking at an event in Brussels, Bailey addressed the recent labour market figures showing a significant increase in wage growth, suggesting they are unlikely to alter the Bank's policy direction: "Pay growth went up, but actually not quite as much as we were expecting," he remarked. The Office for National Statistics (ONS) reported that regular pay growth in the private sector reached 6.2 per cent in the final quarter of the year, marking the highest level since November 2023. However, this figure was marginally below the 6.3 per cent forecast by Bank of England experts, as reported by City AM. Bailey referred to the Bank's forward-looking survey on pay pressures, which indicates that wage pressures are expected to diminish over the next year: "One of the best anchors we have is the survey that our agents around the country do every year, and they think settlements this year are going to come down," he explained. The Bank of England projects that annual wage growth will decrease to 3.7 per cent across 2025, from 5.3 per cent for the current year. "I don't think we saw anything this morning that fundamentally changes that," Bailey added. His comments precede the release of the latest inflation figures, set to be published tomorrow morning. Analysts in the City predict that the headline rate will increase to 2.8 per cent, driven by recovering services prices. The Bank's projections indicate that inflation will climb to 3.7 per cent later in the year, primarily due to escalating energy prices. Bailey clarified that this surge in inflation does not signify "a story about the fundamental state of the economy," as it largely mirrors changes in regulated prices, such as energy bills. He further noted that the inflation hike would occur against "a background...which is weaker in growth terms than we thought it would be" which should curb its longevity. Earlier this month, the Bank of England reduced interest rates for the third time, lowering the Bank Rate to 4.50 per cent.

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Metro Bank sells off £584m personal loan book as it switches to specialist lending

2025-06-30 01:59:36

Metro Bank is in the process of divesting its £584m portfolio of unsecured personal loans as it shifts focus towards specialist lending. The sale, hinted at the end of January, is expected to net the FTSE 250 bank a profit of £11m. The transaction details are yet to be revealed but come just before the company is due to announce its annual results on Thursday morning, as reported by City AM. Analysts from Peel Hunt, including Robert Sage, Stuart Duncan and Stephen Payne, commented: "By downsizing exposure to legacy unsecured personal loans more rapidly than expected, Metro can free up funding and capital to scale up its commercial and corporate lending balances, which have higher risk-adjusted returns sooner than guided." They noted a surge in demand for commercial and corporate lending, suggesting that the sale could reinforce the bank's balance sheet. The analysts further remarked: "The steadily rising groundswell of positive news for Metro continues with this announcement." They praised the bank’s management strategy: "Having set out an ambitious and transformative strategy aiming to generate returns above the sector average, management is now showing how it may be able to deliver on its plans even more rapidly than its already tight stated timeframe." They have also planned to update their target price and recommendations after reviewing the full-year financial results from the bank. Meanwhile, Metro Bank, boasting roughly three million UK customers, hasn't offered new personal or unsecured loans since 2023, reflecting its concentrated effort on specialist lending. The lender unveiled a series of cost-saving measures at the start of the year, which included cutting 1,000 jobs and reducing the opening hours of its high street branches.

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Ashmore stock rises as outflows continue but asset manager beats expectations

2025-06-23 22:17:39

Emerging markets investment firm Ashmore has surpassed expectations once again despite experiencing further outflows, leading to a 1.6% uptick in its share price. The FTSE 250 fund manager’s recent half-year results indicate that the adjusted operating profit reached £33.7m for the last six months of 2024, outperforming the £31m predicted by analysts, as reported by City AM. At the close of December, assets under management were reported at $48.8bn (£39.2bn), maintaining their level from the previous half-year. Positive investment performance contributed an additional $0.6bn, but outflows dampened this gain with a $1.1bn deduction. There was a notable decrease in net management fee income, dropping from $103.7m in the final six months of 2023 to $88.3m, causing profit margins to shrink from 39 basis points to 36—which fell short of analysts’ expectations of 37. Ashmore's total adjusted net revenue declined by 14% compared to the previous year to £79.9m, although the company mitigated some of the impact due to a nine percent reduction in adjusted operating costs. CEO Mark Coombs commented on the results: "Ashmore’s net flows continue to improve and AuM was largely unchanged at the end of the period. Ongoing strong control of operating costs helped to mitigate the impact of lower average AuM on the financial results, and the group continues to invest in strategic growth and diversification opportunities, including through its seed capital investments." "There are compelling reasons for investors to shift their allocations from heavily overweight US positions towards the appealing valuations and investment opportunities in emerging markets," was the advice given. "These markets provide significant diversification and growth, which is increasingly acknowledged by clients and reflected in activity levels. Ashmore’s active investment management processes are delivering for clients and the Group is well-equipped to handle the asset price volatility resulting from the US election, and to seize the longer-term upside from current market levels." Peel Hunt analyst Stuart Duncan commented: "We believe there is still room for optimism that a revival in sentiment towards emerging markets could benefit Ashmore." He added, "This is supported by a multi-year bull run in the US dollar, which, if it reverses, should lead to increasing allocations to areas like emerging markets, and improved investment performance, as is typical of Ashmore’s investment process." Last month, the asset manager surprised markets when it reported a drastic decrease in outflows. Investors withdrew $400m (£322m) in the last quarter of 2024, significantly less than the $1.1bn (£885m) anticipated by analysts.

