Santander UK’s annual profit tumble follows the group’s move to put by £295 million in its third quarter to cover potential payouts as well as legal costs following a major court decision on car finance commission last autumn.
It comes as questions remain over the future of the UK business, despite efforts by Spanish owner Banco Santander to quash rumours that the lender is considering pulling out of the UK.
But Mike Regnier, chief executive of Santander UK, said: “While challenges remain, and there have been mixed signals about the UK’s recent economic performance, the outlook for our business has improved.
The group’s result was also affected by the high cost of savings products and a rush of demand earlier in the year, although the group cut rates later in 2024 to make them less attractive.
Santander has revealed annual profits tumbled by nearly 40% in the UK as speculation continues to swirl over the future of the British business.
