30 March 2015

Banco Santander plans £300m cost cuts at Abbey

26 July 2004  |  8233 views  |  0 abbey hq

Spain's Banco Santander Central Hispanico, the bank that is taking over Abbey in an £8.5bn deal, has disclosed details of a three year cost cutting plan which includes a reduction in middle and back office processing at the UK bank.

In a document disclosing details of the merger, Banco Santander says it plans to reduce costs at Abbey by £300m a year, mainly through cut-backs in technology, although the Spanish bank did not specify how many jobs would be axed.

The Spanish bank says it expects to make "significant savings" in IT by eliminating any duplicate systems and projects at Abbey that overlap with its own.

Banco Santander also states that it plans to invest in customer facing areas whilst extracting maximum efficiency from the back office. Cost savings that will start to materialise from 2007 onwards will be based on a thorough re-engineering of Abbey's core systems and processes and will result in significant reductions in the size of middle and back-office processing areas, improved productivity in branches and improved use of IT infrastructure.

The takeover of Abbey will make Banco Santander the world's 10th biggest bank by market value and the fourth largest in Europe.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

19 July, 2004
30 June, 2004
04 May, 2004
26 April, 2004
14 April, 2004
16 January, 2004
14 January, 2004
13 January, 2004
15 December, 2003
10 December, 2003

Related company news

 

Who is commenting?

Top topics

Most viewed Most shared
Banking has reached a digital tipping poin...
10045 views comments | 54 tweets | 30 linkedin
Europe sets the pace as fintech investment...
5610 views comments | 29 tweets | 20 linkedin
Google preps Gmail bill payment feature
4758 views comments | 14 tweets | 12 linkedin
Barclays and PayPal join Government ID acc...
4558 views comments | 10 tweets | 11 linkedin
Future Money Focus: Mariano Belinky, Santa...
4368 views comments | 7 tweets | 10 linkedin

Featured job

to £100k base, commission, benefits
London, UK

Find your next job