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Profit warnings rise in the North West as rising costs and global uncertainty combine with contract cancellations

2025-06-14 09:04:34

The number of profit warnings from listed companies in the North West ticked up in 2024 as businesses were affected by high costs and global uncertainty in the second half of the year. EY-Parthenon’s latest Profit Warnings report showed UK-listed companies in the North West issued 29 profit warnings during 2024, up on the 27 warnings in 2023. The first half of 2024 saw profit warnings fall year-on-year – but a “challenging” third quarter pushed up the total. In line with the national trend, regional businesses in the Industrials FTSE super-sector were worst affected, with seven warnings in 2024. Regional businesses in the consumer discretionary and technology FTSE super-sectors issued a total of five warnings each. The EY-Parthenon study found that UK-listed companies issued 274 profit warnings last year, down slightly from the 294 issued during 2023. It showed the leading factor behind profit warnings last year was “contract and order cancellations or delays”, cited in 34% of warnings. Increasing costs sparked 18% of warnings in the last 12 months. Sam Woodward, EY-Parthenon UK&I turnaround and restructuring partner in the North West, said: “After an encouraging and resilient start to 2024, the second half of the year was a more difficult period for companies in the North West, with economic challenges including sticky inflation, high interest rates and geopolitical tensions beginning to have a more significant impact on the region’s business community. “Companies operating in the Industrials FTSE super-sector issued the region’s highest number of warnings last year, so businesses operating in this area in particular should continue to prioritise scenario planning and stress-testing. However, given the UK economy’s performance is expected to be slightly better in 2025 than last year, forward looking prospects appear to be improving. The North West is also home to a wide range of resilient, innovative businesses, so there are undoubtedly reasons for optimism despite last year’s challenges.” Jo Robinson, EY-Parthenon partner and UK&I turnaround and restructuring strategy leader, said: “It’s clear that companies have faced an extraordinary succession of forecasting challenges since the pandemic, contending with interconnected disruptions to supply chains, material and energy costs, and the labour market, as well as higher interest rates. 2024 was also an exceptional year for global geopolitical uncertainty and policy upheaval, with a record level of profit warnings linked to contract and spending delays as businesses held back from recruitment and investment. As a result, companies’ forecasting strategies need to respond to both short-term policy changes and deeper structural issues. “Ordinarily, a sustained increase in company earnings pressures would be followed by a significant rise in insolvencies. But this cycle has been different. The availability of cheap, long-term debt and pandemic support provided breathing space for both businesses and stakeholders to explore consensual solutions and new restructuring options. “However, more companies are now reaching a tipping point as cumulative pressures build. We don’t expect a huge uptick in insolvency levels in 2025, but we are now seeing more distress, and more stakeholders viewing insolvency processes as a real option in finding the best path forward. “While the pace of profit warnings has eased slightly in early 2025, we’ve seen the recruitment sector continue to grapple with a downturn in activity across key geographies and sectors, before the increases in employer National Insurance Contributions and the National Living Wage take effect. Across the board, the road ahead remains rocky with challenges around trade, geopolitics, interest rates, and more.”

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Dorset accountancy practice snapped up by UK professional services firm

2025-06-26 11:12:21

An accountancy firm in Dorchester has been acquired for an undisclosed sum by UK professional services firm Xeinadin. Poundbury's CB Reid provides accountancy, financial and taxation services to individuals, businesses, corporations, public bodies, charities and professional practices. The company has a particular focus on start-up businesses. The deal comes less than one month after Xeinadin acquired Watford-based Landmark Accountants. The expansion adds 20 staff, who will continue to work for the business following the transaction, to Xeinadin's operations in Dorchester. Pete Cattermole, managing director at CB Reid, said: “We are delighted to be joining Xeinadin. As the firm has grown in size and complexity, we have come to realise that to continue to deliver an excellent service to clients, we need support from a larger firm behind us. We strongly believe that Xeinadin is the perfect fit for our clients and team.” Derry Crowley, chief executive at Xeinadin, added: “Dorset is a growing entrepreneurial hub and bringing in CB Reid significantly boosts our presence and expertise in the region. Welcoming Pete and his team to Xeinadin is a natural fit. We are eagerly anticipating the journey ahead.” Last year, Xeinadin was named as the 19th largest accountancy firm in the UK by Accountancy Age. It has more than 135 offices and employs over 2,500 staff. The business has nine regional hubs across the UK and Ireland.

