Category Archives: Banking

NatWest to pay UK government £190m as Farage crisis rocks bank

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Crisis-hit group plans to pay dividends worth £500m to investors after quarterly profits rise by 27%

NatWest will make a fresh £190m payout to its largest shareholder, the UK government, after Downing Street had an influence in the resignation of Alison Rose as the bank’s chief executive amid a row over Nigel Farage’s accounts.

The crisis-hit group said it was planning to pay dividends worth £500m to its investors after another strong quarter in which pre-tax profits rose by a higher than expected 27% to £1.8bn in the three months to June. That was compared with £1.4bn a year earlier, as the bank benefited from rising interest rates that allowed it to charge borrowers more for loans and mortgages.

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Why Nigel Farage’s bank account matters so much – podcast

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Since the politician’s account with Coutts was closed, the story has dominated the news agenda. Does it show that something has gone very wrong in our banking system?

On the surface it may not sound like a story that would generate national interest. A controversial politician finds his bank account with a bank catering to the ultra-wealthy has been closed. So why has it dominated news headlines?

Last month Nigel Farage posted a six-minute video on social media explaining that his bank account had been shut, that he was struggling to find another one and that the “establishment” was trying to force him out of the UK. He thought it was his political views that were behind the decision. But a later BBC story claimed it was a lack of funds, not his beliefs, behind the closure.

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Khan dismisses Sunak’s attack on his housebuilding record in London as ‘desperate nonsense’ – UK politics live

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Mayor of London hits back at prime minister over ‘pathetic gesture politics’

Rishi Sunak has failed to give his full backing to Sir Howard Davies, chairman of NatWest, in interviews this morning, PA Media reports.

PA says that Sunak did not back calls for the resignation of Davies in a pooled interview this morning – but also that Sunak would not say whether he had confidence in him.

What I said right at the start of this was that it wasn’t right for people to be deprived of basic services because of banking, because of their views.

This isn’t about any one individual, it’s about values – do you believe in free speech and not to be discriminated against because of your legally held views?

As a result of this policy, a dozen classrooms of children, including some of the most traumatised and vulnerable children in the world, have gone missing and, sickeningly for us, 50 children are still missing from the hotel used in Brighton and Hove.

Importantly the high court also makes clear that the home secretary already has the power to require local authorities across the country to take children into foster care via a statutory rota system called the national transfer scheme.

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Australians lodge almost 100,000 banking and finance complaints in year

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Record number of complaints caused by rising financial stress combined with relentless battle against scammers

Australians lodged a record 96,987 complaints against financial institutions over the past year, as rising financial stress combined with a relentless battle against scammers to trigger a steep rise.

The increase was partly fuelled by a 27% rise in banking and finance-related disputes in 2022-23, including a significant number of complaints from those experiencing financial difficulty.

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NatWest was caught out by Nigel Farage’s deft political game

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Tory anger over Coutts affair led to bank’s board feeling it had no choice but to sack CEO Alison Rose

Just after 5.40pm on Tuesday afternoon, the two people in charge of NatWest Group put out a joint statement. Dame Alison Rose, its chief executive, admitted she had been the source for an incendiary BBC story about Nigel Farage’s accounts at its exclusive private bank, while Sir Howard Davies, the bank’s chair, expressed his support for her remaining in charge of the lender.

Eight hours later, the bank had performed a dramatic reversal, having catastrophically misjudged the mood of its largest shareholder, the UK government. After last-minute interventions from both the prime minister, Rishi Sunak, and the chancellor, Jeremy Hunt, board members convened for a late-night virtual call that was to spell the end of Rose’s 31-year career with the bank.

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Sunak and Hunt accused of ‘damaging UK plc’ over NatWest boss’s exit

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Concerns raised over anonymous briefings that triggered early-hours resignation of Dame Alison Rose

The prime minister and the chancellor have been accused of “damaging UK plc” and failing to follow due process amid concern over anonymous briefings that triggered the early-hours resignation of NatWest boss Dame Alison Rose.

“There is a real sense of disquiet that political pressure has led to a midnight exit for such an important banking CEO,” an official at the City regulator, the Financial Conduct Authority, told the Guardian. “They should have allowed due process.”

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NatWest boss Alison Rose resigns over Nigel Farage Coutts account row

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Former Ukip leader obtained report suggesting media coverage of his political views was considered in Coutts closure decision

Dame Alison Rose, the chief executive of NatWest Group, has stood down after a row over the closure of Nigel Farage’s bank account with the private bank Coutts, which NatWest owns.

Rose has resigned from the banking group after the former UK Independence party leader complained to the BBC about a report that claimed his accounts with Coutts were closed for commercial reasons. The broadcaster has since apologised and amended its story.

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Nigel Farage calls for NatWest bosses to go after chief executive resigns over Coutts row – business live

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Live coverage of business, economics and financial markets as UK bank replaces leader following late night board meeting

The minister in charge of overseeing the UK’s financial services has said that “it is right” that Alison Rose has resigned from NatWest Group, calling the closure of Nigel Farage’s bank account “unacceptable”.

Andrew Griffith, the City minister, said the resignation “would never have happened” had NatWest Group’s subsidiary, Coutts, not withdrawn the account “due to someone’s lawful political views”.

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Nigel Farage praises ‘swift’ intervention by ministers over closed Coutts account

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Ex-Ukip leader welcomes prospect of law to stop bank account closures due to customers’ political views

Nigel Farage has praised a “swift” intervention by ministers after reports that new laws could be drawn up to stop banks closing customers’ accounts because they disagree with their political views.

