‘Cost efficiencies’ programme planned for UK arm rocked by car loan commission scandal last November.
Santander’s executive chair, Ana Botín, has since tried to quell rumours of a disposal, saying the UK was a “core market and will remain a core market for Santander”, but speculation was further fuelled by the surprise resignation of the UK arm’s chair, William Vereker, days later.
Santander UK saw its pre-tax profits tumble by more than a third to £1.3bn, partly owing to the £295m it was forced to put aside to cover potential compensation for the car loan commission scandal last November.
Barring the case being overturned at the supreme court in April, lenders including Santander UK, Lloyds Banking Group and Close Brothers could face a combined bill of £44bn, coming close to rivalling the payment protection insurance (PPI) mis-selling saga.
Staff at Santander UK are bracing themselves for further job losses, as the bank confirmed it would push ahead with a cost-cutting programme after a 38% drop in full-year profits.