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North West law firm Harrison Drury completes management buyout

2025-07-10 20:53:11

North West law firm Harrison Drury has been acquired by six members of its management team in moves heralding and “exciting new chapter”. The MBO was led by partner and head of the firm’s property and construction division, Simon England, together with existing partners Nick Booth, Hannah Hughes, Malcolm Ireland, Rick Life and Mark Traynor. Simon England, who is a current shareholder, will become managing partner, while current majority shareholder and executive chairman John Chesworth will become senior partner and support the new ownership team. Harrison Drury has grown since John Chesworth acquired the firm in 2007 from Eddie Starkie. Under Mr Chesworth’s leadership, it has grown from a firm of 12 staff in one office in Preston to a team of 190 staff across eight offices in Clitheroe, Garstang, Kendal, Lancaster, Lytham, Manchester, Preston and Southport. In 2024, the firm was named 28th in the UK’s top 100 Best Mid-sized Companies to Work For, also placing it in the top five for UK mid-sized law firms. Mr England said: “Independence is at the heart of who we are. Retaining this ensures we can uphold our commitment to being a truly people-centred organisation. This enables our lawyers to enjoy the freedom of serving our clients – owner-managed businesses, entrepreneurs, and high-net-worth individuals – the way they know best. “The firm has embarked on a remarkable journey under John’s leadership, thriving in an intensely competitive legal marketplace and earning a reputation as a leading employer. This reputation attracted me to the firm in 2013, as it did for the exceptional professionals who work across all our teams and offices. “Since becoming a shareholder in 2014, John and I have focussed on recruiting, developing and retaining talented people who share our values. Today, we’re proud to have a hugely talented and aligned ownership team and partner group, well prepared to guide the firm into an exciting new chapter.” Mr Chesworth said: “From the very beginning, my vision for Harrison Drury was to establish it as a leading regional law firm in the SME market. Central to this vision has been the focus on attracting, growing and retaining outstanding people, something that has led to the emergence of leaders across the business. I am incredibly proud to see some of those who have been integral to our success now poised to lead the firm into an exciting new era. “Across the firm, we are united by a shared commitment to our ethos of building teams of good people, keeping them engaged and enabling them to deliver excellent client service, while making a positive impact in our communities. “Since 2007, we’ve navigated an extraordinary period of change, from the global financial crisis and Brexit to the pandemic and technological transformation, not to mention six changes in prime minister. “Through it all, our culture has been the bedrock of our success, driving positive growth, staying true to our core values and supporting our clients, partners and communities and that will continue to be the case.” Mark Traynor, who joined Harrison Drury in late 2023 to head up the firm’s corporate team, added: “In an active legal marketplace with lots of consolidation, we wanted to bring through our own ownership team and find the new custodians of the firm who will protect and enhance its established values and mission, and lead from the front.

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Standard Chartered shares jump as bank unveils profit, dividend hike and overhaul

2025-06-23 05:41:42

Shares in Standard Chartered surged over four per cent on Friday morning following the release of its full-year results. The multinational bank announced a revamp of executive pay after missing analysts' profit predictions for the final quarter. Pre-tax profit dropped 30 per cent to $800m (£631m) for the fourth quarter, falling short of the estimated $983m that analysts predicted the FTSE 100 lender would make in the year's closing months, as reported by City AM. Adjusted for restructuring and additional costs, the bank's underlying pre-tax profits came in at $1bn, aligning with analyst consensus. The bank's annual profits saw an 18 per cent increase to $6bn, up from the $5bn reported in 2023. A $1.5bn share buyback was unveiled in the final results, along with a proposed final dividend of 28 cents per share. This takes the bank's total shareholder distributions to $4.9bn, with plans outlined to return $8bn to shareholders. Russ Mould, investment director at AJ Bell, commented: "You wouldn't normally expect a profit miss to get a positive reception but investors have been prepared to look past this at Standard Chartered and concentrate instead on a big increase in the dividend, a bumper buyback and a meaningful improvement in underlying performance." He added: "Standard Chartered is a very different animal from most of it's UK-listing banking peers, operating exclusively in much less mature markets in Africa and Asia." Mould highlighted that this approach provides the bank with "plenty of growth to go after, something which is particularly evident right now in its Asian wealth management arm." Meanwhile, Will Howlett, a financials analyst at Quilter Cheviot, commented: "Standard Chartered's results for 2024 are somewhat mixed due to several one-off items, including a software write-off, a restructuring charge and a reclassification related to deposit insurance. However, we see strength in the key areas." He further added: "Our positive view on Standard Chartered reflects its strong loan growth potential from its Asian footprint, where GDP growth rates are structurally higher. Net interest income is also supported by the 'higher for longer' interest rate narrative. Profitability has been improving, with the bank targeting a return on tangible equity of 10 per cent this year, increasing steadily to 12 per cent in 2026." In relation to executive pay packages, Standard Chartered announced amidst the results that it would alter chief executive Bill Winters' remuneration package by cutting his salary by 40 per cent and offering higher potential bonuses. This overhaul could potentially increase his total pay package to as high as $13.1m for 2025. However, Winters' annual salary will be reduced by 40 per cent to $1.5m. This move by Standard Chartered mirrors the actions of many of Britain's largest lenders, such as HSBC, which initiated similar changes following the removal of the bonus cap for bankers last year. Under the new pay structure, if Winters meets all performance targets, his remuneration could potentially double from the amount received in 2022. The bank's employees saw a seven per cent increase to their 2024 bonuses, bringing the total figure to $1.7bn. The London-based bank stated that the removal of the cap on bonuses provided an opportunity to "develop a new approach for executive directors and the applicable wider workforce." Reflecting on the results, Winters commented: "We produced a strong set of results in 2024."

