Santander UK profit slumps as questions remain over future of British arm
Santander has revealed annual profits tumbled by nearly 40% in the UK as speculation continues to swirl over the future of the British business.
The Spanish-owned high street banking giant reported a 38% drop in pre-tax profits to £1.33 billion for 2024 after taking a hit from provisions for possible motor finance mis-selling and higher savings rates.
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.
Santander executive chair Ana Botin insisted recently that 'we love the UK' and that Britain remains a core market for the firm.
But it is understood a sale of the high street bank would still be considered if a buyer came forward with a high enough offer, according to the Financial Times.
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.
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.
It also saw fourth quarter profits drop 8% on a year earlier to £383 million.
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.
'We will continue to work with Banco Santander to harness the best of our local and global capabilities.'
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