Select a page

Banking News

Santander UK's profits drop

Santander UK’s profits drop

(27 October 2016 – Spain) Spanish giant, Santander’s UK business has reported a fall in profits as it repeated warnings that earnings could take further hits as a result of the EU referendum.

Santander UK announced that pre-tax profits fell to £477 million (A$765 million) in the three months to September, down from £496million at the same stage last year.

The bank’s profits were also down £1.09billion, a drop of two percent over the nine-month period to the same date.

The UK market contributes roughly 20 percent of Santander's group profits.

The bank’s chief executive Nathan Bostock said: “Although we have not seen a material impact on our business in the short period since the EU referendum, we do expect a more challenging macroeconomic environment ahead.

“This increased caution has prompted us to revise our 2018 return on tangible equity, cost-to-income and NPL ratio targets, as disclosed at the 2016 Banco Santander strategy update in late September.”

In September, Santander reduced its group profitability goal, along with its targets for Spain and the UK.

Additionally, the bank has put aside an additional £30million to cover costs related to the misselling of payment protection insurance, bringing its total provisions over the past nine months to £397million.

East & Partners's avatar

Comment on this article

 

Your comments will not be published. Required fields are marked *

 

Please enter the word you see in the image below:


Subscribe

Subscribe to our mailing list

Sign up now to keep up-to-date with the latest
market news and insights in B2B banking.

* indicates required

For more information please read our Terms and Conditions and Privacy Statements.