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Interest rates cut – what does it mean for the North West? 

2025-07-06 15:21:14

The Bank of England’s move to cut interest rates has been cautiously welcomed in the North West. The Bank’s Monetary Policy Committee (MPC) voted for a quarter-point reduction to 4.5% – taking the base rate to its lowest level since June 2023. The bank also cut its short-term forecasts for the UK economy but said the economy would grow faster than expected in the longer term, with a growth rate of 1.5% for 2026 and 2027, both up 0.25 percentage points compared with the last forecast. There were also signals inflation is rising again, with forecasts pointing to a bigger-than-expected peak of 3.7% later in the summer. The Bank said the increase was due to factors including higher-than-expected energy prices. Paul Cherpeau, chief executive of Liverpool Chamber, said: “The Bank's decision will be welcome news for businesses, who will hope it signals some longer-term positivity in the economic outlook at a time when growth has been stagnating. "For some, it may be the impetus of reassurance they need to move forward with investment or recruitment plans, further fuelling growth and confidence within the economy. “It remains unclear whether this sets us on a path towards further incremental cuts during 2025. A volatile inflation picture, ongoing wage pressures and various external uncertainties are still capable of derailing any plans the Bank may have to sanction any further cuts. However, this latest move certainly gives us scope to proceed with cautious optimism." Rachel MacCutchan, sales director for Cheshire’s Morris Homes, said:“The Bank of England’s (BoE) interest rate cut is welcome news for prospective homeowners, helping to open up more opportunities for them on the property market. “We’ve seen Barclays Bank react already by reducing its rates and expect more to follow, which will lead to more affordable mortgages, make houses more accessible, and increase confidence in the housing market. “The BoE's decision comes at a perfect time as we recognise New Homes Week, marking a positive move which will help people take their first step on the property ladder.” Matthew Allen, lecturer in economics and macroeconomic expert at the University of Salford, said: “Although it has been widely anticipated that interest rates would be cut, the timing of such a decision remains uncertain due to external economic pressures, particularly the unpredictability surrounding trade policy. The recent imposition of tariffs by President Trump in Canada, Mexico and China has heightened concerns, the threat to the EU and it remains unclear whether the UK will also be subject to such measures. Any tariffs imposed on UK exports could aggravate existing economic fragilities, adding further strain to businesses already wrestling with rising costs and consumer pockets. “Domestically, economic conditions in the UK have been stagnating. Growth is slowing, unemployment is rising, and consumer and business confidence remains weak. A key factor behind this decline is the sharp increase in employer National Insurance Contributions (NICs) and the substantial rise in the National Living Wage, as announced in the Autumn Budget. While these measures aim to support UK workers and public finances, they have also increased operating costs for businesses, leading to concerns about job losses, reduced investment, and higher prices. “The potential for further inflationary pressures complicates the Bank of England’s decision on interest rates. Whilst the rate cut could provide some relief by easing borrowing costs for businesses and households, it also carries the risk of fuelling inflation if price pressures persist. If tariffs are imposed on UK goods, the increased cost of imports could further drive-up prices, making the cost-of-living crisis worse for the British people. “Ultimately, whilst the interest rate cut may be good news for some in terms of lower borrowing costs, its effectiveness will depend on wider economic conditions, including trade policy decisions and fiscal measures already in place. The uncertainty surrounding US tariffs, coupled with domestic cost pressures, presents a complex challenge for policymakers, and a cautious approach will likely be required in the months ahead.”

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FTSE 100 hits record high in 2025, boosted by global market trends and Smiths Group breakup