The former Ukip leader said MPs were “beginning to realise that this system is coming for them as well” after his bank accounts were closed by Coutts, he says because his views “did not align with” its values.

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Sunak, Braverman and City regulator wade into Farage banking row

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FCA chief says banks cannot ‘discriminate’ against political views, but chair argues it’s up to Coutts ‘who they do business with’

The City regulator has said it has contacted the owner of Coutts bank amid a growing row over its decision to close Nigel Farage’s accounts, but told MPs that while lenders cannot discriminate against customers, it is ultimately up to firms to decide who to do business with.

It came as the prime minister, the home secretary and the City minister waded in to the growing debate over the rights of lenders to shut or refuse accounts based on concerns over customers’ political views.

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UK savings: more accounts now offering 6%-plus interest

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Government-backed NS&I increases its rates, as building societies and banks launch better deals

Amid the mortgage misery, there was more good news this week on savings rates, with a growing number of accounts now paying 6%-plus interest.

Meanwhile, the government-backed NS&I – a favourite of many in these uncertain times – has upped the rates on some of its popular fixed-rate accounts.

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Young renters reducing spending amid cost of living crisis more than any other group: CBA boss

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Commonwealth Bank head Matt Comyn said people who bought their first home during the pandemic had also reduced spending by around 30%

Renters are hitching their belts even tighter than mortgage holders as rising prices erode their savings capacity.

Commonwealth Bank data suggests those aged between 25 and 29, who are likely facing sharp rental increases, are pulling back on spending more than any other group.

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Average rate on five-year fixed mortgage deal in UK climbs above 6%

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Rate is at highest level since last November, and average two-year fix is now 6.47%

A typical five-year fixed mortgage deal in the UK now has an interest rate of more than 6%, putting further pressure on borrowers who are hoping to buy a home or reaching the end of their existing deals.

Data from the financial information firm Moneyfacts shows the cost of a five-year deal for homeowners rose to 6.01% on Tuesday, up from 5.97% on Monday. It is the highest level since last November, after mortgage rates had been driven up by the mini-budget chaos of last autumn.

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Watchdog summons UK bank bosses to discuss weak savings rates

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Financial Conduct Authority to meet executives on Thursday as part of its investigation into savings market

UK bank bosses have been summoned to a meeting with the financial watchdog this week amid mounting concerns that they are profiting from rising interest rates by offering paltry savings rates to customers.

Executives from the big high street names Lloyds Banking Group, NatWest, HSBC and Barclays, as well as from smaller lenders, are due to attend a meeting at the Financial Conduct Authority (FCA) on Thursday to discuss concerns that savings rates are lagging far behind the soaring costs of mortgages and loans.

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Nigel Farage row: minister warns banks against closing accounts

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Tom Tugendhat asks Treasury to review whether banks are blacklisting those with controversial views

It should be “completely unacceptable” for banks to close accounts on “political grounds”, a Home Office minister has said, as Conservatives weighed in on a so-called freedom of speech row prompted by claims from Nigel Farage.

Tom Tugendhat, the security minister, was speaking in parliament after the culture secretary, Lucy Frazer, urged regulators to take action against banks that shut off access to people with controversial views.

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Major Commonwealth Bank outage prevents some customers from accessing accounts

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CBA says issue resolved without reporting cause, but advises delay in some payments as services brought back online

Commonwealth Bank suffered a major outage on Monday, with customers unable to access their accounts, including transfers and payments, for several hours.

Customers reported not being able to check their account balances or transfer funds in the Netbank app and some said they were unable to make purchases. Credit cards appeared unaffected at the time of reporting.

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Sydney CBD sees uptick in commuters as big banks lead push to return workers to offices

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City train stations at 70% of pre-pandemic capacity amid warnings of potential effects of bringing workers back full-time

Workers are returning to offices in inner Sydney as a handful of large companies, including big banks, tell employees to come back from their kitchen tables.

The corporate-led trend is observable in public transport usage figures that show a recent uptick in office returns. It marks a shift in working arrangements after Australians appeared to have largely settled into their new hybrid habits.

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Economists split over prospects of another rate rise ahead of RBA meeting

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Despite 11 hikes in the cash rate since last May, some forecasters think the central bank could still raise borrowing costs again

It’s Reserve Bank roulette time for another month with borrowers and pundits bracing for the potential of another rate rise surprise.

Since May last year, the central bank has lifted interest rates on the first Tuesday of each month, with only the January holiday break and a short-lived pause in April breaking the metronomic rise in mortgage pain.

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HSBC increases interest rates on some savings accounts

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Rises of up to 0.75 percentage points follow increases at First Direct

Customers of HSBC will receive a boost to their savings after the bank announced an increase to interest rates, as Britons enjoy some of the highest rates in more than a decade.

The lender is increasing rates on some of its savings accounts, with increases of up to 0.75 percentage points.

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Albanese government urged to push international banks to stop funding fossil fuel development

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Exclusive: Report claims Australia’s shareholdings in development banks has made it responsible for investing $828m in fossil fuel projects over five years

Australia’s shareholdings in three international banks – including the World Bank – has seen it responsible for investing $828m in fossil fuel projects between 2016 and 2021, according to a research report.

The World Bank, the Asian Development Bank and the Asian Infrastructure Investment Bank have collectively pumped $32.85bn into fossil fuel projects – almost entirely linked to oil and gas production or power generation – over the same period, the report says.

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