Abbey savings accounts see 70% increase in deposits

28 October 2008 / by Rebecca Sargent
Abbey has seen its deposit inflow increase 70 per cent year on year, with a total value of £4,300million as Brits rush to keep their savings safe.

Abbey is now owned by Spanish banking giant Santander which has also acquired Alliance & Leicester and the Bradford & Bingley savings book. As a result of various windfalls, the Santander Group has seen an increase in profit of 16 per cent.

It is for these reasons that Brits have been flooding Abbey savings accounts with their deposits in the hope that they will be safer with the banking giant than with other UK banks.

Since the beginning of the financial crisis, several banks have needed rescuing, including the HBOS Group which shocked Brits as it had previously been seen as strong.

In addition to its savings account boost, Abbey has been hailed as 'propping up' the UK mortgage market as Santander announced its third quarter results. Abbey's mortgage balances were up by 12 per cent compared to the same period in 2007 and Abbey mortgages account for 28 per cent of additional mortgage lending this year.

Commenting, Abbey chief executive, António Horta-Osório said: "Abbey has seen another excellent quarter's performance, with good contributions from all areas."

Speaking of the Government's plan to rescue UK banks that Abbey will not be using, he said: "Abbey welcomed these measures, and while we won't utilise the recapitalisation scheme with Government funds, we fully supported the Government Scheme."

Finally, commenting on Abbey's strong savings stance, Mr Horta-Osório added: "We had strong deposit inflows demonstrating that Abbey, backed by the strength of Santander, is regarded as a secure and trusted home for UK savings customers."

As a result of its acquisitions, Santander now owns a 10 per cent market share of UK savings deposits and 13 per cent of the UK's mortgages. Abbey is now the UK's second largest mortgage lender and third for deposits.

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