2025-07-03 21:44:09

The FTSE 100 has reached another record high this morning, with the index increasing by five per cent since the beginning of 2025. London's primary index climbed 0.46 per cent this morning before slightly retreating, while the more domestically focused FTSE 250 surged 0.53 per cent as reported by City AM. Susannah Streeter, head of money and markets at Hargreaves Lansdown, attributed this trend to investors seeking safer havens amidst Wall Street volatility over AI spending and Trump’s tariff plans: "Given the volatility this week on Wall Street as investors fret about the trajectory of AI spend, and the impact of Trump’s tariff plans, there’s been a flight to safer havens, offering more reliable returns, where stocks have been undervalued compared to their US peers." Earlier this month, the FTSE 100 achieved its first all-time high since last spring, fuelled by investor speculation that the Bank of England would slash interest rates more drastically than anticipated. The index also benefited from a depreciating pound and a commodity boom, which propelled miners and oil companies. Although the pound has rebounded from the $1.22 low it hit earlier in the month, it remains seven per cent lower against the dollar over the past four months, currently standing at $1.24. Russ Mould, investment director at AJ Bell, commented on the FTSE 100's recent performance: "The FTSE 100 marked new record highs on Friday morning, taking its cues from solid trading on Wall Street as the recovery from Monday’s DeepSeek related volatility continued." He noted that "Defence and energy names were among those giving the UK’s flagship index an end-of-week boost." Today, the most significant boost to the FTSE 100 has come from Smiths Group, whose shares surged over 11 per cent following the announcement that the company is considering a split. The global engineering firm disclosed plans to offload Smiths Interconnect and separate Smiths Detection through either a demerger or sale, alongside a commitment to a £500m share buyback programme. Other notable gainers in today's trading include Next, with a two per cent increase, BAE Systems rising by 1.3 per cent, and St James’s Place up by 1.2 per cent. "Investors will be relieved that the markets have successfully negotiated a week full of major events including a Federal Reserve interest rate meeting and the start of the Magnificent Seven earnings season," Mould commented. He also pointed out that there's another potential market mover on the horizon: "Later on, there’s one more hurdle to get over this week as core PCE inflation data is released in the US.

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Law firm Hugh James reports best ever year for merger and acquisition deals

2025-07-02 03:45:54

Legal firm Hugh James has reported its best ever year for corporate deals after acting on transactions with a value of nearly £650m in 2024. Its commercial team advised on 60 merger and acquisition transactions with their combined value more than double that in 2023. The firm, which has its headquarters in Cardiff as well as offices in London, Manchester, Southampton and Plymouth, said that its deal pipeline for 2025 was also encouraging. Gerallt Jones, partner and head of Hugh James’ corporate/ commercial team said: “2024 was another record-breaking year for our team. The lead up to the Budget in October was the busiest period the team has ever experienced, as a result of a huge rush for deals to complete before anticipated tax changes. More generally though, there was a constant stream throughout the year of M&A and investment deals both within and outside Wales.” Significant deals it advised on in 2024 included: Mr Jones said: “We are also really pleased to have supported two new entrants into the Welsh investment market, namely, advising The £50m Cardiff Capital Region fund, IIC, on its multi-million-pound investment in the online accountancy company, Mazuma, and advising venture capital firm, Waterspring Ventures, on a number of investments.” Reflecting on another successful year and the outlook for deals, corporate, M&A and commercial partner, Aled Walters, said:“After the hive of activity in the run up to the Budget, the market flattened at the tail end of 2024 as companies and investors considered their responses to the measures introduced by the Chancellor. Looking ahead, more than in recent years, deal activity in 2025 is likely to be dependent on the broader economic and political landscape, both within the UK and more generally. “There are a number of potential headwinds including the impact of a new president in the US and the performance of the UK economy, which could have a significant impact on the market. However, we remain positive for the year ahead. The outlook for 2025 is already promising with increased levels of interest already evident.” Moreover, Hugh James, which employs more than 700, has been appointed to the Development Bank of Wales’ new property legal services panel. Under the contract, which will run for two years with the option to extend for a further eight, its lawyers will provide support and advice in relation to property loan size applications to the development bank of over £1m. Peter Hurn, partner and head of commercial property at Hugh James, said: ‘We’re proud to have been appointed to this panel. Hugh James has supported the Development Bank of Wales, including its predecessor body Finance Wales, for 17 years, and we really value our long-running, successful relationship. The development bank plays a vital role in Wales, and we’re pleased to be able to support it to achieve its mission to unlock economic potential and enhance the economy through sustainable, effective finance.”

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Barclays latest firm to tighten office attendance rules with three-day minimum

2025-06-23 20:52:02

Barclays has become the latest major company to tighten its office attendance policy, requiring staff to be in the office at least three days a week. The British-based bank revealed a stricter approach to hybrid working in a memo to staff earlier this week, reducing the minimum number of days staff can work from home from three to two, as reported by City AM. Many Barclays employees, including those in client-facing and investment banking roles, already spend four or five days a week in the office, but the official company-wide policy had only required two days. The decision to increase this to three, first reported by the Financial Times, comes as many major UK firms grapple with their approach to hybrid working as the pandemic's impact recedes. Earlier this month, City AM reported that WPP boss Mark Read had informed his 100,000-strong workforce that they would need to work from the office at least four days a week from April. This announcement, made via a company-wide memo, sparked a strong backlash from Read’s staff, resulting in a public petition that garnered nearly 20,000 signatures. Shortly after WPP announced its new policy, Barclays' competitor Lloyds stated that senior staff could have their bonuses reduced or withdrawn if they do not work from the office at least twice a week. The UK’s largest mortgage lender told managers it expected them to set an example for younger staff. Within the finance sector, investment banks such as JP Morgan, Morgan Stanley, and Goldman Sachs led the charge back to a five-day in-office workweek, signifying a split from their retail banking counterparts. Goldman Sachs' leader David Solomon referred to remote working as an "aberration" as early as 2021, at a time when other firms in similar industries lacked definitive hybrid work strategies. Jamie Dimon of JP Morgan has been vocal about his doubts regarding home-based work and recently supported Donald Trump and Elon Musk in urging all federal workers to return to full-time office work.

