Commercial news round-up: HSBC, Barclays, Co-op, business rates, Kraft Heinz, Bovis
updated on 23 February 2017
This round-up is big on banks; they seem to have featured heavily in the past week’s news cycle. For tales of their varying woes, plus much more, read on:
- HSBC is staring down the barrel of uncertain times, as it reveals its profits dropped by 62% in 2016 and is facing a new investigation by the FCA into potential breaches of money laundering rules. As such, it is revising downwards the pay its top executives will receive and seeking a new chair for its board.
- Much better news for Barclays, which announced that it nearly trebled its profits in 2016, reaching a staggering pre-tax amount of £3.2 billion. However, it’s not all sunshine and lollipops; the bank’s chair said there are many challenges ahead, including the need to “mitigate the risk of the UK’s exit from the EU”.
- And news last week of the troubled Co-operative Bank being put up for sale has been followed this week by a distinct lack of interest from potential buyers – the Independent asks where this leaves the ethical banking model.
- The first business rates rise in seven years is causing grave concern to small companies, especially those based in London, as they face the biggest hike. London mayor Sadiq Khan has voiced his shock and said the rates rise could force thousands of businesses to shut down.
- One of the world’s biggest ever mergers came to nothing over the weekend, as Kraft Heinz announced that it had agreed amicably with Unilever not to go ahead with the proposed takeover, putting an end to the £115 billion union.
- Bovis Homes has had to apologise to – and pay – many hundreds of its customers for what have been established to be poorly built new homes around the country. The housebuilding company faces a bill of £7 million in compensation.
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