Procurement renegotiations help UK banking giant save £63m
03 Sep 2010
Source: Procurement Leaders
Renegotiation of procurement contracts has helped Santander UK to reduce its retail banking administrative expenses by £63m from £680m to £617m in the six months ended 30 June 2010, like for like.
The banking giant's latest half year report reveals that the savings were largely due to the removal of duplication across back office and support functions due to the integration of Alliance & Leicester and the Bradford & Bingley savings business but that procurement was also a significant contributor. "As well as headcount reductions, savings have been achieved through review and renegotiation of procurement contracts, benefiting from the scale of the Banco Santander, S.A. group, and tight management control of costs."
"Santander UK has delivered a strong performance in a difficult economic environment. Our statutory profit after tax increased by 35% compared to the same period last year, with our trading income up 6% to £2,487m and trading expenses broadly flat," said António Horta-Osório, the company's chief executive.
Read more here