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HSBC shares slump after profit beats expectations

2025-07-11 01:01:46

HSBC has exceeded analyst profit predictions in its annual results, as the new CEO emphasises a commitment to cost-cutting. The FTSE 100 bank released its first set of results under the leadership of Georges Elhedery this morning, covering Q4 and the full year of 2024, as reported by City AM. Shares in the banking giant initially rose by one per cent following market open, but quickly fell into negative territory. The stock price dropped to 889.7p early on Wednesday morning. For Q4, it reported a pre-tax profit of $2.3bn (£1.8bn), and the bank posted a pre-tax profit of $32.3bn (£25.6bn) for 2024, an increase from $30.3bn (£24bn) in 2023. Operating expenses increased by $1bn (£800m), with the bank attributing this rise to greater technology investment and the impact of inflation. Since taking up his position in September 2024, Elhedery has announced a cost overhaul, which involved dividing the bank into four new divisions. HSBC reported a decrease of $3.1bn (£2.5bn) in net interest income, which the bank said was due to the effects of business disposals and higher funding costs from transferring commercial surplus to the trading book. It also announced a $2bn (£1.6bn) share buy-back, following on from $9bn (£7bn) which began in 2024. Total shareholder return for the year was over 30 per cent, following the bank repurchasing 11 per cent of the issued share count since 2023. Similarly, the bank's net interest margin reduced by 10 basis points to 1.56 per cent. The bank has projected its net interest income to be approximately $42bn (£33bn) in 2025, considering "a number of market-dependent factors." Gary Greenwood from Shore Capital stated: "The final dividend was slightly better than expected while a further $2bn buyback was in line." He added, "Overall, there is probably more for the market to like than not here, but the shares are now trading close to a 20 year high and look increasingly up with events." Richard Hunter, Head of Markets at interactive investor, commented: "These are not results to shoot the lights out, but the areas in which HSBC is showing particular strength are those which will receive special attention following the group's new refocus." He continued, "Changing horses midstream is never an easy task, and the previously announced transformation will have upfront costs which will delay the benefits of the anticipated savings." He also noted, "On the other hand, the rationale for a more focused operation is clear and should allow the group to reap the rewards of a higher focus on profit generation, while also keeping costs in check." He concluded by saying: "Overall, these are comforting numbers which leave HSBC a strong springboard on which to build as the business is reorganised." The bank remains committed to cost-cutting, with Elhedery's cost-cutting initiative set to continue as it maintains a group-wide focus on cost discipline. The bank anticipates cost reductions of $0.3 billion (£238 million) in 2025 and an annualised decrease of $1.5 billion (£1.2 billion) by the end of 2026. CEO Elhedery commented on the results, stating: "Since becoming CEO, I have focused on simplifying how we operate and injected energy and intent into the way we deliver our strategy." He continued: "I have established a smaller, core team of exceptionally talented leaders driven by a growth-oriented mindset and a firm focus on dynamically managing our costs and capital. "We are embedding this approach across the organisation to ensure we are continually focused on these two important principles. "Each targeted action we are taking is designed to unlock HSBC's full potential.

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Pound sterling drops as US inflation accelerates unexpectedly, Fed rate cuts in question

2025-06-15 12:38:11

The pound sterling took a hit on Wednesday afternoon following the release of new data indicating an unexpected rapid acceleration in inflation within the world's largest economy. The Bureau of Labor Statistics reported US inflation reached 3.0 per cent in January, a climb from 2.9 per cent, surpassing economists' forecasts, as reported by City AM. The data revealed a 0.5 per cent price rise in January, the most substantial monthly increase since August 2023. Moreover, core inflation, which omits volatile items like food and energy, ascended to 3.3 per cent from 3.2 per cent the previous month, again outstripping expectations. "Indexes that increased over the month include motor vehicle insurance, recreation, used cars and trucks, medical care, communication, and airline fares," commented the Bureau. These figures stand as a significant worry for the Federal Reserve, considering their ongoing alarm concerning the enduring nature of inflationary pressures. In a recent address to Congress, Fed chair Jerome Powell remarked there was no "need to be in a hurry" to trim rates, even after last year's cut of the federal funds rate by 100 basis points. Market analysts now foresee only a single rate cut this year, likely to occur in December. Post-release of these statistics, the dollar saw strength against the pound, with sterling dropping 0.5 per cent to $1.238. Typically, higher US interest rates bolster the dollar, as traders can secure higher returns on investments. Concerns are mounting among analysts that President Trump's fondness for tariffs could lead to increased inflation in the months ahead, potentially prompting the Federal Reserve to raise interest rates once more. "What makes today’s rise in CPI inflation data so precarious is that many believe this is just the beginning, as tariffs could push inflation even higher," commented Jochen Stanzl, chief market analyst at CMC Markets. Trump has already implemented tariffs on imports from China and introduced a new 25% tax on steel and aluminium imports. Further measures targeting the EU are anticipated to be unveiled later this week.

