Bank profits rise by 87% - Cable

6.39.03pm GMT Mon 19th Feb 2007

head of major banks' profit announcements Liberal Democrat research has calculated their pre-tax profits could reach £230 per customer. This is 23% higher than in 2000 and 87% higher than 1997.

In 1999, the Chancellor commissioned Don Cruickshank to review competition in the UK banking system. As the seventh anniversary of the Cruickshank Report approaches, its recommendations have still not been implemented.

Commenting, Liberal Democrat Shadow Chancellor, Vince Cable MP said:

"An annual profit per customer of £230 is completely unjustifiable. It is particularly distasteful that this news comes at a time of spiralling personal debt and increasing numbers of bankruptcies.

"It is obvious that very little has changed in the seven years since the Cruickshank Report was published. Banks are still enjoying excessive profits, based all too often on the exploitation of vulnerable customers through unfair, and in some cases illegal, bank charges.

"The Government's piecemeal attempts to deal with these issues have seen a complete failure to implement any of the recommendations made in the Cruickshank Report.

"Gordon Brown should stop worrying about his reputation with the haves and instead start thinking about the have-nots.

"It is imperative that there is a new review of the banking sector, with a complete overhaul of the banks' monopoly.

"When he accepted Cruickshank's recommendations, Gordon Brown said that banking services must be 'exposed to the full rigours of competition'. It is high time that the Chancellor made good his word."

Applicability: this item refers to the UK.