Standard Life Bank could be sold

by Richard Kilner

Story link: Standard Life Bank could be sold

Speculation that Standard Life’s banking business could be sold off is mounting, following chief executive Sandy Crombie’s latest hint.

The banking arm’s performance has been weak, and it has been battered by the financial turbulence arising from the US subprime mortgage crisis and ensuing credit crunch.

Yesterday Crombie unveiled Standard Life’s performance, which revealed strong profits across the board of its UK division, with the exception of banking.

At present Standard Life Bank services a customer base of 375,000, and holds £4.6bn in savings and deposits.

Recent profits have fallen by 16%, to just £32m.

Crombie has said that should profitability targets prove unattainable then alternative measures would be considered, broadly considered a heavy hint at the sale of the firm’s banking business.