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New chair of Monmouthshire Building Society

2025-06-14 10:31:57

Monmouthshire Building Society has appointed Marian Evans as its new chair. She succeeds Roger Turner who stepped down following the end of his tenure at the end of last year. Ms Evans, who has been on the board of the Newport-headquartered mutual since 2021, began her career at NFU Mutual where she became the youngest female sales manager in the UK, looking after a portfolio in excess of £54m by the age of 30. Following her appointment to head of special risks at Thomas Carroll Plc, she went on to expand her property portfolio and launch her own business consultancy, Elevate BC. She said : “It will be a privilege to lead the board at Monmouthshire Building Society. The society is steeped in history, with so much to offer in the future too, as we realise our ambitions to enable our digital transformation. “I look forward to working alongside my colleagues at the Society to continue to deliver our purpose. The society exists to help members, colleagues and communities to thrive, this is what drives us as an organisation and it will be a privilege to help lead that into the future. Many thanks also go to Roger Turner for his wisdom and guidance as chair over the past few years, as well as Trevor Barratt and Liz McKenzie who also left the board at the end of their tenure last year.” The society has also appointed Sham Jagpal as a non-executive director. He brings with him 34 years of experience gained the financial services sector. He joined Zopa Bank as group finance director in 2021, where he has helped build and scale a new fintech bank. He has held a number of senior managerial positions including director of finance at Hampshire Trust Bank, head of group finance at Nationwide Building Society, interim group finance controller at Aldermore Bank and senior vice president of Fortress Investment Group. He said: “I am very much looking forward to working alongside a talented team at Monmouthshire Building Society with such a strong focus on serving local communities. Having the opportunity to make people’s lives better matters to me. Being part of a forward-thinking Society where members come first allows me to give back to the community, helping ensure members’ needs and interests are prioritised and treated with respect.” Monmouthshire’s chief executive, Will Carroll, said: “We are delighted to welcome Sham to the board and Marian into her new role as Chair. These new appointments will enable us to continue to strengthen our leadership and continue to deliver for our members, colleagues and communities.

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Ward Hadaway in talks with Teesside law firm amid potential merger

2025-06-17 16:33:08

North law firms Ward Hadaway and The Endeavour Partnership LLP have confirmed they are in talks over a potential merger. The managing partner of Ward Hadaway, which has offices in Newcastle, Leeds and Manchester, says the two combined business have the potential to create “a stronger, more diverse business” for its clients, as he revealed the firms are currently in discussions. The companies said the move follows a close working relationship over many years, and that exploration of a more official partnership reflects both firms’ shared vision and “commitment to innovation, growth, and delivering enhanced value to clients and stakeholders”. They have confirmed they are conducting due diligence and evaluating how a combined entity could create opportunities for growth and an expanded range of legal services for their respective clients. Steven Petrie, managing partner of Ward Hadaway LLP, said: “This is an exciting time for both firms. By joining forces, we have the potential to expand both our wider legal offering within the North East legal market and beyond and create a stronger, more diverse business to serve our clients even better.” Based in Thornaby, commercial law firm The Endeavour Partnership LLP was established in 2002 and has a team of around 29 solicitors based in a newly renovated building, Tobias House, on Teesdale Business Park. Lee Bramley, managing partner at the Endeavour Partnership LLP said: “The possibility of combining our strengths represents an incredible opportunity. Together, we can achieve scale that will drive innovation and deliver even greater value to our people and our clients.” In a joint statement the firms said that, as discussions progress, both remain committed to transparency and collaboration and that updates will be shared as and when appropriate. Until then, both firms will continue to operate independently. News of the proposed merger comes a few weeks after Ward Hadaway, which now employs more than 500 people, published accounts showing a 7% increase in revenue to £48.1m in the year to the end of April 2024. The firm has previously talked of its ambition to top £100m turnover within 10 years. When the accounts were published Mr Petrie reaffirmed those plans, adding: “These financial results from 2023-24 represent a really strong foundation on which to build, as we strive to realise our ambitious long-term growth plans, remaining independent and increasing our turnover by over 50% in the next five years and achieving £100m by 2034.

