British banks make £500million MORE this year despite crunch

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The major banks have made £500 million more from their British customers this year despite the global credit crunch.

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Re: British banks make £500million MORE this year despite crunch

British banks make £500million MORE this year despite crunch


By Ryan Kisiel
Last updated at 8:21 AM on 11th August 2008

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The major banks have made £500 million more from their British customers this year despite the global credit crunch.
Critics have accused the banks of taking advantage of account holders by charging more for mortgages, loans and credit cards.
Latest figures show that five of the Britain's biggest banks made nearly £500 million more in UK profits in the first half of this year compared to last.

Money-maker: The Royal Bank of Scotland has increased its profits from its UK businesses by 9.2 per cent despite the economic slowdown
The figures from the banks half-year reports show that Lloyds TSB, Royal Bank of Scotland, Barclays, HSBC and HBOS made combined profits of £4.294 billion this year and only £3.808 billion in 2007.
It comes as the banks also registered billions of pounds of losses in their global businesses.
The results will be shocking for many British families who paying more for their banks' financial services while struggling to cope with rising living costs.
Tim Newhouse, of price comparison website moneysupermarket.com, said: 'The UK's big five banks are crying poor globally, but doing well locally.'
The figures show that the Royal Bank of Scotland has increased its profits from its UK businesses by 9.2 per cent.

This is despite the global company announcing one of the biggest losses in banking history last week - a total of £691 million.
Mortgage rates have also increased compared to last year.

Home loans were available at more than 0.25 per cent below the Bank of England base rate last year, but are now 0.75 per cent above the base rate.
A British Bankers' Association spokesman said: 'UK banks offer a unique variety of services which are fee-free to customers but which cost banks to provide.

'High street account holders are not losing out to prop up business elsewhere where customers routinely pay for every transaction they make.

Bank profits depend largely on wholesale rather than retail customers.'