Abbey progress 'disrupted by takeover'

Abbey National said today that disruption caused by a planned takeover by Spain’s largest bank had restricted its progress in recent months.

The banking giant told investors that the “well-publicised distraction and uncertainty” resulting from the Santander Central Hispano (SCH) move had hit the business.

But a quick conclusion to the deal, which is expected to be completed on November 12, prevented a marked deterioration.

This was shown in the group’s third quarter results, which were broadly consistent with the second quarter of its financial year.

The trading statement came days after shareholders in SCH voted to approve the £9 billion takeover of Abbey.

The tie-up, which will create the fourth largest bank in Europe and the eighth largest in the world, now only needs the backing of regulators.