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TDR Capital to refinance education provider BPP after £2.5bn sale fails

2025-06-25 21:08:34

Private equity behemoth TDR Capital is exploring refinancing options for BPP Holdings, a leading UK provider of professional and academic education, after attempts to sell the institution fell through. Last summer, reports indicated that TDR was preparing to offload the company, with valuations surpassing £2.5bn, and had enlisted Morgan Stanley and Houlihan Lokey to secure a buyer, as reported by City AM. However, one interested party remarked that autumn presented an "unfortunate time to be trying to sell a business" amidst the economic uncertainties surrounding Rachel Reeves' inaugural budget. Among the potential suitors were private equity firms such as CVC, Cinven, and KKR, according to The Times. With the sale now off the table, TDR is seeking to refinance the educational enterprise. Previously, in 2021, Apollo Global Management-backed Vanta Education sold BPP to TDR for a figure below £700m. Following the acquisition, TDR rapidly expanded BPP's services, including the purchase of Buttercup Solutions, which provides training for pharmacists, pharmacy technicians, and hospital support staff. Last year marked BPP's international expansion with the acquisition of Acsenda School of Management and Arbutus College in Canada. BPP also operates BPP University, renowned for its accountancy and law courses, catering to 38,000 students, predominantly in postgraduate programs. In the financial year leading up to April 2024, TDR reported a pre-tax profit of £43m, a period characterised by significant acquisitions, including the supermarket titan Asda.

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UK government borrowing hits fourth highest level on record in blow for Rachel Reeves

2025-06-19 23:53:58

January's tax receipts have grown at a slower rate than anticipated, indicating that the economy's lacklustre performance might lead to adverse fiscal outcomes. The Office for National Statistics (ONS) reported that the government achieved a monthly surplus of £15.4bn, which means it earned more in taxes than its expenditures, as reported by City AM. However, this was below the £20.5bn surplus forecasted by the Office for Budget Responsibility (OBR). "The undershoot was largely driven by disappointing tax receipts, which were £4.6bn below the OBR's forecast, reflecting the recent weakness of the economy," commented Alex Kerr, a UK economist at Capital Economics. January typically sees a surplus in public finances due to the deadline for self-assessed income tax payments. This year's surplus was the largest since records began in 1993. "While the public finances are often in surplus in January, this year saw the biggest monthly surplus on record, with high January self-assessment receipts bolstering income," stated Jessica Barnaby, deputy director for public sector finances at the ONS. Nonetheless, borrowing for the financial year to date has reached £118.2bn, nearly £13bn above the OBR's October prediction and the fourth highest at this stage of the year on record. "The pressure on the public finances is seemingly relentless," observed Elliott Jordan-Doak, a senior UK economist at Pantheon Macroeconomics. According to the ONS, these developments put fiscal rules at risk. The latest figures are set to increase the pressure on Chancellor Rachel Reeves, as they indicate that the sluggish economy has suppressed tax receipts more than initially anticipated. This will make it harder for Reeves to stick to her primary fiscal rule, which mandates that tax receipts fund day-to-day spending. In October, the Chancellor left a mere £9.9bn buffer against her key fiscal rule, but many experts believe this has been eroded by slow growth and increased borrowing costs. The Office for Budget Responsibility (OBR) is currently preparing its latest batch of economic forecasts, which will determine whether Reeves is on course to fulfil her pledge. These forecasts are due to be published later in March. Early drafts reportedly suggest that Reeves must secure additional funds to ensure she meets the fiscal rule. "The OBR is likely to conclude that the Chancellor's headroom against her fiscal rules has been wiped out and she will probably need to tighten fiscal policy as a result," Kerr stated. Jordan-Doak warned that January's figures can often undergo "large revisions" and self-assessed taxes can frequently arrive late. "But as it stands today, the Chancellor has a bigger job of work to do next month to rectify the fiscal situation," he said. Reports at the end of last week suggested that Reeves was contemplating extending the freeze on income tax thresholds due to the precarious state of public finances.

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International Personal Finance reports record profits and plans for future growth

2025-06-21 22:55:13

International Personal Finance, a consumer credit provider based in Leeds, has reported higher than expected profits for 2024 as it continues to focus on future growth. The firm's pre-tax profit came in at £85.2m, surpassing analysts' predicted range of £78m-£82m, as reported by City AM. The company's annual financial report highlighted record profits from its operations in Mexico and Australia, as well as unprecedented lending volumes in Hungary. Analysts at Peel Hunt commented: "Building on the strong first-half performance, the group has delivered a step-up in growth in the second half, while overall financial results were ahead of previous guidance given exemplary credit quality across the receivables book." The company's balance sheet remained robust, with Peel Hunt analysts describing it as a "key underpinning of future growth." By the end of 2024, the group had £138m of headroom on funding facilities, thanks to securing £103m of bank funding during the year. Consequently, the board increased the firm's final dividend by 11.1 per cent to eight pence, with plans to initiate a £15m share buyback programme. International Personal Finance CEO Gerard Ryan said: "The ongoing execution of our Next Gen strategy has delivered good growth, and we provided over £1bn of credit to those who find it difficult to get finance from banks." "Beyond these strong financial results, we served our 15 millionth customer in September, a great sign of our ability and commitment to supporting underserved communities." The stock is currently trading at approximately six times its forecast earnings for 2025, which Peel Hunt believes "does not reflect the strong performance being delivered and the return to both loan book and earnings growth".

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